TCRLA_Public/181015.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

               Monday, October 15, 2018, Vol. 19, No. 204


                            Headlines



B R A Z I L

A.I. CANDELARIA: S&P Rates New $650MM Sr. Secured Notes 'BB-'
CONCESSIONARIA DE RODOVIAS: Moody's Puts Ba2 CFR for Downgrade
JBS SA: Discloses Cash Tender Offers and Consent Solicitation
JBS SA: S&P Hikes Global Scale ICR to 'BB-', Outlook Positive
ODEBRECHT SA: Punta Catalina Power Plant Undergoes First Test Run

SANTA CATARINA: Fitch Affirms BB- LT IDR, Outlook Stable


C H I L E

EMPRESA ELECTRICA II: Moody's Rates $725MM Sec. Notes Due 2034 Ba1


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: 25 % of Rum Sold Doesn't Pay Taxes
DOMINICAN REPUBLIC: Embraces Competitiveness on Exports


J A M A I C A

DIGICEL GROUP: Launches Suit Against Surinamese Regulator


X X X X X X X X X

* BOND PRICING: For the Week October 8 to October 12, 2018


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B R A Z I L
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A.I. CANDELARIA: S&P Rates New $650MM Sr. Secured Notes 'BB-'
-------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating to A.I.
Candelaria Spain's (Candelaria) proposed senior secured notes for
up to $650 million.

The rating on Candelaria's new senior secured notes incorporates
the share pledge that consists of 100% of its equity interests in
OCENSA, and no additional debt at the level of Candelaria. S&P
expects Candelaria to use the proceeds of the issuance to fund the
debt service reserve account of this issuance, repay the existing
senior secured loan at its parent A.I. Candelaria Luxemburg (not
rated), and to pay an extraordinary dividend to the A.I.
Candelaria Luxemburg shareholders.

Candelaria is a Spain-based holding company with the sole purpose
of owning a 22.352% non-controlling stake in Oleoducto Central
S.A. (OCENSA; BBB-/Stable/--). OCENSA owns and operates Colombia's
main crude oil pipeline that extends from the Llanos and Magdalena
basins to the port of Covenas, a crude oil export facility.
Colombia-based oil and gas company Ecopetrol S.A. (BBB-/Stable/--)
controls OCENSA through a 72.6% stake.

The 'BB-' issue-level rating mainly incorporates Candelaria's
reliance on dividend payments from OCENSA, which will distribute
them after covering its operating and financial needs. S&P said,
"In addition, given that OCENSA is not publicly traded, it might
be difficult for Candelaria to liquidate its investments, if
needed, and for us to forecast asset valuations relative to debt
with certainty. On the other hand, we expect the dividends that
Candelaria receives from OCENSA to be stable and more than
sufficient to cover its operating and financial expenses. OCENSA's
cash flows are stable because its main offtakers are strong
counterparties. Additionally, we have a favorable view of
Colombia's regulatory framework for the energy industry." These
factors enable OCENSA to achieve high and stable EBITDA margins of
slightly more than 80%. In addition, OCENSA is currently
underleveraged and doesn't have significant capital expenditures
(capex) in the upcoming years. Moreover, OCENSA's shareholders'
agreement with Ecopetrol provides Candelaria with effective veto
rights on all of OCENSA's major corporate decisions, such as
investments, debt issuances, and dividend policy, currently at
100% of net income.

As noted above, Candelaria has announced that it intends to issue
senior secured notes for up to $650 million. S&P said, "We also
expect dividend flows from OCENSA to Candelaria to range between
$135 million and $155 million for the next two years, which may
allow the latter to meet operating and financial expenses of about
$45 million. We also expect Candelaria to distribute all of its
excess cash to its parent company, leaving a minimum of
approximately $30 million in its debt service reserve account.
Therefore, we expect Candelaria's interest coverage ratio to be at
3.5x-4.0x and net debt leverage at approximately 4.0x. If
financial metrics are weaker-than-expected, resulting in an
interest coverage ratio below 3.0x while net leverage remains
above 4.0x, we could lower Candelaria's issue-level rating in the
next 18 months. We could also lower our issue-level rating on
Candelaria if we downgrade OCENSA, which we currently view as
unlikely given the stable outlook."


CONCESSIONARIA DE RODOVIAS: Moody's Puts Ba2 CFR for Downgrade
--------------------------------------------------------------
Moody's America Latina Ltda., has placed the Ba2 global scale and
Aa3.br national scale corporate family ratings and backed senior
unsecured ratings of Concessionaria de Rodovias Integradas do
Oeste S.A. (SPVias) under review for downgrade. Moody's has also
placed the Ba2 global scale and Aa1.br national scale corporate
family ratings, senior unsecured and backed senior unsecured
ratings of Concessionaria do Sistema Anhanguera-Bandeirantes S.A.
Autoban under review for downgrade.

The rating actions follow the one from September 28, 2018 that
placed the ratings of CCR S.A. (CCR, Ba2 RUR-down), SPVias' and
AutoBAn's parent company, under review for downgrade.

RATINGS RATIONALE

The rating actions relate to the existence of automatic early
amortization clauses embedded on SPVias' 4th issuance of
debentures and AutoBAn's 8th issuance of debentures that are
associated with the credit profile of CCR, as the guarantor of the
debentures. As such the ratings of SPVias and AutoBAn are direct
linked to those of CCR.

