TCRLA_Public/181003.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, October 3, 2018, Vol. 19, No. 196



ALGODON WINES: All Five Proposals Approved at Annual Meeting
ARGENTINA: IMF Doesn't Have the Right Medicine for Country
CABLEVISION SA: Fitch Withdraws B IDR Amid Telecom Argentina Deal


BOLIVIA: Gets $51.6MM-IDB Loan to Boost Electricity Sector


ADECOAGRO SA: Moody's Affirms Ba2 CFR & Alters Outlook to Stable

D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: 3 Power Plants Coming to Ease Energy Crunch
DOMINICAN REPUBLIC: Will Allocate US$580MM for Electricity Subsidy


BANORTE BNTECB 07-2: Moody's Puts Ba3 on Sub. Certs on Review
OFFSHORE DRILLING: Fitch Affirms CC LT Issuer Default Ratings

T R I N I D A D  &  T O B A G O

PETROLEUM CO: Energy Chamber Meets With Transition Team

                            - - - - -


ALGODON WINES: All Five Proposals Approved at Annual Meeting
Algodon Wines and Luxury Development Group, Inc. reconvened its
2018 Annual Stockholder Meeting on Sept. 28, 2018, at which the

   (1) elected John I. Griffin as director to be effective upon
       the uplisting of the Company's common stock to a national

   (2) ratified and approved Marcum, LLP as the Company's
       independent registered accounting firm for the year ended
       Dec. 31, 2018;

   (3) approved a reverse stock split of the outstanding shares of
       common stock in a range from one-for-two up to
       one-for-twenty, or anywhere between, if required for
       the uplisting of the Company's common stock to a national

   (4) approved the 2018 Equity Incentive Plan; and

   (5) approved an amendment to the Company's certificate of
       incorporation to change Company's name from "Algodon Wines
       & Luxury Development Group, Inc." to "Algodon Group, Inc."

                      About Algodon Wines

Through its wholly-owned subsidiaries, Algodon Wines & Luxury
Development Group, Inc. -- invests
in, develops and operates real estate projects in Argentina.
Based in New York, AWLD operates a hotel, golf and tennis resort,
vineyard and producing winery in addition to developing
residential lots located near the resort.  The activities in
Argentina are conducted through its operating entities:
InvestProperty Group, LLC, Algodon Global Properties, LLC, The
Algodon - Recoleta S.R.L, Algodon Properties II S.R.L., and
Algodon Wine Estates S.R.L.  AWLD distributes its wines in Europe
through its United Kingdom entity, Algodon Europe, LTD.

Algodon Wines reported a net loss attributable to common
stockholders of $8.25 million for the year ended Dec. 31, 2017,
compared to a net loss attributable to common stockholders of
$10.04 million for the year ended Dec. 31, 2016.  As of June 30,
2018, the Company had $5.39 million in total assets, $4.67 million
in total liabilities, $9.02 million in series B convertible
preferred stock, and a total stockholders' deficiency of $8.30

Marcum LLP, in New York, the Company's auditor since 2013, issued
a "going concern" opinion in its report on the consolidated
financial statements for the year ended Dec. 31, 2017, citing that
the Company has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations.  These conditions raise substantial doubt about the
Company's ability to continue as a going concern.

ARGENTINA: IMF Doesn't Have the Right Medicine for Country
Jon Sindreu at The Wall Street Journal reports that faced with a
currency crisis, Argentine President Mauricio Macri's first
instinct was to call the International Monetary Fund.

The conditions of the bailout deal, however, risk prolonging the
IMF's dubious track record when it comes to helping emerging
economies, according to The Wall Street Journal.

The agreement reached between Argentina and the IMF brought the
total bailout package to $57.1 billion through 2021, according to
The Wall Street Journal.  The cash injection is good news in the
short term because Argentina's government has a lot of U.S.
dollar-denominated debt to service and the peso is down more than
50% against the greenback this year, the report notes.

But it seems unlikely that the conditions imposed by the IMF will
ensure the robust economic recovery many international investors
are hoping for, the report says.

First, the IMF will only allow the Argentine central bank to shore
up the peso if it falls beyond a certain level, and only by
spending a maximum of $150 million dollars, the report discloses.
If investors are intent on selling, that quantity may be little
more than a water gun, the report relays.

Second, to fix its inflation problem, the central bank will be
forced to keep the amount of money it issues unchanged - it's now
growing at a 24% annual pace -- and the government will need to
massively slash its budget deficit, the report notes.

