TCRLA_Public/181114.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, November 14, 2018, Vol. 19, No. 226


                            Headlines



A R G E N T I N A

ARGENTINA: S&P Lowers LT Currency Ratings to 'B', Outlook Stable


B R A Z I L

COMPANHIA ENERGETICA: Fitch Ups IDRs to B+; Alters Outlook to Pos.
INVEPAR: S&P Lowers Global Scale Issuer Credit Rating to 'B'


C H I L E

CHILE: IMF Says Economy Recovering From a Prolonged Slowdown


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Production Boost Puts 3Q Growth at 6.9%


E C U A D O R

BANCO DE LA PRODUCCION: Fitch Affirms B- LT IDR, Outlook Stable
BANCO PICHINCHA: Fitch Affirms B- LT IDR, Outlook Stable


G U A T E M A L A

BANCO INDUSTRIAL: Moody's Affirms Ba1 Deposit Rating


J A M A I C A

JAMAICA: Net International Reserves Declines
JAMAICA: BOJ Says Risks to Financial Stability Remained Low


P A R A G U A Y

PARAGUAY: Floods Force 6,000 Families From Their Homes


P U E R T O    R I C O

INTRADE LOGISTICS: Monthly Payment to Unsecureds Reduced to $866
KONA GRILL: Marcus Jundt and Steven Schussler Appointed as Co-CEOs
KONA GRILL: Incurs $5.1 Million Net Loss in Third Quarter
STONEMOR PARTNERS: Expects Net Loss to Stay Flat in Q1 2018


                            - - - - -


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A R G E N T I N A
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ARGENTINA: S&P Lowers LT Currency Ratings to 'B', Outlook Stable
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On Nov. 12, 2018, S&P Global Ratings lowered its long-term foreign
and local currency ratings on Argentina to 'B' from 'B+' and
affirmed its short-term foreign and local currency ratings at 'B'.
S&P said, "We also removed the long-term ratings from CreditWatch,
where we placed them on Aug. 31, 2018, with negative implications.
The outlook on the long-term ratings is stable. At the same time,
we lowered our national scale ratings to 'raAA-' from 'raAA'. We
also lowered our transfer and convertibility assessment to 'B+'
from 'BB-'."

OUTLOOK

S&P said, "The stable outlook reflects our expectation that the
government will implement difficult fiscal, monetary, and other
measures to stabilize the economy over the coming 18 months,
gradually staunching the deterioration in the sovereign's
financial profile and debt burden, reversing inflation dynamics,
and restoring investor confidence. The combination of lower
government financing needs, declining inflation and interest
rates, and expectations of continuity in key economic policies
after national elections in October 2019 could set the stage for
economic recovery and contain external vulnerability.

"We could lower the rating over the next 12 months if unexpected
negative political developments or uneven implementation of the
government's economic austerity program further damage investor
confidence, worsening the government's access to market financing
and potentially placing pressure on the currency, thereby
worsening inflation dynamics. Similarly, perceptions that the
sovereign's commitment to the economic adjustment program could
waver after national elections in 2019 could create similar
unfavorable market dynamics, potentially resulting in prolonged
high interest rates. In either case, the resulting deterioration
in the sovereign's financial profile and access to liquidity to
roll over maturing debt could lead to a lower rating.

"We could raise the rating over the next two years if successful
policy implementation leads to a faster-than-expected fall in
inflation, greater currency stability, and a shallower-than-
expected recession. That, plus expectations of continuity in
economic policies past the 2019 elections, could reverse the
recent deterioration in Argentina's fiscal, debt, and monetary
profile, as well as improve its long-term GDP growth prospects.

RATIONALE

The downgrade reflects an erosion of Argentina's economic growth
trajectory, inflation dynamics, and debt profile following
setbacks in implementing its challenging economic adjustment
program. Recently announced changes in fiscal and monetary policy
have helped to stabilize financial markets after a second bout
this year of capital flight and currency depreciation started in
August. However, the impact of uneven implementation of the
government's economic strategy in the recent past has led S&P to
worsen its projections for the sovereign's financial profile,
inflation, and economic performance over the coming two years.

S&P said, "We expect that GDP will contract 2.5% this year and by
nearly 1% in 2019 before recovering modestly in 2020. Inflation is
likely to end the year around 44% and may decline only gradually
toward 25% in 2019. The rapid depreciation of the Argentine peso
against the dollar earlier this year has contributed to an
increase in the government's debt burden (as most of the
sovereign's debt is denominated in foreign currency). We expect
that net general government debt may exceed 80% of GDP this year,
up from 50% in 2017."

The ratings on Argentina reflect its weak fiscal and external
profiles, limited monetary flexibility, and growing debt burden,
which is predominantly denominated in foreign currency. More than
70% of central government debt is in foreign currency, but 42% of
it is held by creditors in the public sector, mitigating the
rollover risk. The ratings also reflect a deteriorated economic
risk profile and S&P's assessment of weak institutional and
governance effectiveness.

Political polarization and institutional weaknesses constrain the
effectiveness of Argentina's institutions of governance, creating
uncertainty about the long-term stability of key economic
policies. Argentina has limited monetary flexibility, in part
because of its small domestic capital markets and high inflation
rate. Such shortcomings have contributed to a weak external
position as Argentina remains heavily reliant on external funding
to finance persistent and high fiscal deficits.

Institutional and economic profile: Economy contracts as Argentina
approaches national elections in 2019

-- A history of economic instability and sharp changes in
    economic policies has weakened the credibility of Argentina's
    governing institutions.

-- The recent economic crisis has lowered the president's popular
    approval levels, raising risks for economic policy
    implementation.

-- S&P expects policy continuity following national elections in
    late 2019.

Argentina's democracy has been characterized by a history of
political polarization that limits the government's ability to
implement its economic agenda. The country has entered into 11
programs with the International Monetary Fund (IMF) since the
1980s, reflecting its history of economic volatility.

There has been improvement in checks and balances between public
institutions, enforcement of contracts, and respect for the rule
of law in recent years, but these political pillars remain weak. A
longer track record of adherence to the rule of law would be
considered a sign of institutional strengthening. Argentina ranks
117 out of 190 countries in 2018 in the Doing Business ranking
(World Bank), improving from 121 in 2016. Also, the country ranks
85 out of 180 countries in the 2017 Corruption Perceptions Index,
also improving from the 95th place in 2016.

The recent economic crisis has lowered the political approval
level of the administration of President Mauricio Macri, raising
risks for economic policy implementation. An outflow of capital
and resulting sharp depreciation of the currency in early 2018 led
the government to introduce an economic austerity program and seek
a $50 billion program from the IMF. Following further market
turmoil, the government obtained a larger IMF program ($57
billion) with more money disbursed upfront. The revised program,
which tightens both fiscal and monetary policy, allows the
government to use IMF money for budgetary support and balance of
payments purposes.