On a standalone basis, SPVias carries stable credit metrics and
adequate liquidity despite some recent challenges. About 70% of
the company's traffic profile is concentrated on heavy vehicles.
In the first half of 2018, traffic volume at SPVias has decreased
1.1% compared to the same period in 2017, impacted mainly by the
truck driver's strike. In 2017, SPVias credit metrics have been
negatively affected by non-recurring tax expenses of approximately
BRL147 million. Excluding this effect, the credit metrics for this
company have been relatively stable supported by predictable cash
flows from its mature toll road concession, with strong asset
fundaments and remaining life of approximately 10 years. Moody's
calculates SPVias' Net Debt-to-EBITDA in the range of 3.6x to 3.9x
and the FFO-to-Debt in the range of 11% to 13%, on a recurring
base since 2014. In August 2018, SPVias completed a liability
management strategy with the issuance of BRL1.1 billion debentures
with final maturity in 2022, which improved its liquidity cushion
and reduced short-term refinancing risk. On the other hand,
uncertainties about the 2006 contract amendment weighs on the
ratings, due to the risks associated to a negative ruling on the
judicial dispute with ARTESP.

AutoBAn's standalone credit profile has been largely underpinned
by the superior asset features of its road system located in a
well-developed and economically diversified region in the State of
Sao Paulo (Ba2 stable), which translates into stronger than
average credit metrics compared to local peers. AutoBAn's traffic
profile is composed by approximately 54% of commercial vehicles
and 46% of light vehicles. The trucker's strike also affected the
company's performance in the first half of 2018, with a decline of
0.8% in volume compared to the same period in 2017; however,
credit metrics remained robust. Moody's calculates AutoBAn's Net
Debt-to-EBITDA of 1.7x, as of the last twelve months ended June
30, 2018, while the FFO-to-Debt was at 41%. On the other hand,
uncertainties about the 2006 contract amendment weighs on the
ratings, due to the risks associated to a negative ruling on the
judicial dispute with ARTESP.

Moody's review of SPVias' and AutoBAn's ratings for downgrade will
consider the review of CCR, which will take into consideration the
company's ability to maintain an adequate liquidity position to
cover upcoming debt maturities and planned capital spending
programs.

WHAT COULD CHANGE THE RATINGS UP/DOWN

The ratings of SPVias and AutoBAn can be downgraded upon a
downgrade on the ratings of its parent company, CCR. A positive
rating action is unlikely at this time. The ratings can be
confirmed upon CCR S.A.'s ratings confirmation.

SPVias and AutoBAn are operating subsidiaries of CCR, the holding
company of one of Brazil's largest infrastructure concession
groups, with 3,265 km of managed toll roads. CCR is controlled by
a consortium formed by Andrade Gutierrez Concessoes S.A., Camargo
Correa Group and Soares Penido Group Concessoes, with a combined
participation of 44.77%; the remaining 55.23% of shares are in
free float.

SPVias holds a 28-year concession granted in 2000 to operate and
maintain the 516 kilometer (km) Castello Branco-Raposo Tavares
road system, as well as the Joao Mellao, Antonio Romano
Schincariol and Francisco Alves Negrao roads, connecting the city
of Sao Paulo to the southwestern region of the state, and to the
states of Mato Grosso do Sul and Parana. SPVias' concession was
acquired by CCR in 2010 and accounts for about 8% of CCR's
consolidated net operating revenues and EBITDA.

AutoBAn holds a 29-year concession granted in 1998 to expand,
operate and maintain the 317-kilometer Anhanguera-Bandeirantes
road system, which was extended for another, until 2027. The road
system comprises the AnhangĂ…era (SP-330), Bandeirantes (SP-348),
and Dom Gabriel Paulino Bueno Couto (SP-300) highways, and the
Adalberto Panzan (SPI-102/330) connector. AutoBAn's system
connects the Sao Paulo metropolitan area to the wealthy cities of
Campinas, Jundiai and Limeira. AutoBAn accounts for about 23% of
CCR's consolidated net operating revenues and 30% of the parent's
EBITDA.


JBS SA: Discloses Cash Tender Offers and Consent Solicitation
-------------------------------------------------------------
JBS S.A. disclosed that its wholly-owned subsidiaries, JBS
Investments GmbH ("JBS Investments") and JBS USA Food Company
("JBS USA Food"), have commenced cash tender offers (the "Tender
Offers") for (i) any and all of the outstanding U.S.$1,000,000,000
aggregate principal amount of 7.750% Senior Notes due 2020 of JBS
Investments (the "2020 Notes") and (ii) up to U.S.$500,000,000
(the "Maximum Tender Amount") of the outstanding
U.S.$1,150,000,000 aggregate principal amount of 7.250% Senior
Notes due 2021 of JBS USA Food, JBS USA Lux S.A. (formerly JBS
USA, LLC) and JBS USA Finance, Inc. (the "2021 Notes" and together
with the 2020 Notes, the "Notes"), respectively.

In conjunction with the Tender Offer for the 2020 Notes, JBS
Investments is also soliciting consents (the "2020 Notes Consent
Solicitation") from the holders of the 2020 Notes for the adoption
of proposed amendments (the "Proposed Amendments") which would (i)
eliminate substantially all of the restrictive covenants and
certain events of default and related provisions contained in the
applicable indenture governing the 2020 Notes and (ii) reduce the
minimum required notice period for the redemption of 2020 Notes
from 30 days to three days prior to the date fixed for redemption.

The Tender Offers and the 2020 Notes Consent Solicitation are
being made pursuant to an Offer to Purchase and Consent
Solicitation Statement, dated October 12, 2018, and the related
Letter of Transmittal and Consent, which contain detailed
information concerning the terms of the Tender Offers and the 2020
Notes Consent Solicitation (together, as may be amended or
supplemented, the "Offer Documents").