This cocktail of policies echoes back to the 1970s, when limiting
the amount of money central banks could print became all the rage,
the report relays.  The approach proved unworkable and was soon
abandoned, the report notes.  Many of the countries the IMF helped
back then weren't doing any better by the 1990s, the report

For countries like Argentina, the key determinant of inflation
isn't the amount of money in the economy, government spending or
even central-bank policy, the report relays.  Instead, they are at
the mercy of global capital flows, the report notes.  When the
Federal Reserve raises rates and investors flock to the dollar,
emerging-market currencies plummet and import prices surge, the
report says.  Workers and companies respond by trying to set wages
and prices higher, the report discloses.  Argentina is
particularly prone to this problem because of its strong unions
and dollarized utility prices, the report notes.

Fixing Argentina's economy may require painful measures, such as
freezing public-sector wages, tempering union power and putting up
with lower corporate profit margins, the report relays.  The
government should also limit dollar debts, the report notes.  In
the longer term, elements of China's development success might
offer a roadmap: Exchange rate stability, coordinated policy on
incomes and a focus on producing exports in scale industries, the
report says.

Targeting deficits and arcane monetary targets could indirectly
achieve some of these goals, but it could also do a lot of damage,
the report discloses.  Rehashing the 1970s doesn't look a useful
path forward for Argentina, the report notes.  Investors should
stay away, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Sept. 4, 2018, S&P Global Ratings placed on Aug. 31, 2018, its
'B+' long-term and 'B' short-term sovereign credit ratings on
Argentina on CreditWatch with negative implications. At the same
time, S&P placed its 'raAA' national scale rating on CreditWatch
negative and affirmed its 'BB-' transfer and convertibility
assessment.  The CreditWatch negative reflects the risk of
worsening creditworthiness due to potentially weakened
implementation of the government's strategy to stabilize the
economy. Exchange rate volatility, as shown by recent pressure on
the Argentine currency, could jeopardize the effective
implementation of economic adjustment measures, absent further
steps to boost investor confidence.  Consequently, S&P Global
Ratings corrected its short-term ratings on Argentina
by removing them from CreditWatch with negative implications.

Fitch Ratings affirmed on May 8, 2018, Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'B' and revised
the Outlook to Stable from Positive.

On December 4, 2017, Moody's Investors Service upgraded the
Government of Argentina's local and foreign currency issuer and
senior unsecured ratings to B2 from B3. The senior unsecured
shelves were upgraded to (P)B2 from (P)B3. The outlook on the
ratings is stable.  At the same time, Argentina's short-term
rating was affirmed at Not Prime (NP). The senior unsecured
ratings for unrestructured debt were affirmed at Ca and the
unrestructured senior unsecured shelf affirmed at (P)Ca.

As previously reported by the TCR-LA, Argentina defaulted on some
of its debt late July 30, 2014, after expiration of a 30- grace
period on a US$539 million interest payment.  Earlier that ,
talks with a court-appointed mediator ended without resolving a
standoff between the country and a group of hedge funds seeking
full payment on bonds that the country had defaulted on in 2001.
A U.S. judge had ruled that the interest payment couldn't be made
unless the hedge funds led by Elliott Management Corp., got the
US$1.5 billion they claimed. The country hasn't been able to
access international credit markets since its US$95 billion
default 13 years ago. On March 30, 2016, Argentina's Congress
passed a bill that will allow the government to repay holders of
debt that the South American country defaulted on in 2001,
including a group of litigating hedge funds that won judgments
in a New York court. The bill passed by a vote of 54-16.

CABLEVISION SA: Fitch Withdraws B IDR Amid Telecom Argentina Deal
Fitch Ratings has withdrawn Cablevision S.A.'s Local Currency
Issuer Default Rating (IDR) of 'BB-'/Stable and Long-Term Foreign
Currency IDR of 'B'/Stable, following its merger with Telecom
Argentina S.A., with the latter being the surviving entity. As of
Jan. 1, 2018, all assets and liabilities of Cablevision were
absorbed into Telecom Argentina, including USD500 million senior
unsecured notes due 2021.

Fitch currently maintains a 'B+'/'RR3' Rating on USD500 million
senior unsecured notes due 2021, which were assumed by Telecom
Argentina. The rating for these notes has been transferred to the
Telecom Argentina entity in Fitch's database. No other rating
actions have been taken. On April 27, 2018, Fitch assigned a Long-
Term Local Currency IDR of 'BB-'/Stable and Long-Term Foreign
Currency IDR of 'B'/Stable to Telecom Argentina.