Although the IMF program should ensure sufficient external funding
until after the October 2019 national elections, political
pressures could still weaken or undermine its successful
implementation. Political opposition to the IMF program has
contributed to rising political tension. The government has
responded by segregating key social programs from spending cuts
and boosting spending in some programs (such as child allowances
and pensions). The IMF agreement allows for limited increases in
social spending. Such flexibility could contain public opposition
to the austerity program and strengthen the administration's
ability to implement its program during an election year. S&P
expects that the government will be able to pass its austere 2019
budget despite lacking a majority in the Congress.

One of the weaknesses in Argentina's institutional assessment is
its history of major changes in economic policy following changes
of political leadership. The money available under the IMF
program, as well as from other multilateral lenders, should
largely cover the government's fiscal funding needs for 2018 and
2019. However, the long-term viability of the economic adjustment
program depends on reducing the fiscal deficit, introducing a new
monetary and exchange rate policy to re-establish the credibility
of the central bank, reduce inflation, and regain market access.
S&P expects the next administration (following elections in late
2019) will largely continue with market-friendly economic
policies, setting the stage for economic recovery in late 2019 or
early 2020.

Recent revelations of illegal payments to officials of the
previous Kirchner administration (the so-called "notebooks"
scandal) have implicated former President Cristina Kirchner and
high officials in her government, as well as some business
leaders. The scandal could help the Macri administration in
managing its relationship with Congress, weakening the hard-line
Kirchner faction of the Peronist party and encouraging other
Peronist leaders (including governors), who are more likely to
seek pragmatic arrangements with the government on economic
matters.

S&P said, "We have revised our economic growth forecasts downward
for 2018 and 2019 following the recent economic setbacks,
highlighting the country's poor long-term growth performance.
Argentina's long-term growth performance is worse than that of
other countries at a similar level of wealth and development. We
expect economic contraction of 2.5% in 2018 and almost 1% in 2019
before a recovery of around 2.5% in 2020. We estimate GDP per
capita will be around $10,500 in 2018, down from nearly $14,500 in
the previous year (due mainly to depreciation of the currency).
Argentina's poor record of low and volatile growth weighs upon our
economic assessment."

A recovery in agriculture could boost output and exports in the
second quarter of 2019, limiting the overall contraction in the
economy driven by weak domestic demand. However, GDP is likely to
contract next year, despite better net exports and a likely
improvement in financial market conditions. S&P's forecast for GDP
growth in 2020 is based on its assumption that the government
largely succeeds with its economic adjustment policies (with only
moderate slippage), leading to better financial conditions and
higher investor confidence.

Beyond 2019, long-term trend growth is likely around 3%. A more
competitive exchange rate, continued growth in agricultural
exports, higher energy production, and a recovery in domestic
demand should sustain long-term growth. However, continued growth
depends on maintaining access to external funding (from official
lenders in 2019 and increasingly from private lenders thereafter),
given the government's high debt burden and the small capacity of
domestic capital markets.

Flexibility and performance profile: Limited room to maneuver
because of high debt and external vulnerability

-- A high debt burden and dependence on external funding
    contribute to limited fiscal and external flexibility.

-- Argentina will have limited external liquidity over the coming
    years, as reflected in its narrow net external debt and its
    gross external financing metrics.

-- A high share of foreign currency debt raises the sovereign's
    vulnerability to a sharp adverse movement in the exchange
    rate, as happened this year.

Argentina's dependence on external funding is a vulnerability in
the rating. S&P said, "We expect narrow net external debt to
exceed 200% of current account receipts in 2018 and decline
slightly below that threshold in the following three years. We
project gross external financing needs to usable reserves and
current account receipts to exceed 130% in 2018 and remain above
120% in the next three years."

External vulnerability has worsened in 2018, following capital
outflows and currency depreciation. In response, the central bank
dramatically raised its policy interest rate to staunch capital
outflows.

A weaker currency and falling domestic demand will help reduce the
current account deficit toward 4.6% of GDP in 2018 from nearly 5%
last year. The economic downturn, along with a recovery in
agricultural exports, should help lower the external deficit
toward 2% of GDP in 2019. S&P said, "Afterwards, we expect the
current account deficit to widen toward 3% of GDP as the economy
recovers. The trade account is likely to be close to balance. We
expect net inflows of foreign direct investment (FDI) to be around
1.3% of GDP on average over the next three years, similar to the
average level during 2012-2017. The combination of FDI and
official capital inflows should largely fund the current account
deficit in 2018-2019."

The depreciation of the currency is likely to boost inflation
toward 45% by the end of 2018, up from 25% in 2017. The
combination of tight monetary policy, fiscal austerity, recession,
and a more stable currency is likely to reduce inflation toward
25% by the end of 2019 and likely below 20% in the following year.

The government changed its exchange rate policy as part of its
amended IMF program, letting the currency float within a band,
adjusted by 3% every month. It also changed its strategy for
containing inflation by shifting to controlling the monetary base.
The new policy is to limit the growth in the nominal monetary base
to 0% monthly until June 2019 and to only 1% per month through the
end of 2019 (implying a substantial reduction in real terms). The
central bank also began to reduce the stock of Lebacs (debt it had
issued largely to sterilize increases in money supply) and started
to issue new types of debt for monetary policy to gain better
control over domestic liquidity.

A high debt burden and fiscal rigidities contribute to Argentina's
limited fiscal flexibility. S&P said, "We estimate the change in
net general government debt to average nearly 9% of GDP in 2019-
2021, largely reflecting adjustments coming from exposure to
foreign currency and indexation to inflation (as well as small
fiscal deficits). We expect net general government debt to spike
above 80% of GDP in 2018 (from 50% in 2017) and average around 70%
of GDP in 2019-2020." The movement in the debt ratio largely
reflects the impact of inflation and currency volatility. Interest
expenses will also rise largely on the impact of currency
depreciation. Interest expenses are likely to remain above 10% of
general government revenues in 2018 and 2019. Successful
implementation of the economic adjustment program, along with
greater exchange-rate stability, could help stabilize the debt
burden and reduce it in the following years.

A high share of foreign currency debt raises Argentina's fiscal
vulnerability to a sharp adverse movement in the exchange rate, as
happened this year. Around 75% of the debt is in foreign currency,
up from 68% in 2017. However, about 42% of central government debt
is held by creditors in the public sector (the largest share with
the central bank). Official debt accounts for about 10% of the
government's total debt. S&P excludes sovereign debt held by the
pension system (ANSES), which accounted for 9% of central
government debt, or 6% of GDP, as of June 2018.

The central government will likely outperform its revised fiscal
targets for 2018, thanks to spending austerity and new revenue
measures, but may find it difficult to reach its targets in the
coming year (especially due to election pressure). It has
committed to reduce the primary fiscal deficit to 2.7% of GDP in
2018 and 0% in 2019 and has targeted a primary surplus of 1% of
GDP in 2020. The program is ambitious--the government has not run
a primary surplus since 2009.