Holders who tender 2020 Notes must also consent to the Proposed
Amendments to the indenture governing the 2020 Notes.  Holders of
2020 Notes may not deliver consents to the Proposed Amendments
without validly tendering the 2020 Notes in the Tender Offer for
the 2020 Notes and may not revoke their consents without
withdrawing the previously tendered 2020 Notes to which they
relate. The Proposed Amendments will be set forth in a
supplemental indenture relating to the 2020 Notes and are
described in more detail in the Offer Documents. Adoption of the
Proposed Amendments requires the delivery of consents by holders
of 2020 Notes of a majority of the aggregate outstanding principal
amount of 2020 Notes (not including any 2020 Notes which are owned
by JBS or any of its affiliates).

The deadline for holders to validly tender Notes and deliver
consents and be eligible to receive payment of the Total
Consideration (as defined below), which includes the Early Tender
Payment (as defined below), will be 5:00 p.m., New York City time,
on October 25, 2018, unless extended or earlier terminated by JBS
Investments or JBS USA Food, as applicable (such date and time, as
the same may be modified, the "Early Tender Payment Deadline").
The Tender Offers will expire at 11:59 PM, New York City time, on
November 8, 2018, unless extended or earlier terminated by JBS
Investments or JBS USA Food, as applicable (such date and time, as
the same may be modified, the "Expiration Time"). 2020 Notes
tendered may be withdrawn and consents for the Proposed Amendments
delivered may be revoked at any time prior to the execution of the
supplemental indenture (the date and time of such execution and
delivery, the "2020 Notes Withdrawal Deadline"), but not
thereafter, unless required by applicable law.  2021 Notes
tendered may be withdrawn at any time prior to the Early Tender
Payment Deadline (the "2021 Notes Withdrawal Deadline" and
together with the 2020 Notes Withdrawal Deadline, the "Withdrawal
Deadline"), but not thereafter, unless required by applicable law.

The total consideration payable to 2020 Notes Holders for each
U.S.$1,000 principal amount of 2020 Notes validly tendered and
purchased pursuant to the 2020 Notes Tender Offer will be
U.S.$1,023.13 (the "2020 Notes Total Consideration"). The 2020
Notes Total Consideration includes an early tender payment of
U.S.$30.00 per U.S.$1,000 principal amount of 2020 Notes (the
"2020 Notes Early Tender Payment") payable only to 2020 Notes
Holders who validly tender (and do not withdraw) their 2020 Notes
and validly deliver (and do not revoke) the related 2020 Notes
consents at or prior to the Early Tender Payment Deadline. 2020
Notes Holders who validly tender (and do not withdraw) their 2020
Notes after the Early Tender Payment Deadline but at or prior to
the Expiration Time will be eligible to receive U.S.$993.13 per
U.S.$1,000 principal amount of 2020 Notes (the "2020 Notes Tender
Offer Consideration"), which amount will be equal to the 2020
Notes Total Consideration less the 2020 Notes Early Tender
Payment. In addition, JBS Investments will pay accrued and unpaid
interest on the principal amount of 2020 Notes accepted for
purchase from the most recent interest payment date on the 2020
Notes to, but not including, the applicable settlement date for
such 2020 Notes (the "2020 Notes Accrued Interest").  Payment in
cash of an amount equal to the 2020 Notes Total Consideration,
plus 2020 Notes Accrued Interest, for such accepted 2020 Notes
will be made on the 2020 Notes early settlement date, which is
expected to be one business day after the Early Tender Payment
Deadline, which is currently expected to be October 26, 2018.

The total consideration payable to 2021 Notes Holders for each
U.S.$1,000 principal amount of 2021 Notes validly tendered and
purchased pursuant to the 2021 Notes Tender Offer will be
U.S.$1,013.75 (the "2021 Notes Total Consideration", and together
with the 2020 Notes Total Consideration, the "Total
Consideration"). The 2021 Notes Total Consideration includes an
early tender payment of U.S.$30.00 per U.S.$1,000 principal amount
of 2021 Notes (the "2021 Notes Early Tender Payment", and together
with the 2020 Notes Early Tender Payment, the "Early Tender
Payment") payable only to 2021 Notes Holders who validly tender
(and do not withdraw) their 2021 Notes at or prior to the Early
Tender Payment Deadline. 2021 Notes Holders who validly tender
(and do not withdraw) their 2021 Notes after the Early Tender
Payment Deadline but at or prior to the Expiration Time will be
eligible to receive U.S.$983.75 per U.S.$1,000 principal amount of
2021 Notes (the "2021 Notes Tender Offer Consideration", and
together with the 2020 Notes Tender Offer Consideration, the
"Tender Offer Consideration"), which amount will be equal to the
2021 Notes Total Consideration less the 2021 Notes Early Tender
Payment. In addition, JBS USA Food will pay accrued and unpaid
interest on the principal amount of 2021 Notes accepted for
purchase from the most recent interest payment date on the 2021
Notes to, but not including, the applicable settlement date for
such 2021 Notes (the "2021 Notes Accrued Interest", and together
with the 2020 Notes Accrued Interest, the "Accrued Interest").
Payment in cash of an amount equal to the 2021 Notes Total
Consideration, plus 2021 Notes Accrued Interest, for such accepted
2021 Notes will be made on the 2021 Notes early settlement date,
which is expected to be two business days after the Early Tender
Payment Deadline, which is currently expected to be October 29,
2018. If 2021 Notes are validly tendered in an aggregate principal
amount in excess of the Maximum Tender Amount pursuant to the 2021
Notes Tender Offer, such tendered 2021 Notes will be subject to
proration (as described in the Offer Documents).