Fitch will continue to provide ratings for Telecom Argentina; the
company's current ratings reflect its strong business position and
conservative financial profile. Telecom Argentina's Long-Term
Foreign-Currency IDR is constrained by the 'B' country ceiling of
the Republic of Argentina, which limits the FC rating of most
Argentine corporates.


Fitch has withdrawn the following ratings:

Cablevision S.A.

  - Foreign Currency IDR 'B'; Outlook Stable;

  - Local Currency IDR 'BB-'; Outlook Stable;

Fitch has transferred the following issuance rating from
Cablevision to Telecom Argentina

  - USD500 million Senior Unsecured Notes ('B+'/'RR3')


BOLIVIA: Gets $51.6MM-IDB Loan to Boost Electricity Sector
The Inter-American Development Bank (IDB) has approved a
$51.6 million loan for Bolivia which will strengthen sustainable
development of the electricity sector, including the promotion of
renewable energies such as geothermal, solar and wind power. At
present, 80 percent of the electricity that Bolivia produces comes
from fossil fuels and the rest from renewable sources.

This funding will also boost efficient use of energy and
contribute to universal access to electricity. Currently,
Bolivia's electrical power service coverage is estimated at 90
percent but the challenge remains of reaching the remaining 10
percent, which to a large extent includes rural areas.

In a bid to close that gap, the government of Bolivia approved the
National Economic and Social Development Plan for 2016-2020 (known
as the PDES in Spanish) which spells out goals, results and
sector-by-sector action over the medium term, with the pillars of
the so-called Patriotic Agenda 2025. For the electricity sector
the PDES establishes energy sovereignty, the universalization of
electrical power service, a boost in use of renewable energy
sources and energy integration and security.

This Programmatic Policy-based Loan (PBP) is in line with the
goals set out in the PDES for 2016-2020, as it will generate
benefits through the diversification of the electricity grid with
renewable energies, both conventional and non-conventional, that
will help cut greenhouse gas emissions. Benefits are also expected
through the export of surplus natural gas and lower costs of
generating electricity.

The program also features a gender equality component. The
Bolivian energy sector, particularly the part involving
electricity, is a major source of employment and revenue. This led
the National Electricity Company, or ENDE, with the support of the
IDB, to carry out a gender study to understand the low
representation of women in the company and boost its policy and
operational framework so as to achieve greater gender equality.
The results of the study prompted the development of
recommendations and guidelines for coming up with a gender policy
and action plan within the company.

The program approved foresees total lending of $51.6 million. Of
that, $43.86 million is from regular ordinary capital that is to
be paid back by 2033 and with an interest rate pegged to the
LIBOR, while $7.74 million is concessional ordinary capital
granted over a span of 40 years, with a 40 year grace period and
an interest rate of 0.25 percent.

As reported in the Troubled Company Reporter-Latin America on
July 5, 2018, Fitch Ratings has affirmed Bolivia's Long-Term
Foreign Currency Issuer Default Rating (IDR) at 'BB-' with a
Stable Outlook.


ADECOAGRO SA: Moody's Affirms Ba2 CFR & Alters Outlook to Stable
Moody's Investors Service has affirmed Adecoagro S.A.'s Ba2
Corporate Family Rating and the Ba2 rating on its senior unsecured
rating. Outlook changed to stable from negative.

Outlook Actions:

Issuer: Adecoagro S.A.

Outlook, Changed To Stable From Negative


Issuer: Adecoagro S.A.

Corporate Family Rating, Affirmed Ba2

Senior Unsecured Regular Bond/Debenture, Sep 21, 2027, Affirmed


The stabilization of Adecoagro's outlook follows the company's
decision to scale back on the investment proposal to acquire
control of SanCor Cooperativas Unidas Limitadas, an Argentinean
dairy cooperative. When the deal was announced, on March 24,
Moody's estimated the deal could amount to up the $390 million.
The transaction would have increased leverage to above its
downgrade triggers while also incorporating execution risks. But,
September 12, 2018, Adecoagro announced that it had withdrawn the
initial joint-venture offer and submitted to SanCor a new proposal
to acquire two milk processing plants and two trademarks.
Currently, Moody's expects that any acquisition of assets from the
cooperative will be modest in size, not pressuring leverage or
liquidity levels.