S&P expects that the overall general government fiscal deficit
could be below 6% of GDP in 2018, with rising interest payments
accounting for over half of it (around 3% of GDP). The central
government deficit will likely exceed 5% of GDP. The general
government fiscal deficit is likely to fall below 4% of GDP in
2019 (and the primary balance will likely come close to zero). The
planned fiscal adjustment is based on spending cuts (1.2% of GDP)
and higher revenues (1.5% of GDP, mainly from export taxes). On
the spending side, around half the savings are slated to come from
reduced subsides on energy and transportation, and much of the
rest from capital spending.

The official funding available for 2019 should be sufficient to
cover the government's financing needs, provided that it
implements the fiscal and other adjustments in the IMF program and
maintains domestic confidence. Scheduled disbursements from the
IMF should fill over half of the government's financing needs in
2019, with the rest coming from other official lenders and
domestic private-sector creditors (assuming a rollover rate of
around 60% for repurchase agreements, as well as for other locally
issued dollar- and peso-denominated short-term debt).

S&P said, "We view contingent liabilities as being limited,
including those posed by the banking system. We classify the
banking sector of Argentina in group '8' according to our Banking
Industry Country Risk Assessment (BICRA), with '1' being the
lowest risk category and '10' the highest. Argentina has a small
financial system, with domestic credit to the private sector
around 17.7% of GDP in 2018 (among the lowest in Latin America).
We estimate that the gross assets of the financial system will be
38% of GDP in 2018, low relative to peers." Banking sector
nonperforming loans grew to 2.2% of total loans as of August 2018
from 1.8% as of year-end 2017 and are likely to rise further next
year. The loans are fully covered by loan loss provisions.

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

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

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

  RATINGS LIST

  Downgraded; Off CreditWatch; Stable Outlook; Ratings Affirmed
                                         To           From
  Argentina
   Sovereign Credit Rating          B/Stable/B     B+/Watch Neg/B

  Downgraded; Off CreditWatch
                                         To           From
  Argentina
   Sovereign Credit Rating
    National Scale                  raAA-/Stable/  raAA/Watch Neg/
   Senior Unsecured                 B              B+/Watch Neg

  Downgraded
                                         To         From
  Argentina
   Transfer & Convertibility Assessment  B+         BB-


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B R A Z I L
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COMPANHIA ENERGETICA: Fitch Ups IDRs to B+; Alters Outlook to Pos.
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Fitch Ratings has upgraded Companhia Energetica de Minas Gerais
and its wholly owned subsidiaries Cemig Distribuicao S.A. and
Cemig Geracao e Transmissao S.A. 's Long-Term, Foreign- and Local-
Currency Issuer Default Ratings to 'B+' from 'B' and their Long-
Term National Scale Ratings to 'A-(bra)' from 'BBB-(bra)'. At the
same time, Cemig GT's USD1.5 billion Eurobond issuance was
upgraded at 'B+'/'RR4' from 'B'/'RR4' and local debentures
issuances were upgraded to 'A-(bra)' from 'BBB-(bra)'. In
addition, Fitch has revised the Outlook for the corporate ratings
to Positive from Stable.

The ratings upgrade is based on Cemig's improved consolidated
financial profile due to its ability to manage a large portion of
its short-term debt maturities during the second half of 2018,
finding relief in its liquidity position. The group's liquidity
and debt maturity profiles benefited mainly from BRL650 million in
funds raised from asset sale, USD500 million from the Eurobonds
re-tap due 2024 and an unexpected BRL1.1 billion cash inflow from
generation assets indemnity. Fitch's previous concern about the
reduction in the group's financial flexibility is now lower after
the assessment of these sources of funding. The expectation of
increasing annual operational cash generation to around BRL400
million-BRL500 million coming from the distribution segment after
the 4th tariff review cycle, which concluded in May 2018, also
adds to the rating action.

The Positive Outlook reflects the expected gradual consolidated
leverage reduction as a consequence of more robust cash flow from
operations (CFFO) and lower capex plans, in a process that can be
accelerated in case of success in the group's ongoing asset sales
initiatives. The net adjusted leverage is expected to be in the
range of 3.0x-4.0x in the next four years. The completion of its
strategy for asset disposal is viewed as positive in the
deleveraging of the group, although time is still uncertain. On
the negative side, the high interest payments and prices of energy
purchase have put pressure on group's cash flow in 2018. For the
coming years, expected FCF is around BRL400 million to BRL1.0
billion.

Cemig and its subsidiaries' credit profiles are analyzed on a
consolidated basis due to cross default clauses and cash dynamics.
The group's still aggressive financial profile is partially offset
by its low to moderate business risks, supported by low
competition and positive diversification mainly into power
generation, transmission and distribution segments, the latter
being the most volatile. Positively, Cemig has a relevant asset
base in the Brazilian electric sector, including shared control in
several companies with relevant market value. The IDRs also factor
in the existence of political risk, due to Cemig's condition as a
state-owned company, as well as a moderate regulatory risk for the
Brazilian power sector and a hydrology risk that incorporates
reservoir levels at hydro plants in Brazil currently below
historical average.

The Recovery Rating of Cemig GT's Eurobond issuance of 'RR4'
reflects the bulk of its assets located in the Brazilian
jurisdiction that has been considered by Fitch in the group of
countries with Recovery Rating capped at 'RR4', which means
recovery prospects in the range of 31% to 50% in the event of
default, given the group's cash flow generation and assets
portfolio.

KEY RATING DRIVERS

Improved Cash Flow: Fitch expects that Cemig's consolidated FCF
will be positive at around BRL375 million in 2019, benefited by
the agency's projection of robust consolidated EBITDA of BRL4.1
billion and manageable capex of BRL1.4 billion. The 4th tariff
review cycle concluded in May 2018 was positive for Cemig D,
benefitting the distribution segment operational cash flow at
around BRL400 million-BRL500 million annually. In 2018, FCF should
be negative at BRL100 million-BRL200 million, affected by non-
manageable costs (CVA) that are expected to be recovered in 2019
and 2020. Fitch expects that a more positive performance at the
distribution segment, combined with the maintenance of an annual
capex level at the range of BRL1.0 billion-BRL1.5 billion during
the 2019-2021 period and a dividend payout of 50% of net income,
should boost the group's FCF to BRL700 million-BRL1.billion in
2020 and 2021, despite the still-relevant debt interest payments.