The obligations of JBS Investments and JBS USA Food to accept for
purchase, and to pay for, Notes validly tendered and not validly
withdrawn pursuant to the Tender Offers are conditioned upon the
satisfaction or, when applicable, waiver of certain conditions,
which are more fully described in the Offer Documents, including,
among others, a financing condition applicable to the 2020 Notes
Tender Offer and 2020 Notes Consent Solicitation as described in
the Offer Documents. In addition, subject to applicable law, JBS
Investment and JBS USA Food, as applicable, reserve the right, in
their sole discretion, to (i) extend, terminate or withdraw the
Tender Offers or the 2020 Notes Consent Solicitation at any time
or (ii) otherwise amend the Tender Offers or the 2020 Notes
Consent Solicitation in any respect at any time and from time to
time. JBS Investments and JBS USA Food, as applicable, further
reserve the right, in their sole discretion, not to accept any
tenders of Notes or deliveries of consents with respect to the
2020 Notes. JBS Investments and JBS USA Food are making the Tender
Offers and the Consent Solicitation only in those jurisdictions
where it is legal to do so.

Barclays Capital Inc., Banco Bradesco BBI S.A., Banco BTG Pactual
S.A.- Cayman Branch, BB Securities Limited and Santander
Investment Securities Inc. are acting as dealer managers for the
Tender Offers and the solicitation agents for the 2020 Notes
Consent Solicitation and can be contacted at their telephone
numbers set forth on the back cover page of Offer to Purchase and
Consent Solicitation Statement with questions regarding the Tender
Offers and the 2020 Notes Consent Solicitation.

Copies of the Offer Documents are available to holders of Notes
from D.F. King & Co., Inc., the information agent and the tender
agent for the Tender Offers and the 2020 Notes Consent
Solicitation.  Requests for copies of the Offer Documents should
be directed to D.F. King at (877) 283-0323 (toll free), (212) 269-
5550 (collect) or jbs@dfking.com.

Neither the Offer Documents nor any related documents have been
filed with the U.S. Securities and Exchange Commission, nor have
any such documents been filed with or reviewed by any federal or
state securities commission or regulatory authority of any
country. No authority has passed upon the accuracy or adequacy of
the Offer Documents or any related documents, and it is unlawful
and may be a criminal offense to make any representation to the
contrary.

The Tender Offers and the 2020 Notes Consent Solicitation are
being made solely on the terms and conditions set forth in the
Offer Documents. Under no circumstances shall this press release
constitute an offer to buy or the solicitation of an offer to sell
the Notes or any other securities of JBS or any of its
subsidiaries, including JBS Investments and JBS USA Food. The
Tender Offers and the 2020 Notes Consent Solicitation are not
being made to, nor will JBS accept tenders of Notes or accept
deliveries of 2020 Notes Consents from, holders in any
jurisdiction in which the Tender Offers and the 2020 Notes Consent
Solicitation or the acceptance thereof would not be in compliance
with the securities of blue sky laws of such jurisdiction. This
press release also is not a solicitation of consents to the
Proposed Amendments to the indenture governing the 2020 Notes. No
recommendation is made as to whether holders should tender their
Notes or deliver their consents with respect to the 2020 Notes.
Holders should carefully read the Offer Documents because they
contain important information, including the various terms and
conditions of the Tender Offers and the 2020 Notes Consent
Solicitation.


JBS SA: S&P Hikes Global Scale ICR to 'BB-', Outlook Positive
-------------------------------------------------------------
S&P Global Ratings raised its global scale issuer credit ratings
on JBS S.A. (JBS) and JBS USA Lux S.A. to 'BB-' from 'B+'. In
addition, S&P raised its national scale rating on JBS to 'brAA+'
from 'brAA'. S&P also raised the senior unsecured debt ratings on
JBS and JBS USA to 'BB-' from 'B+' and the senior secured debt
ratings on JBS USA to 'BB+' from 'BB'. The outlook on the
corporate credit ratings is positive.

All recovery ratings remain unchanged. The recovery rating of '1'
on JBS USA's senior secured debt reflects very high (95%) recovery
expectations. The recovery rating of '3' on JBS USA's senior
unsecured debt reflects meaningful (65%) recovery expectations.
And the recovery rating of '4' on JBS's senior unsecured debt
reflects average (40%) recovery expectations.

S&P said, "The upgrade reflects our view that JBS will maintain
its current prudent approach to liquidity by extending its debt
maturity profile and reducing gross debt through its solid cash
position and cash flow generation, as seen in the recent
prepayment of R$2 billion of bank debt due 2019 and 2020.

"We still believe potential contingent liabilities or unfavorable
developments in the ongoing corruption investigations of the
company could pose risks for its access to capital and credit
markets. However, we believe these risks have recently diminished,
given that JBS is likely to generate solid cash flow and reduce
its refinancing needs for at least the next two years.

"We expect JBS's operations to remain sound, because the company
benefits from geographic and product diversification, which allows
the company to mitigate the impact stemming from the industry's
downturns. For instance, we expect JBS's U.S. beef operations to
continue posting sound profitability in the short term, while
operations in Brazil are gradually recovering after several weak
quarters and should also benefit from higher export revenues in
domestic currency given its current weakness. As a result, we
believe the company will reduce leverage, with debt to EBITDA at
around 3.5x in 2019."


ODEBRECHT SA: Punta Catalina Power Plant Undergoes First Test Run
-----------------------------------------------------------------
Dominican Today reports that the Punta Catalina power plant was to
undergo its first test run last Oct. 11, as related by State
Electric Utility (CDEEE) Chief Executive Officer Ruben Jimenez
Bichara.

The U.S.-based company Xcoal Energy recently won the tender to
supply 462,000 metric tons of coal to fuel Punta Catalina during
its trial period, starting November, according to Dominican Today.