Adecoagro's Ba2 ratings incorporate its relevant position in
Brazil's sugar-ethanol sector, economies of scale due to the large
size of its plants, high productivity levels, and the ownership of
over 89% of its sugarcane, which allow for a low cost profile
among its peers. The company's strong credit metrics, conservative
financial policies, and adequate liquidity profile are also key
rating considerations, especially in light of the sugar-ethanol
industry's inherent volatility. Adecoagro's experienced management
and the diversification into agricultural products in Argentina
partly mitigate weather and other event risks, being additional
credit positives.

In 2017, Adecoagro had a production cost of 11.5 cents per pound,
including planting renewal and annual plantation maintenance,
which compares to an average 15 cents per pound for Brazilian
producers. In 2018 Moody's expects the company's cost to reach 9
cents per pound, driven by higher crushing volumes, cost
efficiency gains and the depreciation of the Brazilian Real.
Supporting the company's overall cost efficiency and profitability
levels are (i) the continuous harvest system, eliminating the off-
season downtime, thus further increasing production and energy
generation relative to its fixed costs; (ii) a lower land lease
cost by being mainly located in the state of Mato Grosso do Sul
(MS), in comparison to most sugar and ethanol installed capacity
in Sao Paulo; (iii) high installed cogeneration capacity having
generated 712 thousand MWh in 2017, or 69 KWh per ton; and (iv)
tax benefits for ethanol sales in the state of MS. In turn,
Argentina, where the company has most of its farming operations,
is a competitive global producer of soybeans and corn. In
2017/2018 Argentina was the 4rd largest soybean producer globally
and 5th largest corn producer. Seventy percent of the company's
crops are produced in the humid Pampas region, with a favorable
weather pattern and rich soil. Even after the severe drought
suffered in Argentina in 2017/2018, the company results observed
little impact with the lower yields on soybeans and corn being
compensated by higher average prices and improved yields on rice

Adecoagro remains focused on improving productivity and reducing
unitary production costs. The company's most relevant investments
will be concentrated in expanding its sugarcane crushing capacity
to 14.2 million tons by 2022 from to 11.2 million in 2016. Other
projects include doubling the amount of milking cows to 14,000
heads in 2022 compared to 7,000 in 2016, and improving rice
processing and distribution assets. Moody's expects capex to
amount to $206 million in 2018, being $100 million directed to
expansion projects.

The ratings are constrained by Adecoagro's exposure to commodity
price volatility and its raw material concentration in the state
of Mato Grosso do Sul, where about 74% of its EBITDA was generated
by two sugarcane mills in 2017 (an average participation of 66% in
the last three years). Moody's views the organization in
production clusters in the sector as an important competitive
advantage, since it increases operating efficiencies and enhances
cost structure. Nevertheless, the fact that Adecoagro runs just
one major cluster and concentrates most of its EBITDA generation
in a limited geographic region exposes it to relevant weather and
event risks. Partly offsetting this risk is the company's
diversification into different crops in Argentina. In 2017
Adecoagro generated $933 million in sales of which 65% from sugar,
ethanol and energy sales; 16% from soybeans, corn, wheat,
sunflower and others; 11% from rice; and 4% from the dairy
business. This segmental diversity helps to mitigate negative
sales and margin impacts stemming from each specific segments.
Still, given the relevance of the sugar-ethanol segment, the
company's credit quality is highly correlated to the performance
of such business.

Other constraints are its small scale, considering annual revenues
as compared to global peers, and its country risk exposure to
Brazil and Argentina. Because of the importance of the
agricultural sector to these economies, the political environment
may influence demand, supply, prices and costs. Recently, a
deteriorating fiscal environment in Argentina led to the
implementation of export taxes that impacted soybeans and all
other agriculture commodities. Despite these measures the
fundamentals of the agricultural sector in Argentina remain
positive, given its natural competitive advantages such as land
and water availability, favorable weather, adequate soils, and an
overall low marginal production cost. For exporters, in the short-
term, the taxes will be compensated by the depreciation of the
Argentinean Peso, since commodities are mostly traded in US
dollars while most cost are denominated in local currency.

As of June 2018, the seasonal peak of working capital needs,
Adecoagro's cash position of $145 million covered short-term debt
by 1.0x. The company also has $105 million in readily marketable
inventories (RMI). The company's average term of debt is of 7
years, with short-term lines related to working capital.
Adecoagro's leverage was at 2.4x in the LTM ended June 2018 and
Moody's estimates it will remain in a range of 2.5x to 3.0x in the
next 12 to 18 months.