Declining Leverage Trends: Fitch expects Cemig's consolidated net
adjusted leverage to gradually reduce to around 3.0x at the end of
2021, which is one the factors of the Positive Outlook. In the
last twelve months (LTM) ended on June 30, 2018, Cemig reported
the consolidated ratio net adjusted debt/adjusted EBITDA of 4.6x,
compared with 4.7x in 2017 and 5.9x in 2016. Fitch includes the
debt guarantees of BRL5.9 billion to non-consolidated companies,
mainly Belo Monte and Santo Antonio hydro plants, and the
exercised put option and derivatives in the total adjusted debt.
On the other hand, dividends received from non-consolidated
investments in the amount of BRL394 million are added to the
EBITDA. In case of new assets disposals in relevant amounts, the
deleveraging process can accelerate.

Balanced Business Risk: The group benefits from its business
diversification in terms of segments and assets, which mitigates
operational risks and reduces cash flow volatility. The reduction
of 2.4 GW installed capacity in generation segment in 2017 reduced
the relevance of this business in the group's consolidated results
to the current 60% level. Furthermore, the expected strengthening
in the distribution segment combined with the maintenance of the
current EBITDA level in the generation segment should change
Cemig's EBITDA generation mix, with distribution as the most
representative segment from 2019 on. The positive trend in Cemig
D, derived from the result of the 4th tariff review process and of
estimated annual consumption increase of about 3% over the next
years in its concession area, mitigates the higher volatility
associated with this segment, currently mainly represented by
temporary energy cost and tariffs mismatches. Fitch also expects
to the group to present an efficient management of Cemig GT's
hydrology exposure.

Relevant Player in Brazil: Cemig is one of the largest power
companies in Brazil, with 8.4 million clients served in the
distribution segment, 5.7 GW of power generation installed
capacity and 8.2 thousand km of transmission lines. The company is
expected to reduce its activity in greenfield projects and in the
acquisition of assets after being very aggressive historically.
The debt associated with the acquisitions at relevant levels and
strong dividend payments in the past have significantly affected
the group's credit quality.

Strategic Sector for the Country: Fitch considers the risk of the
Brazilian power sector as low to moderate. In the analysis, the
credit profile of agents in this sector benefits from its
strategic importance to sustain the country's economic growth
potential and foster new investments. The federal government has
acted to circumvent systemic problems that affect the cash flow of
companies and guided discussions to improve the current regulatory
framework in order to reduce the risk of the sector.

DERIVATION SUMMARY

Initially comparing with Brazilian peers in the power sector,
Cemig's credit profile is weaker than Engie Brasil S.A. (Engie)
and Transmissora Alianca de Energia Eletrica S.A. (Taesa), both
rated with Local-Currency and Foreign-Currency IDRs of 'BBB-' and
'BB', respectively, due to higher business risk coming from its
distribution segment and typically lower operational performance
as a state-owned company. In addition, Cemig's financial profile
shows worse leverage and liquidity ratios than the other two
entities. Taesa operates in the highly predictable transmission
segment, while Engie is the largest private player in the
generation segment. In the case of Light S.A. (Light; BB-) lower
scale and relevant dependence on the volatile distribution segment
is compensated by a better financial profile.

When assessing the Latin American peers, Cemig is rated four
notches below AES Gener S.A. (BBB-/Stable) and five notches below
Emgesa S.A. E.S.P (BBB/Stable). Both generation companies benefit
from a superior operating environment since their revenue
generation and assets are located in investment-grade countries,
Chile (A/Stable) and Colombia (BBB/Stable), respectively, while
Cemig operates in Brazil (BB-/Stable).

KEY ASSUMPTIONS

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

  -- Average energy consumption growth at Cemig D's captive market
to increase 2.75% in 2018 and 3.00% in 2019-2020;

  -- Positive annual impact of BRL400 million-BRL500 million on
Cemig D's EBITDA related to the fourth tariff review;

  -- Cemig D's non-manageable costs fully passed through tariffs;

  -- Average consolidated capex of BRL1.3 billion during 2018-
2021;

  -- Dividend payout of 50% of net income;

  -- No further asset sale.

RATING SENSITIVITIES

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

  -- Improvement on the group's liquidity profile;

  -- Increasing EBITDA on the distribution segment combined with
the consolidated net adjusted leverage below 3.5x on a sustainable
basis.

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

  -- The Positive Outlook can be removed in case of Cemig fails to
meet Fitch's expectations in terms of continuing improvement in
its financial profile;

  -- The return to previous levels in terms of pressured liquidity
profile and deteriorated leverage metrics can lead to a downgrade.

LIQUIDITY

Lower Refinancing Risk: Cemig group has been able to manage a
large amount of short-term debt maturities, accessing different
sources of funding. The proceeds of BRL3.7 billion obtained in the
second half of 2018 (USD500 million/BRL1.9 billion from Eurobond
re-tap; BRL1.1 billion from generation assets indemnity and BRL650
million from Cemig Telecom's asset sale) reduced the group
refinancing needs until the end of 2019. The agency believes that
the group will also benefit from improved financial flexibility
and better cash flow generation to meet the financial obligations
in 2019 not covered by the initiatives already concluded. The
potential new asset sales may continue to be important internal
sources of liquidity in the coming years. On June 30, 2018, Cemig
group's total adjusted debt amounted to BRL21 billion (including
off-balance-sheet debt of BRL5.9 billion and exercised put option
of BRL600 million), while cash and equivalents were BRL1.2
billion. Debt maturing in the short term was BRL3.2 billion.

FULL LIST OF RATING ACTIONS

Fitch has taken the following ratings actions:

Cemig

  -- Long-Term, Foreign-Currency IDR upgraded to 'B+' from 'B';

  -- Long-Term, Local-Currency IDR upgraded to 'B+' from 'B';

  -- Long-Term National scale rating upgraded to 'A-(bra)' from
'BBB-(bra)'.

Cemig D

  -- Long-Term, Foreign-Currency IDR upgraded to 'B+' from 'B';

  -- Long-Term, Local-Currency IDR upgraded to 'B+' from 'B';

  -- Long-Term National scale rating upgraded to 'A-(bra)' from
'BBB-(bra)';

  -- BRL1.6 billion senior unsecured debentures due 2018 upgraded
to 'A-(bra)' from 'BBB-(bra)'.

Cemig GT

  -- Long-Term, Foreign-Currency IDR upgraded to 'B+' from 'B';

  -- Long-Term, Local-Currency IDR upgraded to 'B+' from 'B';

  -- Long-Term National scale rating upgraded to 'A-(bra)' from
'BBB-(bra)';

  -- BRL1.4 billion senior unsecured debentures, with two
outstanding series due 2019 and 2022, upgraded to 'A-(bra)' from
'BBB-(bra)';

  -- USD1.5 billion senior unsecured Eurobonds due 2024 upgraded
to 'B+'/'RR4' from 'B'/'RR4'.

The Outlook for the corporate ratings was revised to Positive from
Stable.


INVEPAR: S&P Lowers Global Scale Issuer Credit Rating to 'B'
------------------------------------------------------------
S&P Global Ratings lowered its global scale issuer credit ratings
on Investimentos e Participacoes em Infraestrutura S.A. - Invepar
to 'B' from 'BB-'.