The scandal-fraught facility Punta Catalina features two
generators of 376 megawatts each, located near Bani, southern
Peravia Province, the report notes.

Being built by the notorious Brazilian company Odebrecht SA, the
facility is at the center of a scandal on alleged ballooned cost
as high as US$1.2 billion, the report cites.

                    About Odebrecht SA

Construtora Norberto Odebrecht SA is a Latin American
engineering and construction company fully owned by the
Odebrecht Group, one of the 10 largest Brazilian private groups.
Construtora Norberto is the world's largest builder of
hydroelectric plants, of sanitary and storm sewers, water
treatment and desalination plants, transmission lines and
aqueducts.  The Group's main businesses are heavy engineering
and construction based in Rio de Janeiro, Brazil, and Braskem
S.A., its chemicals/petrochemicals company, based in Sao Paulo,
Brazil.

As of May 5, 2009, the company continues to carry Standard and
Poor's BB Issuer Credit ratings, and Fitch Rating's BB+ Issuer
Default ratings and BB+ Senior Unsecured Debt ratings.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 2, 2016, The Wall Street Journal related that Marcelo
Odebrecht, the jailed former head of Brazilian construction giant
Odebrecht SA, agreed to sign a plea-bargain agreement in
connection with Brazil's largest corruption probe ever, according
to a person close to the negotiations.  The move could roil the
nation's political class yet again.  The testimony of the former
industrialist, which is part of the deal, has the potential to
implicate numerous politicians who allegedly took kickbacks from
contractors as part of a years-long graft ring centered on
Brazil's state-run oil company, Petroleo Brasileiro SA, known as
Petrobras, according to The Wall Street Journal.


SANTA CATARINA: Fitch Affirms BB- LT IDR, Outlook Stable
--------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Rating
(IDR) of the Brazilian state of Santa Catarina at 'BB-'. The
Rating Outlook is Stable. The ratings of Santa Catarina are capped
by the Brazilian sovereign rating. Fitch has also affirmed Santa
Catarina's National long-term rating at 'AA(bra)'/Stable.

The affirmation of ratings reflects the state of Santa Catarina's
consistent revenue generation over the last five years. According
to Fitch's calculation, operating margins reached 3.1% in 2017,
comparing favorably with its peers. The ratings are also based on
the state's above average fiscal autonomy in which proprietary tax
revenues accounted for around 70% of the state's operating
revenues.

KEY RATING DRIVERS

Fiscal Performance: Neutral/Stable

Operating margins have averaged 4.6% per year over the last five
years, comparing adequately with other large states in Brazil, but
lower in relation to the average of international peers.
Counterbalancing factors include Santa Catarina's superior tax
autonomy and its overall fiscal balances over the last five years.

Debt, Liabilities and Liquidity: Neutral/Stable

Santa Catarina's direct risk of BRL16.4 billion represented 57% of
operating revenue in 2017 fairly stable in relation to previous
years. The state is exposed to currency risk with roughly 32% of
financial debt denominated in U.S. dollars, creating vulnerability
to the recent Brazilian real depreciation. The federal government
remains the state's most relevant creditor.

Santa Catarina has not reported delays in salary payments over the
last two years. The amount of unpaid commercial short-term
liabilities remained low at 3.8% of operating revenues in 2017.
The delayed payments to suppliers equivalent to around 3.5% of the
state's operating revenues should be paid until the end of 2018,
as per local prudential rules. As a result, gross cash diminished
to BRL3.7 billion in April 2018 from BRL9.6 billion registered in
2017.

Economy: Neutral/Stable

Santa Catarina's economy presents a GDP per capita close to
USD10,000. Fitch expects the state's economy to perform better
than the 1.3% growth projected for Brazil in 2018. Santa
Catarina's economy benefited from exports, given its
infrastructure of five ports, in addition to the depreciated
Brazilian real. The state's fiscal performance is positively
influenced by export-related activities.

Santa Catarina ranks first in terms of unemployment rate, reaching
6.3% in December 2017, while the Brazilian average was 11.8% in
the same period. Also, the state's infant mortality (9.2x vs
average of 13.3x) and illiteracy rates (2.8% vs Brazilian average
of 7.2%) compare very well nationwide, thus implying better living
conditions.

Management and Administration: Neutral/Stable

Santa Catarina presents full and timely disclosure of financial
information. The state reported 55,293 active public servants in
August 2018, 10% lower compared with December 2016, evidencing the
efforts to reduce overhead. The state's administrative structure
maintained its 15 departments (secretarias).

Institutional Framework: Weak/Stable

Fitch considers the institutional framework of Santa Catarina to
be weak with a stable trend, mainly as a result of very low fiscal
flexibility that stems from subdued fiscal collection coupled with
rigid cost structure. The federal government has great influence
over Brazilian local and regional governments (LRGs), as expressed
by the vertical issuance of laws and on the basis that the federal
government is the largest LRG creditor in many cases.

RATING SENSITIVITIES

Any rating action affecting Brazil (BB-/Stable) may result in a
similar action for the state of Santa Catarina. Should the state
present a significant deterioration in operating margins, a
downgrade would be warranted.

FULL LIST OF RATING ACTIONS

Fitch has affirmed the following ratings:

State of Santa Catarina:

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

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

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

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



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EMPRESA ELECTRICA II: Moody's Rates $725MM Sec. Notes Due 2034 Ba1
------------------------------------------------------------------
Moody's Investors Service assigned a Ba1 rating to Empresa
Electrica Cochrane II SpA proposed issuance of up to US$725
million of 16-year senior secured notes due 2034. The notes will
fully amortize in 24 semi-annual installments following a grace
period that is scheduled to expire in 2023. The rating outlook is
stable.