Rating Outlook

The stable outlook reflects its expectation that Adecoagro will
continue to benefit from an increasing sugarcane crushing capacity
providing continuous cost dilution, despite a low global sugar
price environment. It also incorporates that Adecoagro will pursue
its expansion investments without jeopardizing its adequate
liquidity and leverage.

Upgrade Triggers

An upgrade would require increased production diversification,
sustained free cash flow generation and an improvement in
liquidity profile, with a cash balance that consistently covers
its short-term obligations. Quantitatively an upgrade would
require Debt/EBITDA below 2.0x and EBITA/Interest Expense above

Despite a relevant export element in Adecoagro's sales and price
environment, its operations are highly reliant on the local
dynamics. Accordingly, the company's rating could be impacted by a
rating actions on Brazil.

Downgrade Triggers

The ratings could be downgraded in case of a deterioration in the
company's liquidity profile, profitability or credit metrics.
Quantitatively, a downgrade could happen if Debt/EBITDA remains
above 3.5x or EBITA/Interest Expense remains below 2.0x.
Adecoagro S.A., the group's ultimate parent company, is
headquartered in Luxembourg and it generated sales of $910 million
for the last twelve months ending June 30, 2018. An average of 77%
of these sales were generated by the Brazilian operations in the
last three years. The company is primarily engaged in agricultural
and agro-industrial activities into three segments: (i) sugar-
ethanol and energy, mainly in Brazil; (ii) farming, including the
production and commercialization of soy, corn, wheat, rice, dairy
and others, and (iii) land transformation. In the LTM the
company's consolidated EBITDA reached $348 million with a margin
of 38.3%.

The principal methodology used in these ratings was Global Protein
and Agriculture Industry published in June 2017.

Moody's America Latina Ltda. has placed the Ba2 global scale and national scale corporate family ratings and Ba3 global
scale and national scale senior unsecured ratings of
Ecorodovias Concessoes e Servicos S.A. under review for downgrade.


The rating actions relate to the federal investigations conducted
by Brazil's Federal Prosecution Service (Ministerio Public Federal
-- MPF) in conjunction with the Federal Police (Policia Federal)
which resulted in the arrest of two senior employees of the
company's toll road subsidiaries and the search and seizure of
documents. The federal investigation is entitled "Operacao
Integracao". The investigations relate to allegations of potential
briberies to government employees in return for favored
contractual conditions and/or amendments related to toll road
concessions in the State of Parana.

Ecorodovias owns and operates two toll road concessions in the
state: Concessionaria Ecovia Caminho do Mar S.A. and Rodovia das
Cataratas S.A. -- Ecocataratas (Ecocataratas). Ecovia was
originally awarded in 1997, for a stretch of 136.7 km connecting
the state capital Curitiba to the Port of Paranagua, and is set to
expire in November 2021. Ecocataratas was also awarded in 1997,
for a stretch of 387,1 km connecting the central region of the
state to the city of Foz do Iguacu, and is also set to expire in
November 2021.

The investigations affect the company's reputation and can result
in heightened refinancing risks and substantial fines. As of June
2018, the company maintained a consolidated cash position of
approximately BRL1.1 billion and short term maturities of
approximately BRL1.2 billion. Although the timing and legal
outcome of the on-going investigations is difficult to predict,
this review will focus on the development of the investigations
and potential impact on leverage and liquidity.


The ratings can be downgraded by multiple notches upon erosion of
the company's cash position and/or a perception of increased
refinancing risks as the date of important debt maturities
approaches, mostly scheduled to occur in the second quarter 2019.
The rating can also be downgraded by multiple notches upon an
actual conviction or assumption of guilt leading to the
application of fines that affect the company's leverage profile.

A positive rating action is unlikely at this time. The rating can
be confirmed upon dismissal of allegations and
repayment/refinancing of relevant short term debt maturities.

ECO C&S manages 2,602 km of toll roads through nine concessions
with an average remaining life of twelve years. In the last twelve
months ended June 2018 the company generated BRL2.4 billion in net
revenues (excluding construction revenues) and EBITDA of BRL1.8
billion after Moody's standard adjustments, resulting in Debt to
EBITDA of 3.1x and FFO to Debt of 21.4%, respectively. ECO C&S is
a subholding company created to consolidate the operational toll
road business under Ecorodovias Infraestrutura e Logistica S.A.
(ECO I&L), the owner of 100% of its shares. ECO I&L is in turn
controlled by the CR Almeida Group and Italy-based Gavio Group.