S&P said, "At the same time, we lowered our national scale issuer
credit rating to 'brA-' from 'brAA+'. We also lowered our issue-
level rating on Invepar's third and forth debentures issuances to
'brA-' from 'brAA+'. At the same time, we lowered our issuer
credit and issue-level ratings on Invepar's toll road,
Concessionaria Auto Raposo Tavares S.A. (CART), to 'brA-' from
'brAA+'. We also kept CART's secured debenture '4' recovery
ratings at '4' Invepar's third and forth debentures '3' recovery
ratings remain unchanged." All issuer credit and issue-level
ratings remain on CreditWatch negative."

The downgrades reflect Invepar's inability to take the necessary
measures throughout 2018 to refinance its debt at the holding
company level, originally scheduled to mature on Dec. 11, 2018.
S&P said, "Given the implications involved, which could ultimately
result in a default on the group's obligations if it's unable to
extended them, we revised our management and governance assessment
to weak from fair. Also, we now view capital structure at the
holding level as a negative rating factor, because it compares
poorly with peers in the sector. The holding company had an
approximately R$391 million cash position as of Sept. 30, 2018,
compared with R$1.2 billion financial debt, of which 85% matures
in the short term. In our view, this situation could be better
solved with fresh equity or an asset sale, provided that the
Invepar uses proceeds to repay debt, alleviating the short-term
maturities at the holding level."

S&P said, "Nevertheless, our base-case scenario assumes that
Invepar will address this through the refinancing of its existing
debt. The operating performance of the group is gradually
recovering after several years of poor performance due the overall
weak economic activity in Brazil. We expect the recent 90-day
extension of the R$997 million debentures originally maturing on
Dec. 11, 2018, will allow some time for the group to structure a
long-term transaction."


=========
C H I L E
=========


CHILE: IMF Says Economy Recovering From a Prolonged Slowdown
------------------------------------------------------------
On November 7, 2018, the Executive Board of the International
Monetary Fund (IMF) concluded the Article IV consultation with
Chile.

The Chilean economy has been recovering from a prolonged slowdown
that started with the decline in copper prices in 2011 and
intensified over the last few years. Reflecting a considerable
rebound in both mining and non-mining, owing also to robust
confidence, economic growth in the first half of 2018 has been the
strongest since 2012. Headline inflation moved close to the
central bank's target of 3 percent in recent months, partly driven
by energy prices and peso depreciation, though core inflation has
been picking up more slowly, dragged down by residual slack in the
labor market. Labor force growth outpaced employment over the past
few quarters, resulting in a higher unemployment rate, though the
quality of job growth improved, with private sector salaried jobs
accounting for an increasing employment share.

After several years of consistent deterioration, the headline
fiscal balance registered a substantial improvement of about one
percent of GDP expected in 2018, owing to stronger copper revenues
and lower expenditure. The central bank started the tightening
cycle in October, raising the policy rate from 2.5 to 2.75
percent, while maintaining an accommodative stance. The banking
system is generally well-capitalized, non-performing loans remain
low, and a new banking law that aims to close the gap with Basel
III minimum solvency requirements has been recently adopted.

GDP growth is projected at 4 percent in 2018. After a strong
performance in the first half of the year, some slowdown is
expected in the second half, in line with a recent softening in
economic activity. As the output gap closes and monetary policy
normalizes, growth is projected to gradually converge to its
medium-term potential of about 3 percent. Inflation is projected
to remain around the central bank's target, supported by the
strong monetary policy institutional framework and anchored
inflation expectations. The announced gradual fiscal consolidation
should be sufficient to stabilize the debt-to-GDP ratio at close
to 27 percent by the early 2020s. With the economic recovery and a
projected worsening in the terms of trade, the current account
deficit is expected to widen to about 2 1/2 percent of GDP in
2018-19, before narrowing to about 2 percent of GDP over the
medium term.

Risks appear balanced. Key downside risks stem from the uncertain
external environment, mainly related to rising protectionism, a
sharp tightening of global financial conditions, and a weaker-
than-expected growth in Chile's main trading partners. A rapid
implementation of the recently-announced structural reforms, and a
stronger-than-expected rebound in investment offer upside risks to
the outlook.

                 Executive Board Assessment

Executive Directors noted that the economic recovery is under way,
the outlook is favorable, and risks are balanced. They agreed that
the economy has been largely shielded from the recent volatility
in the region, supported by strong fundamentals and a free-
floating exchange rate that has played the role of a shock
absorber. Going forward, Directors emphasized the importance of
tackling structural impediments to higher potential growth.

Directors agreed that the announced gradual fiscal consolidation
should enhance policy credibility while striking a balance between
stabilizing debt and addressing development and social spending
needs. They noted that strengthening the fiscal framework via an
appropriate fiscal anchor, or deepening the consolidation in case
of better-than-expected economic performance, could further
enhance credibility and market confidence. In this context,
Directors welcomed the authorities' plans to broaden the mandate
of the fiscal council while ensuring its independence. Directors
also took positive note of the authorities' proposal to streamline
the tax system to make it more efficient and pro-growth. They
underscored the importance of ensuring that the final outcome is
equitable and funded. Directors recommended strengthening tax
administration and broadening the tax base if revenue turns out
lower than projected.

Directors underlined that further monetary policy normalization
should be undertaken cautiously. They emphasized that the
tightening cycle should be guided by analyzing the behavior of
different indicators, in order to gauge the evidence of persistent
convergence of inflation toward the target. In this context,
Directors welcomed the revamped communication framework of the
central bank.

Directors noted that the financial sector remains healthy, but
stressed that macro-financial linkages deserve close monitoring.
They welcomed the recently approved general banking law, which
will bolster the resilience of the banking sector by closing the
gap with Basel III minimum solvency requirements, enhancing
stabilization tools, and improving corporate governance. Directors
highlighted the importance of strengthening the tools for early
intervention and bank resolution, while establishing a national
deposit-insurance scheme funded by member banks. Directors
underlined that cyber security and FinTech regulation frameworks
need to be strengthened, and welcomed the authorities' ongoing
efforts in these areas.

Directors concurred that advancing the structural reform agenda
would support stronger, more inclusive growth. They welcomed the
authorities' commitment to streamline business regulation, improve
the investment climate, increase competitiveness, and reform the
pension system. Directors also emphasized that a broader set of
reforms, such as those aimed at strengthening innovation capacity,
improving the quality of education, deepening labor market
flexibility, and enhancing the business environment for SMEs,
would help improve productivity, increase diversification, and
speed up the transition to advanced economy status.


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


DOMINICAN REPUBLIC: Production Boost Puts 3Q Growth at 6.9%
-----------------------------------------------------------
Dominican Today reports that a delegation from the International
Monetary Fund (IMF) was received by the governor of the Central
Bank of the Dominican Republic (BCRD), Mr. Hector Valdez Albizu.