The SPV will also enter into a fully amortizing bank credit
facility for up to US$180 million due in 2022. Proceeds from the
Notes and the credit facility will be initially held in an Escrow
Account, until the SPV contributes the funds to its sister company
Empresa Electrica Cochrane SpA.

Cochrane will use the proceeds from the Notes and the credit
facility to fund the prepayment of its existing project finance
loan and associated costs, including the termination of the
existing hedging agreement. Immediately after the prepayment, the
SPV will merge into Cochrane, such that the Issuer will cease to
exist and Cochrane will be the surviving entity. As a result,
Cochrane will assume the obligations under the Notes and the
credit facility.

RATINGS RATIONALE

The Ba1 rating reflects Cochrane's credit quality and that its
cash flows will be the sole revenue source to service the notes.
This view anticipates that this coal-fired power generation
company will assume the obligations under the notes and credit
facility, and that both pieces of debt will represent Cochrane's
only outstanding debt following the prepayment of its existing
project loan facility.

The Ba1 rating considers Cochrane's proven technology, and
anticipates continuation of its satisfactory operational
performance since its two units came online in 2016. It also
factors in its comprehensive insurance coverage as well as the
contracted nature of its operations. The rating also reflects the
robust terms of its power purchase agreements (PPAs) and their
weighted average life of around 16 years that enhance its cash
flow visibility. The remuneration under the contracts includes
fixed charges that are sized to cover the generator's fixed costs,
including its debt service. The PPAs are also subject to monthly
indexation and energy allowances clauses that, subject to the
specifics of each contract, allow the issuer to pass-through the
marginal costs of procuring power in the spot market during the
plant's annual maintenance and major overhaul periods, as well as
certain extended forced outages. The contracts are denominated in
US dollars, the same currency as Cochrane's debt.

The Ba1 rating factors in the fully amortizing nature of
Cochrane's debt arrangements that will gradually reduce its high
leverage. It also considers that the notes will mature in 2034,
around three years before the expiration of Cochrane's last PPA in
2037. The Ba1 rating further recognizes that the scheduled
amortization payments have been sculptured for Cochrane to be able
to record a strong Debt Service Coverage Ratio over contracted
cash flows in excess of 1.4x.

The Ba1 rating considers that Cochrane's ability to meet its debt
service benefits from the system's capacity payments and the
credit quality of Sociedad Quimica y Minera de Chile S.A. (SQM;
Baa1 stable), the off-taker of 23% of its contracted capacity.
Moody's estimates that the combination of the capacity payments
and SQM's fixed charges currently equal around 33% of Cochrane's
total fixed revenues. The rating anticipates that the fixed charge
obligations of Cochrane's other two mining off-takers: Sierra
Gorda SCM (SG; unrated) and Quebrada Blanca expansion (QB 2;
unrated) will remain guaranteed by their respective shareholders
at least over the medium term. The shareholders' corporate
guarantees and letter of credits (LCs) with strong financial
institutions currently aggregate nearly $745 million and enhance
the reliability of Cochrane's contracted cash flows and drive its
expectation that it will be able to comfortably meet its annual
debt service requirements over the medium-term.

However, the rating is tempered by the uncertainty regarding the
standalone credit qualities of SG and QB, upon the release of
their shareholders' corporate guarantees and/or LCs. The releases
are contingent upon the mines achieving certain operational and
financial requirements which Moody's estimates could occur as
early as 2020 for the SG's obligations and 2022 for QB 2, if its
expansion starts by early next year. Upon their releases Cochrane
will not be able to call back the guarantees. Therefore, the long-
term off-takers' credit quality on a standalone basis is an
important rating consideration given that they account for around
77% of Cochrane's contracted load, and the long-tenor of the
proposed Notes issuance. Uncertainties related to the future
operational performance and capital structure of these two mining
projects, particularly in the case of QB 2 but also upon the
maturity of SG's outstanding $1 billion shareholder loan in 2024,
constrain its views as to these off-takers' future credit quality.
That said, Cochrane's Ba1 rating incorporates the importance of
these mining projects for their respective shareholders, and the
expectation that the projects' capital structure will reflect the
financial policies that drive the shareholders' overall high
credit quality. Nevertheless, these uncertainties temper the Ba1
rating, particularly in the absence of strong liquidity
arrangements that help to mitigate Cochrane's counterparty risk
exposure over the long term. Moody's anticipates that Cochrane
will hold a cash balance of only around $20 million, while the
transaction structure does not foresee a debt service reserve
account.

The Ba1 rating and stable outlook also factor in its assessment
that the plant's exposure to carbon transition risk is moderate
despite Chile's aggressive energy renewable targets of 50% of
total energy by 2030. This view considers the coal-fired plant's
relatively new vintage and low variable costs (that currently
approximate $44/MWh), and competitive position within the Chilean
national electricity system's (SEN) dispatch curve. The stable
outlook considers its expectation that Cochrane has lower exposure
for an early retirement than older and less efficient coal-fired
facilities in the country, particularly as long as battery storage
costs remain high and base-load is required to support the
intermittent nature of the solar and wind resources. The stable
outlook also anticipates that Cochrane will be able to pass-
through under its PPAs the de-carbonization related costs,
including the $5/emitted Co2-ton tax that became effective this
year.

Factors that could lead to an upgrade

The uncertainties around the future standalone credit quality of
SG and QB 2 limit the prospects of an upgrade over the short-term.
However, satisfactory standalone credit profiles of SG and QB upon
the release of their shareholder's guarantees and/or LCs combined
with Cochrane's sound operating and financial performance could
result in a rating upgrade.