The principal methodology used in these ratings was Privately
Managed Toll Roads published in October 2017.

D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: 3 Power Plants Coming to Ease Energy Crunch
Dominican Today reports that administrative minister Jose Ramon
Peralta said three gas-fired 33-megawatt power plants will arrive
in the country from Puerto Rico, which could be operating in 30
days, which will guarantee electricity when the plants are taken
off line on for maintenance.

"The good news that they gave us is that three 33-megawatt gas
plants are coming from Puerto Rico this week, which will be
operational in 30 days," the official said on CDN, Channel 37,
according to Dominican Today.

He said that from late October to early Nov., AES Andres will have
gone from 110 to 230 MW and would be in full capacity in February,
the report notes.

The official said that during president Danilo Medina's visit to
the UN, American investors expressed their interest in the Punta
Catalina power plant, "because there has been talk of wanting to
offer 50 percent of Punta Catalina," the report relays.

The report discloses that Mr. Peralta added that Punta Catalina
will start operating in October, "between October and December
will be synchronized and from December 40 MW will begin to enter
the system, so that in February one of the turbines will be
generating more than 300 MW and the entrance will be felt. "

As reported in the Troubled Company Reporter-Latin America on
Sept. 24, 2018, Fitch Ratings has affirmed Dominican Republic's
Long-Term, Foreign-Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Outlook.

DOMINICAN REPUBLIC: Will Allocate US$580MM for Electricity Subsidy
Dominican Today reports that the government of the Dominican
Republic will allocate RD$28.7 billion (US$580.0 million) to
subsidize the electricity sector next year, as stated in the 2019
Budget, submitted to the Senate by Finance minister Donald

In his letter to the Senate with the proposed initiative,
president Danilo Medina includes Customs revenues of RD$161.0
billion, RD$490.0 billion from Internal Taxes and RD$35.0 billion
from the National Treasury, according to Dominican Today.

As reported in the Troubled Company Reporter-Latin America on
Sept. 24, 2018, Fitch Ratings has affirmed Dominican Republic's
Long-Term, Foreign-Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Outlook.


BANORTE BNTECB 07-2: Moody's Puts Ba3 on Sub. Certs on Review
Moody's de Mexico S.A. de C.V. has placed on review for downgrade
the ratings of Banorte - BNTECB 07 and Banorte - BNTECB 07-2
issued in connection with a Mexican collateralized loan obligation
securitization sponsored by Banco Mercantil del Norte, S.A.

The complete rating action is as follows:

BNTECB 07 Senior Certificates: the ratings of Baa3 (sf) (Global
Scale, Local Currency) and (sf) (Mexican National Scale)
were placed on review for possible downgrade.

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

Interest and principal payments to certificate holders are backed
by cash flows received from a portfolio of securitized loans
granted to Mexican states, municipalities and related
decentralized entities, and originated by Banorte (LT bank deposit
local currency A3/ Most of the loans are backed by
revenues that states and municipalities receive directly from the
federal government (federal participation revenues). The loans
have been assigned to a trust established in accordance with
Mexican law.

Originator: Banco Mercantil del Norte, S.A.

Trustee: CIBanco, S.A., Institucion de Banca Multiple, Fiduc.


Moody's has placed the ratings of the affected certificates on
review for possible downgrade due to considerations pertaining to
the credit quality of loans granted to the state of Baja
California. On September 11, 2018, Moody's downgraded Baja
California's issuer ratings to B1/ from Ba3/,
reflecting the state's recurring consolidated deficits and
significant cash financing needs, which continue to put pressure
on its liquidity metrics. The state of Baja California is the
fifth largest obligor in this transaction, accounting for 13.9% of
the total loan pool.

During the review period, Moody's will assess the impact of Baja
California's weaker credit profile on the quality of the state's
loans that form part of the collateral. Moody's will also assess
the rating impact of any deterioration in the pool's credit
quality. Consistent with "Moody's Global Approach to Rating
Collateralized Loan Obligations" published in August 2017, in
updating its assessment of the collateral's credit quality,
Moody's takes into account a credit measure for each underlying
loan, including either a credit rating or a credit estimate.
Credit estimates are unpublished point-in-time opinions of the
approximate credit quality of an individual security, financial
contract, or issuer for which no Moody's credit rating exists.