During the Staff Visit by the monetary institution, a report on
the economic growth registered in the country, which at September
2018 stands at 6.9% of GDP, along with other important data that
have been significant in maintaining macroeconomic stability and
boosting production, placed the country as one of the most
important economies in Latin America.

Valdez Albizu pointed out that economic growth exceeded the BCRD's
estimates, thanks to consumption behavior and private investment,
among other factors, according to Dominican Today.  He stressed
that the growth of private credit, which has remained dynamic, is
12.1% in annual terms, the report notes.

The release of resources from the legal reserve, made by the
Monetary Board, was a fundamental element for the revitalization
of the economy through the increase of credit to the private
sector, especially in the construction sector, explained Valdez
Albizu, the report relays.

In addition, the governor said that foreign direct investment
(FDI) has continued to grow during this year to reach RD$1.8
million as of September, with hotels, bars and restaurants being
among the important investment sectors, the report discloses.

Another relevant fact that the governor conveyed to the IMF
delegation is that remittances have had a remarkable growth so far
this year, in addition to the one in 2017, 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.


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


BANCO DE LA PRODUCCION: Fitch Affirms B- LT IDR, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed Banco de la Produccion S.A. y
Subsidiarias' Long-Term Issuer Default Rating at 'B-', its
Viability Rating at 'b-' and its Short-Term IDR at 'B'. The Rating
Outlook is Stable.

The withdrawal of the Support Rating Floor reflects Fitch's view
that extraordinary support is more likely to come from the bank's
shareholders rather than sovereign authorities. SRFs are not
applicable when the source of potential external support is
institutional.

KEY RATING DRIVERS

IDRs AND VRs

Produbanco's IDRs are driven by its Viability Rating (VR), which
reflects the challenges related to the operating environment and
risk appetite with Fitch's core metrics being sensitive to growth.
Produbanco's VR also factors in Produbanco's ample liquidity and
good asset quality with moderate importance. The agency usually
does not rate banks above the sovereign (B-/Stable), especially in
such a level of sovereign credit risk and regulatory influence.

In Fitch's opinion, Ecuador's weaker economic growth prospects
along with the expected drop in public investment and fiscal
financing limitations remain a constraint to the rating. As of
June 2018, the bank's Fitch Core Capital (FCC) ratio reached
10.3%, which compares unfavorably with international peers,
although Produbanco has no unreserved impaired exposures. By year-
end 2018, the bank's regulatory capital is expected to increase
through additional subordinated debt issuance, which will not be
included in FCC. However, improvement in this ratio will be
sensitive to growth.

Produbanco's asset quality metrics remain strong and outperform
its local peers. As of June 2018, impaired loans reached 1.9% of
the loan book (90 days past due loans: 0.9%) reflecting its
corporate oriented loan book (66%) along with effective
underwriting standards and recovery practices. Reserve coverage
levels remained satisfactory at 206.5% of impaired loans.

Produbanco's liquidity is strong and compares favorably with
similarly rated banks. The loan/deposit ratio has been
consistently low (June 2018: 79.5%) and liquid assets covered
36.5% of total funding and 30.8%, excluding the liquidity fund,
which was established to support liquidity shortages.

Produbanco's profitability metrics have improved as a result of
higher interest income driven by loan growth. As of June 2018, the
bank's operating profit to risk-weighted assets ratio reached 2%
(June 2017: 1.2%). Efficiency remained slightly better than local
peers with a cost to income ratio close to 62%, though this level
remains weak relative to international peers.

SUPPORT RATING

Produbanco's Support Rating (SR) of '5' indicates that Fitch
believes there is a possibility of external support from its
majority shareholder Promerica Financial Corporation (PFC, 56.3%
ownership), but it cannot be relied on due to the relative size of
the subsidiary (22% of consolidated assets excluding non-
controlling interests and 32% including non-controlling interest).
Additionally, country risk represents a significant constraint for
support as Ecuador's country ceiling is assigned at the same level
as the sovereign rating at 'B-'. As such, in Fitch's view the
parent's ability to provide support is weaker than the bank's
stand-alone creditworthiness as indicated by its VR of 'b-'.

RATING SENSITIVITIES

IDRs AND VRs

Produbanco's IDRs and VRs are sensitive to changes in the
sovereign rating. A significant reduction in the banks' earnings
retention or an acceleration of growth that leads to a decrease in
FCC metrics consistently below 9%, along with a material decline
in excess loan loss reserves could also result in negative rating
actions.

SUPPORT RATING

The SR is potentially sensitive to a change in the Country Ceiling
of Ecuador and changes in the ability of PFC to provide timely
support to the subsidiary.

Fitch has affirmed the following ratings:

Banco de la Produccion S.A. y Subsidiarias

  -- Long-Term Foreign Currency IDR at 'B-'; Outlook Stable;

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

  -- Viability Rating at 'b-';

  -- Support Rating at '5'.

Fitch has withdrawn the following ratings:

  -- Support Floor at 'No Floor'.


BANCO PICHINCHA: Fitch Affirms B- LT IDR, Outlook Stable
--------------------------------------------------------
Fitch Ratings has affirmed Banco Pichincha C.A. y Subsidiarias'
Long-Term Issuer Default Rating at 'B-'/ Stable Outlook and its
Viability Rating at 'b-'.

KEY RATING DRIVERS

IDRs AND VR

The banks' Viability Ratings (VR), or standalone creditworthiness,
drive Pichincha's IDRs. Ecuador's operating environment and risk
appetite highly influence Pichincha's VR. Particularly, Fitch
considers the sovereign's high influence on the VR, given the
impact of the government's macroeconomic and regulatory policies
on financial performance. The bank's risk appetite amid Ecuador's
worsening economic conditions could pressure asset quality and
other financial metrics over the next 12 - 24 months.

Pichincha's VR also factors in its strong local franchise and
diverse business model, solid liquidity for its market of
operation, pressured loan quality and limited profitability.

Fitch expects Pichincha's impaired loans ratio to remain high
between 4% and 5% in 2018, exceeding the financial system's
average and that of international peers (similarly rated
commercial banks in dollarized, sub-investment grade operating
environments). This reflects higher proportion of retail lending
in Pichincha's overall portfolio compared with peers.

Pichincha's operating profit/risk weighted assets ratio improved
to 1.17% at June 2018; however, this ratio was among the weakest
of its peers and lower than the financial system's average.
Despite the high net interest margin resulting from the bank's
appetite for the riskier retail and microcredit segments, high
credit costs will continue to limit profitability.

Pichincha has one of the lowest levels of capitalization among the
large financial groups in Ecuador and international peers.
Pichincha's FCC ratio increased to 11.96% at end-June 2018 from
9.77% at end-June 2017, as assets contracted, profitability
improved, and the bank's dividend payment was conservative. Fitch
expects the FCC ratio to become under pressure in 2018-2019,
driven by limited profitability and worsening economic conditions.
However, it will continue to be adequately supported by the
conservative reserves coverage and the shareholders commitment to
maintain a prudent dividend policy.