Factors that could lead to a downgrade

A downgrade of the rating would be triggered if Cochrane's cash
flows deteriorate due to a weakening in its operations for an
extended period of time and/or upon a deterioration in the
reliability of the projects' cash flows, for example if the
standalone credit profiles of SG and QB are significantly weaker
than their sponsors' credit quality. A downgrade is also likely if
the project fails to record a DSCR of at least 1.4x, on a
sustainable basis, and/or following a change in its ownership
structure that is detrimental for its credit quality and/or a more
elevated exposure to carbon transition risk than currently
anticipated.

The principal methodology used in this rating was Power Generation
Projects published in June 2018.

Cochrane II, is a privately held joint-stock special purpose
vehicle organized under the laws of the Republic of Chile.
Cochrane II will cease to exist after its reverse merger with
Cochrane.

Cochrane is a 550 MW (gross) coal-fired generation facility that
operates in the northern part of the Chilean SEN. It has fully
contracted it net capacity with three off-takers: (i) SQM (Baa1,
stable; 110MW); (ii) SG (unrated; 251MW), a joint venture between
subsidiaries of Sumitomo Corporation (indirect interest stake:
30%; Baa1 stable), its subsidiary Sumitomo Metal Mining (70%;
unrated) and KGHM International Ltd which is wholly-owned by the
Polish state-owned company KGHM Polska Miedz SA. (unrated); and
(iii) QB 2 (unrated; 122 MW), a subsidiary of Teck Resources
Limited (Ba1 positive).

The indirect shareholders of both companies are AES Gener S.A.
(60%; Baa3, negative) and Mitsubishi Corporation (A2 stable).



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


DOMINICAN REPUBLIC: 25 % of Rum Sold Doesn't Pay Taxes
------------------------------------------------------
Dominican Today reports that 25% of the rum sold in the country
doesn't pay taxes, affirmed Casa Brugal President, Augusto
Ramirez.

"These are not clandestine companies, but companies that are
formally registered, but do not declare all their transactions,"
he said, Dominican Today relates.

Speaking in the Corripio media group's weekly Luncheon, Mr.
Ramirez noted that every year, there are market audits to
establish the amount of rum sold in the Dominican Republic, as
well as sales by brand, the report notes.  "It can be verified
that the sales are higher than those declared in the Internal
Taxes Directorate," he added.

To deal with the problem, Mr. Ramirez said, the State should focus
on the country's distilleries, the companies that produce rum and
in Customs "through which all beverages enter," the report relays.

The exportation of rum produced nationwide generates economic
income ranging between 80 and 90 million dollars a year, the
report adds.

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


DOMINICAN REPUBLIC: Embraces Competitiveness on Exports
-------------------------------------------------------
Dominican Today reports that the National Competitiveness Council
approved a series of measures that support exports with a country-
brand strategy and to create export certification programs for
industry and agriculture.

In the meeting headed by President Danilo Medina, Council director
Rafael Paz said also approved were fiscal measures to support the
country's industries and productive sectors, according to
Dominican Today.

"With these measures these policies are relaunched, in the area of
logistics it was agreed to expand the schedule of ports to enhance
the logistics capacity and exports of the Dominican Republic. The
schedule of the ports will be from 7:a.m. to 10:00 p.m.," Mr. Paz
said in a National Palace press conference, the report notes.

He said government agencies linked to foreign trade were
instructed to increase their personnel and their types of
workdays, the report relays.  "We are talking about a significant
expansion of logistics capacity to achieve that in this year of
export promotion we can exceed the goals that have already been
set by the Government," he added.

The report notes that he added that regarding the country brand,
the bases have been created, so that the Tourism Ministry and the
Dominican Republic Export and Investment Center can outline
strategies to support and promote the country abroad. "This seeks
to promote not just the country's productive potential abroad, but
also its tourism, industry and agriculture."

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



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


DIGICEL GROUP: Launches Suit Against Surinamese Regulator
---------------------------------------------------------
RJR News reports that Digicel Group has launched legal proceedings
against Surinamese regulator, Telecommunications Authority
Suriname (TAS) over the shutdown of its trans-border link which
has since been disrupting the company's services to Guyana.

This was confirmed by a senior official of Digicel who revealed
that the matter is engaging the attention of the company's legal
team, according to RJR News.

It was reported that TAS shutdown the allegedly illegal microwave
link, which Digicel used to feed data capacity to its unit in
Guyana, the report adds.

Digicel has operations in 31 markets in the Caribbean, Central
America and the Asia Pacific region.  In 2015, the company pulled
a planned $2.3 billion initial public offering, blaming conditions
in emerging markets, The Wall Street Journal reported at the time.
The company generated $2.4 billion in revenue in the year ended in
March, according to Moody's.

As reported in the Troubled Company Reporter-Latin America on
July 5, 2018, Moody's Investors Service has changed to negative
from stable the outlook on the ratings of Digicel Group Limited
("Digicel", "DGL" or the "company") and Digicel Limited ("DL") and
assigned a negative outlook to Digicel International Finance
Limited ("DIFL"). At the same time, Moody's has affirmed DGL's B2
corporate family rating (CFR) and B2-PD probability of default
rating (PDR), as well as the B1 rating on the unsecured notes of
DL and the Ba2 rating on the secured bank credit facilities of
DIFL.