The BNTECB 07 Senior certificates have a target size equal to 94%
of the pool balance excluding defaulted loans. As of August 2018,
the total credit enhancement for BNTECB 07 was 6.2%, composed of
2% of subordination and 4.2% of overcollateralization. The BNTECB
07-2 Subordinate certificates are subordinate to the BNTECB 07
certificates and have a target size equal to 2% of the pool
balance excluding defaulted loans. The subordinate certificates
currently have 4.2% of credit enhancement in the form of
overcollateralization. The overcollateralization level has
remained at 4.2% as a percent of total loan balance over the last
few years.

Moody's ratings also reflect the role of Banorte as collateral
manager, as well as the availability of a fully funded cash
reserve whose holdings are equivalent to one coupon payment. These
factors mitigate the liquidity risks associated with this
transaction's dual waterfall structure. As of August 2018, the
interest coverage ratio over the previous 12 months averaged
1.13x. Moody's notes that the transaction has demonstrated a
consistently strong payment history since closing, with no
reported delinquencies since the deal closed in 2007. According to
the collateral manager report as of August 2018, all of the loans
were current.

The loan portfolio, comprised of 22 loans to eight obligors, is
relatively concentrated. The largest obligor concentration is
20.4% and the lowest is 0.4% of the total pool balance. The three
largest loans account for 56.1% while the top five loans account
for 73.5% of the total pool balance. As of July 2018, the pool's
weighted average remaining life was 11.75 years and the weighted
average interest rate borne by the loans was 8.81%.

The BNTECB 07 Senior Certificates and the BNTECB 07-2 Subordinate
Certificates pay interest monthly and have a legal final maturity
date on May 15, 2037. However, if the total target credit
enhancement is not met by the coupon date, the certificates will
receive principal payments until the minimum credit enhancement
has been met. As of August 2018, both certificates, which have
been paying pro rata since issuance, had been paid down by 51.8%
of the original amounts.

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

Moody's assessed the servicer's practices and considers them

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

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

Factors that would lead to an upgrade of the ratings:

  - In case of prepayment of a loan, use of proceeds from
prepayment for early amortization of certificates.

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

Factors that would lead to a downgrade of the ratings:

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

  - A decline in total collections.

  - A deterioration in the interest coverage ratio or
overcollateralization metrics.

OFFSHORE DRILLING: Fitch Affirms CC LT Issuer Default Ratings
Fitch Ratings has affirmed Offshore Drilling Holding, S.A.'s Long-
Term Foreign and Local Currency Issuer Default Ratings (IDRs) at
'CC'. Fitch has also affirmed the company's USD950 million of
senior secured notes due 2020 at 'CC'/'RR4'.

ODH's ratings reflect the likelihood that the company will cease
or interrupt payments in the future given that its cash flow from
operations has been compromised, although it is currently meeting
its obligations on a timely basis. The Recovery Rating of 'RR4'
assigned to ODH's senior secured notes reflects Fitch's
expectations of an average recovery of between 31% and 50% given
default as a result of the company's assets' reduced cash flow
generation potential.


Expected Restructuring: Fitch views a debt restructuring as very
likely in the medium term given ODH's pressured cash flow
generation. Fitch believes it will be very difficult for the
company to be awarded new contracts in the short term under
current market conditions for offshore drilling and that any
potential award should come at insufficiently low day rates that
will not support the current debt level. Under its base case
scenario, Fitch estimates ODH will be able to re-contract one
currently uncontracted ultra-deep-water-drilling rig in 2H19 at a
day rate of USD150,000, which, together with cash on hand, may
generate enough cash flow to cover interest expense.

Irrecoverable Capital Structure: Fitch expects ODH's leverage as
measured by total debt to EBITDA for 2018 to be 11.0x, which is in
line with 2017, and to remain elevated for the next three years.
ODH will likely need to restructure since cash flow from
operations (CFFO) will not be sufficient to fully amortize the
senior secured notes due in 2020, and the company's access to debt
capital markets is uncertain.

Liquidity Risk Temporarily Alleviated: ODH's liquidity is now
adequate as a result of the recent settlement agreement with PEMEX
(BBB+/Stable) for USD230 million. Fitch expects the company to use
this amount to cover the USD160 million of interest expense until
the maturity of the notes in September 2020, but this is not a
requirement under the notes' indenture. Fixed costs include opex
requirement for uncontracted rigs reaching USD1 million per month
and a five-year major maintenance project (dry docking), which may
range from USD20 million to USD30 million per unit. Fitch
estimates the company will spend around USD80 million on capex
from 2018 to 2022. In September 2018, PEMEX early terminated two
charter agreements concerning Bicentenario and Centenario. Only La
Muralla IV remains contracted through 2021 at a current day rate
of USD350,000 until April 2019 and a to be determined day rate