Pichincha is mainly deposit funded and liquidity is adequate
within the Ecuadorian market. Similar other Ecuadorian large
banks, loans accounted for 89% of deposits at end-June 2018, while
liquid assets covered a sound 33% of deposits and short-term
funding. The bank more than meets regulatory liquidity
requirements on a consistent basis and sets internal policies at a
higher level than those required locally.

SUPPORT RATING AND SUPPORT RATING FLOOR

Fitch affirmed Pichincha's Support Rating (SR) at '5' and Support
Rating Floor (SRF) at 'NF', reflecting that despite the bank's
strong market share and local franchise, Fitch believes that
sovereign external support cannot be relied upon due to Ecuador's
limited funding flexibility as well as the lack of a lender of
last resort.

RATING SENSITIVITIES

IDRs AND VR

Pichincha's IDRs and VR are sensitive to changes in the sovereign
rating. Potential upgrades of the IDRs and VR are unlikely in the
foreseeable future. Conversely, a significant reduction in the
bank's earnings retention or an acceleration of growth that leads
to a decrease in FCC metric consistently below 9%, along with a
material decline in excess loan loss reserves could also result in
negative rating actions.

SUPPORT RATING AND SUPPORT RATING FLOOR

Ecuador's propensity or ability to provide timely support to these
banks is not likely to change given the sovereign's low sub-
investment-grade IDR. As such, the SR and SRF have no upgrade
potential.

Fitch has affirmed the following ratings:

Pichincha

  -- Long-Term Foreign Currency IDR at 'B-'; Outlook Stable;

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

  -- Viability Rating at 'b-';

  -- Support at '5';

  -- Support Floor at 'No Floor'.


=================
G U A T E M A L A
=================


BANCO INDUSTRIAL: Moody's Affirms Ba1 Deposit Rating
----------------------------------------------------
Moody's Investors Service affirmed all ratings and assessments
assigned to Guatemala's Banco Industrial, S.A., Industrial Senior
Trust, and Industrial Subordinated Trust. The outlook remains
stable.

The following ratings and assessments were affirmed:

Banco Industrial, S.A.:

Long term local currency deposit rating of Ba1, stable outlook

Long term foreign currency deposit rating of Ba2, stable outlook

Short term local and foreign currency deposit ratings of Not Prime

Foreign currency junior subordinate debt rating of B3 (hyb)

Long and short-term local and foreign currency counterparty risk
ratings of Ba1 and Not Prime

Long and short-term counterparty risk assessments of Ba1(cr) and
Not Prime(cr)

Baseline credit assessment of ba3

Adjusted baseline credit assessment of ba3

Outlook remains stable

Industrial Senior Trust:

Backed long term foreign currency senior debt rating of Ba1,
stable outlook

Outlook remains stable

Industrial Subordinated Trust:

Backed long term foreign currency subordinated debt rating of B1

RATINGS RATIONALE

The affirmations capture improvements in capitalization, which
offset a moderate deterioration in asset quality in recent years.
Notwithstanding the improvements, capitalization remains modest by
global standards while asset quality remains strong despite the
increase in delinquencies. The bank's ratings also incorporate its
stable and robust earnings, its substantial liquid resources, and
a sound funding structure, supported by an ample base of low-cost
core deposits.

Reflecting the bank's solid risk management, its focus on low-risk
commercial loans, which account for 80% of its total portfolio,
and historically prudent loan growth, nonperforming loans (NPL)
remained at a low 1.25% of gross loans as of September 2018,
despite increasing steadily in recent years, from 0.5% in 2013.
The deterioration has accelerated in the past two years driven by
impairments in the agribusiness and retail customer segments in a
context of lower commodity prices and a deceleration in
Guatemala's economic growth. In line with the increase in
delinquencies, loan loss reserve coverage of problem loans has
fallen from a peak of 283% in 2013, though it remains ample at 1.5
times NPLs as of September 2018, providing solid buffers against
expected credit losses.

However, the bank exhibits very high borrower concentrations, with
its largest loan exposures well above 100% of tangible common
equity, which can lead to higher asset quality volatility. In
addition, loan growth accelerated during the 12 months ended
September 2018 to 11%, or 1.8 times the system average. If that
trend continues, it could drive a further increase in asset risks.
A rapid deterioration in the exchange rate would also negatively
pressure asset quality, as about a quarter of the total loan
portfolio is denominated in US dollars and extended to local
currency earners. (Another 34% of the portfolio is also
denominated in dollars but directed towards earners of hard
currency, limiting the borrowers' exposure to FX risk.)
Banco Industrial's capitalization has been steadily increasing
from just about 6.5% of adjusted risk weighted assets at year-end
2015, although it remains modest as of September 2018 at around
8%. The improvement was driven by a series of capital injections
between 2016 and 2018 totaling $145 million, approximately, or 13%
of tangible common equity as of September, coupled with stable
earnings and subdued loan growth until recently. Net of capital
injections, dividend payouts averaged just 20% between 2016 and
2018, well below the 57% posted in 2015. With loan growth starting
to accelerate, however, Moody's does not anticipate significant
further improvements to the bank's capital ratio.

Banco Industrial's profitability has been consistently strong,
with return on assets ranging between 1.3% and 1.5% over the past
four and a half years. Earnings have been supported by stable net
interest margins coupled with well-managed operating and credit
costs. Going forward, profitability will benefit from rising
interest rates as the bank's retail deposit funding is relatively
insensitive to rate changes.

Industrial's dominant 25% market share of Guatemala's total
deposits provides it with a large base of relatively stable and
low-cost funding. In addition, deposits are highly granular, with
the largest 20 depositors comprising just 14% of the total.
Deposits are, however, skewed toward short-term maturities. To
fund longer-term assets, Industrial issues senior and subordinated
debt. As a result, market funds stood at 25% of tangible banking
assets as of September 2018, also including bank borrowings. The
bank is particularly reliant on market funding to finance dollar
lending, as its dollar loan-to-deposit ratio stands at a very high
166%, though slightly lower than the Guatemalan banking system as
a whole, which exposes the bank to potential refinancing risks in
foreign currency.

However, this risk is partially mitigated by the bank's
substantial holdings of liquid assets. These account for about 40%
of tangible banking assets, and consist largely of marketable Ba1-
rated Guatemalan government securities, bank deposits and cash.
The bank's moderate total loan-to-asset (53%) and loan-to-deposit
(84%) ratios support both liquidity and overall financial
flexibility.