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


* BOND PRICING: For the Week October 8 to October 12, 2018
----------------------------------------------------------

Issuer Name               Cpn     Price   Maturity  Country  Curr
-----------               ---     -----   --------  -------   ---

Banco do Brasil SA/Cayman 6.25   75.043                 KY     USD
Rio Energy SA             6.875  71.638   2/1/2025      AR     USD
Cia Latinoamericana       9.5    60.447   7/20/2023     AR     USD
CSN Islands XII Corp      7      69.44                  BR     USD
Agua y Saneamientos       6.625  71.982   2/1/2023      AR     USD
Odebrecht Finance Ltd     7.5    39.15                  KY     USD
YPF SA                   16.5    50.96    5/9/2022      AR     ARS
Odebrecht Finance Ltd     4.37   35.715   4/25/2025     KY     USD
Banco Macro SA           17.5    50       5/8/2022      AR     ARS
Odebrecht Finance Ltd     7.12   37.293   6/26/2042     KY     USD
China Huiyuan             6.5    75.1     8/16/2020     CN     USD
Odebrecht Finance         5.125  45.754   6/26/2022     KY     USD
Noble Holding             6.2    74.46    8/1/2040      KY     USD
Noble Holding             5.25   70.444   3/15/2042     KY     USD
Odebrecht Finance         7      58.985   4/21/2020     KY     USD
Noble Holding             6.05   73.508   3/1/2041      KY     USD
Odebrecht Finance         5.25   36.2     6/27/2029     KY     USD
Rio Energy SA             6.875  71.551   2/1/2025      AR     USD
BCP Finance Co            1.751  74.397                 KY     EUR
Provincia del Chubut      4              10/21/2019     AR     USD
YPF SA                   16.5    50.96   5/9/2022       AR     ARS
Argentina                 7.125  76      6/28/2117      AR     USD
Automotores Gildemeister  6.75   62.759  1/15/2023      CL     USD
Odebrecht Finance         6      37.193  4/5/2023       KY     USD
Banco do Brasil           6.25   76.375                 KY     USD
Cia Latinoamericana       9.5    60.621  7/20/2023      AR     USD
Polarcus Ltd              5.6    70      7/1/2022       AE     USD
Argentina                 6.875  74.985  1/11/2048      AR     USD
Provincia del Chubut      7.75   72.304  7/26/2026      AR     USD
Banco Macro SA           17.5    50      5/8/2022       AR     ARS
CSN Islands XII Corp      7      74.375                 BR     USD
Provincia de Rio Negro    7.75   70.153  12/7/2025      AR     USD
Provincia de Entre Rios   8.75   71.083   2/8/2025      AR     USD
Argentina                 4.33   70      12/31/2033     AR     JPY
Provincia de Entre Rios   8.75   72.333   2/8/2025      AR     USD
Odebrecht Finance Ltd     4.375  35.242   4/25/2025      KY    USD
Ironshore Pharma         13      69.621   2/28/2024      KY    USD
Automotores Gildemeister  8.25   60.583   5/24/2021      CL    USD
Odebrecht Finance Ltd     7.125   38.674  6/26/2042      KY    USD
Odebrecht Finance Ltd     5.25    36.187  6/27/2029      KY    USD
Province of Santa Fe      6.9     74.177  11/1/2027      AR    USD
Provincia del Chubut      7.75    71.654  7/26/2026      AR    USD
Argentina                 6.25    72.711  11/9/2047      AR    EUR
Cia Energetica            6.1827   1.105  1/15/2022      BR    BRL
Odebrecht Finance         7.5     43.5                   KY    USD
Argentina                 0.45    31.75  12/31/2038      AR    JPY
SACI Falabella            2               7/15/2020      CL    CLP
Province of Jujuy         8.625   72.788  9/20/2022      AR    USD
Province of Santa Fe      6.9     73.44  11/1/2027       AR    USD


Ironshore Pharma         13       69.621  2/28/2024      KY    USD
Tanner Servicios         3.8      52.42   4/1/2021       CL    CLP
AES Tiete Energia SA     6.78      1.06   4/15/2024      BR    BRL
Odebrecht Finance Ltd    6        37.19   4/5/2023       KY    USD
Provincia de Rio Negro   7.75     70.15  12/7/2025       AR    USD
Odebrecht Finance        7        59.466  4/21/2020      KY    USD
Odebrecht Finance Ltd    5.12     47.298  6/26/2022      KY    USD
Provincia de Cordoba     7.12     74.286  8/1/2027       AR    USD
Argentina                7.125    75.752  6/28/2117      AR    USD
Automotores Gildemeister 8.25     60.583  5/24/2021      CL    USD
Enlasa Generacion        3.558           11/15/2023      CL    CLP
Metrogas SA/Chile       645               8/1/2024       CL    CLP
Automotores Gildemeister 6.75     62.759  1/15/2023      CL    USD
Provincia del Chaco      9.375    72.315  8/18/2024      AR    USD
Fospar S/A               6.53      1.034  5/15/2026      BR    BRL
Sociedad Concesionaria   2.9547           6/30/2021      CL    CLP
Esval SA                 3.453            3/15/2028      CL    CLP
Caja de Compensacion     7.75     35.23   3/27/2024      CL    CLP
Sociedad Austral       318.478            9/20/2019      CL    CLP
Provincia de Neuquen     7.5      74.753  4/27/2025      AR    USD
Caja de Compensacion     5.2              9/15/2018      CL    CLP
Empresa de Transporte    4.341            7/15/2020      CL    CLP
Corp Universidad         5.968           11/10/2021      CL    CLP
Provincia de Cordoba     7.125    74.802  8/1/2027       AR    USD
Provincia del Chaco      9.375    72.585  8/18/2024      AR    USD
Argentine Republic       7.125    75.322  6/28/2117      AR    USD
Sylph Ltd                2.367    61.194  9/25/2036      KY    USD
Banco Security SA      311                7/1/2019       CL    CLP
Sylph Ltd                2.657   73.081   3/25/2036      KY    USD



                            ***********


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.
.


                   * * * End of Transmission * * *