Partial Structural Subordination: ODH's senior secured notes are
guaranteed by the unencumbered restricted subsidiaries that own
the Centenario and Bicentenario drilling rigs and are structurally
subordinated to a project-finance bank loan due in June 2020 of
approximately USD150 million, as of June 30, 2018, related to the
financing of the La Muralla IV rig. This bank debt has certain
cash-sweep provisions restricting cash flow distributions to ODH.
The bank loan amortizes through 2018, and once repaid La Muralla
IV will become a co-guarantor for the notes. The company's tight
debt amortization profile remains at risk. As of June 30, 2018,
cash and cash equivalents totalled USD6.0 million with another
USD40 million in the interest reserve account. Short-term debt was
USD141.8 million, and total debt was USD1.4 billion.

Increasing Competition: Investment opportunities are opening up
competition in the oil sector with various rigs re-entering the
marketplace. The recent deep-water oil blocks awarded in Mexico
are bringing back various players into the market and increasing
demand for rigs operators through the end of 2020 when exploration
for oil block concessions will expire. Nevertheless, oil producers
will likely favor long-term relationship with drill suppliers
offering very competitive prices. While ODH benefits from a
competitive position in the Mexican market and good relationship
with its off-taker Petroleos Mexicanos (PEMEX), the recent
consolidation in the global oilfield services sector has weakened
the company's competitive position in an evolving industry that
favors larger players.


ODH's business risk is similar to other peers in the deteriorated
drilling services environment such as QGOG Constellation' (RD) in
Brazil and China-based Anton Oilfield Services Group (B-/Stable).
ODH is rated two notches above QGOG, which has missed interest
payment on its notes after the 30-day grace period. Anton is rated
two notches above ODH due to the completion of the company's new
USD300 million 2020 bond issuance, alleviating the refinancing
burden for its existing bonds.


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

  -- La Muralla IV remains contracted at the existing day rate of

  -- One of the other two rigs is re-contracted in 2H19 at a day
     rate of $150,000.

  -- Regular maintenance capex of approximately $80 million during
     the next four years.


  -- The recovery analysis assumes that ODH would be considered a
     going-concern in bankruptcy and that the company would be
     reorganized rather than liquidated.

  -- Fitch has assumed 10% of value is allocated for
     administrative claims.

Going-Concern Approach

  -- ODH's going concern EBITDA is based on 2017 EBITDA without a
discount as the company's cash flow generation has been severely
stressed by the industry downturn and current cash flow is
considered distress.

  -- 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.

  -- An EV multiple of 5x is used to calculate a post-
reorganization valuation and reflects a mid-cycle multiple. The
estimate considered the following factors:

  -- All ODH's debt is secured with different collateral. The
USD950 million notes are secured by interest in Centenario and
Bicentenario. Bank loans are secured by La Muralla IV or the
recently acquired Jack-Ups.


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

No positive rating actions are currently contemplated over the
near term given the expectations of low cash flow generation and
Fitch's projections for leverage that exceeds through-the-cycle

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

A negative rating action may be considered if ODH announces a debt
restructuring that materially reduces terms in comparison with
original terms or fails to timely pay interest or principal of an
obligation due in accordance with its terms.


Fitch has affirmed ODH's ratings as follows:

  -- Foreign and local currency IDRs at 'CC';

  -- Senior secured notes at 'CC'/'RR4'.

T R I N I D A D  &  T O B A G O

PETROLEUM CO: Energy Chamber Meets With Transition Team
Trinidad Express reports that the Energy Chamber met earlier with
members of the Petroleum Co. of Trinidad & Tobago (Petrotrin)
transition team to discuss the impending closure of the refinery
and new opportunities with the refocused exploration and
production company and the terminal operations.

Service companies and contractors, that are members of the Energy
Chamber, had a chance to discuss the process of shutting down the
refinery, possible business opportunities and how they should do
business with the new Petrotrin, according to Trinidad Express.

As reported in the Troubled Company Reporter-Latin America on
Sept. 28, 2018, Moody's Investors Service placed Petroleum Co. of
Trinidad & Tobago's B1 corporate family rating and senior
unsecured debt ratings on review for downgrade. This rating action
was based on the lack of clarity regarding Petrotrin's new
business profile and strategy as well as increasing liquidity risk
related to the approaching maturity of the 2019 bonds.


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


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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