The bank's Ba1 local currency deposit rating benefits from two
notches of uplift from the ba3 BCA, incorporating Moody's
assessment of very high likelihood of financial support from the
Guatemalan government in case of need. This assessment is based on
Banco Industrial's systemic importance as the largest bank in the
country. The bank's Ba2 foreign currency deposit rating is
constrained by Guatemala's Ba2 sovereign ceiling for foreign
currency deposits, which is one notch below the government bond
rating.

The affirmations of Industrial Senior Trust and Industrial
Subordinated Trust's ratings are in line with the affirmations of
Banco Industrial's local currency deposit rating and adjusted BCA
respectively as the obligations of both vehicles are
unconditionally guaranteed by the bank. The three-notch
differential between Banco Industrial's junior subordinated debt
rating and the adjusted BCA reflects the notes' non-cumulative
coupon -skip mechanism and optional deferral features.

WHAT COULD CAUSE THE RATINGS TO MOVE UP OR DOWN

The subordinated and junior subordinated ratings could be lifted
in the case of a significant and sustained further strengthening
of the bank's core capitalization, coupled with a recovery of
asset quality. Unless Guatemala's Ba1 sovereign rating has also
been upgraded, however, the bank's deposit and senior debt ratings
would be unaffected as they are currently in line with the
sovereign rating.

Both the bank's and the trusts' ratings could face downward
pressure if the bank's adjusted tangible common equity ratio falls
below 8% on a sustained basis, unless the deterioration in capital
is offset by a decrease in delinquencies to below 0.75% of gross
loans. Further, ratings could face downward pressure if NPLs
increase above 1.5% of gross loans, unless the TCE ratio increases
to above 10%. The deposit and senior debt ratings would also be
lowered if Guatemala's government bond rating were downgraded.

The last rating action on Banco Industrial, S.A. was on June 21,
2018.

The last rating action on Industrial Senior Trust was on July 5,
2016.

The last rating action on Industrial Subordinated Trust was on
June 3, 2015.

The principal methodology used in these ratings was Banks
published in August 2018.


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


JAMAICA: Net International Reserves Declines
--------------------------------------------
RJR News reports that Jamaica's Net International Reserves (NIR)
dipped last month with a decline of US$101 million.

The island's NIR is now at US$ 2.9 billion, according to RJR News.

The Bank of Jamaica says the reserves are still strong and able to
withstand any major external shocks, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Sept. 27, 2018, S&P Global Ratings revised its outlook on
Jamaica to positive from stable. At the same time, S&P Global
Ratings affirmed its 'B' long- and short-term foreign and local
currency sovereign credit ratings, and its 'B+' transfer and
convertibility assessment on the country.


JAMAICA: BOJ Says Risks to Financial Stability Remained Low
-----------------------------------------------------------
RJR News reports that the Bank of Jamaica (BOJ), in its latest
macro prudential report is reporting that risks to financial
stability remained low during the June quarter.

The Central Bank said reduction in the Government's debt and the
accommodative monetary policy stance influenced a continued
downward trend in domestic interest rates and strong holdings of
liquid assets by banks, according to RJR News.

Against this backdrop, the Bank highlighted that the financial
system demonstrated continued expansion of domestic credit during
the quarter, the report notes.

The report also noted that despite the steady uptick in private
sector debt levels, household and non-financial corporate
entities' overall debt-burden are assessed as sustainable, the
report notes.

Additionally, financial institutions have not demonstrated any
significant extension in their financial leverage, the report
relays.

Meanwhile, a macroeconomic stress-testing model was used to assess
the resilience of the banking sector to macroeconomic shocks, the
report says.

The report discloses that the results showed that the commercial
banking sector remained resilient to adverse shocks to the real
economy and financial markets.

BOJ said this resilience is due to their strong capital position
as well as the sector's ability to generate interest income under
all the stress scenarios examined, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Sept. 27, 2018, S&P Global Ratings revised its outlook on
Jamaica to positive from stable. At the same time, S&P Global
Ratings affirmed its 'B' long- and short-term foreign and local
currency sovereign credit ratings, and its 'B+' transfer and
convertibility assessment on the country.


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


PARAGUAY: Floods Force 6,000 Families From Their Homes
------------------------------------------------------
EFE News reports that the number of families evacuated from poor,
low-lying areas in Asuncion due to floods caused by the rising
Paraguay River has increased to 6,000, authorities said.

The river reached a level of 5.98m (20ft) Nov. 12 and is expected
to climb to 7m next month, according to EFE News.

Another 1,000 families were forced to flee homes in the central
and southern provinces of Misiones, San Pedro and Concepcion by
"flash floods" that followed heavy rains, the chief of staff of
the department of emergency management, Miguel Kurita, told EFE.

The number of flood refugees in the Paraguayan capital has doubled
since the end of October, forcing authorities to relocate families
on streets and squares in Asuncion due to a lack of suitable
spaces, the report notes.

To put an end to the annual massive displacements, the Paraguayan
government plans the construction of nearly 10,000 units of public
housing over the next 10 years in poor Asuncion neighborhoods
prone to flooding, the report adds.

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


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


INTRADE LOGISTICS: Monthly Payment to Unsecureds Reduced to $866
----------------------------------------------------------------
Intrade Logistics Corp. filed with the U.S. Bankruptcy Court for
the District of Puerto Rico an amended chapter 11 plan of
reorganization.

Under the amended plan, holders of Allowed General Unsecured
Claims, including the claims related to Debtor's executory
contracts and unexpired leases rejected during the pendency of the
case, but excluding the claims of Debtor's Affiliates, totaling
$1,607,885.62 will be paid in full satisfaction of their Claims
15% thereof, through 60 equal consecutive monthly installments of
$866.71 to be distributed in proportion to each claim, commencing
on the Effective Date and continuing on the 30th day of the
subsequent 59 months.

The previous version of the plan proposed to pay unsecured
creditors 60 equal consecutive monthly installments of $950.03.

A copy of the Amended Plan is available for free at:

     http://bankrupt.com/misc/prb18-03828-11-47.pdf

             About Intrade Logistics Corp.

Headquartered in Toa Baja, Puerto Rico, Intrade Logistics Corp. is
in the wine and distilled beverages business.

Intrade Logistics Corp. filed a Chapter 11 Petition (Bankr. D.P.R.
Case No. 18-03828) on July 5, 2018.  In the petition signed by
Rolando Fernandez, president, the Debtor disclosed $1.13 million
in assets and $1.88 million in liabilities.  CHARLES A CURPILL,
PSC LAW OFFICES, led by principal Charles A. Cuprill Hernandez, is
the Debtor's counsel.


KONA GRILL: Marcus Jundt and Steven Schussler Appointed as Co-CEOs
------------------------------------------------------------------
Kona Grill, Inc.'s Board of Directors appointed Marcus Jundt and
Steven Schussler as co-chief executive officers of the Company.

Marcus Jundt is one of the founders of the Kona Grill concept and
previously served as the Company's CEO from 2006 to 2009.  Steven
Schussler is the founder of several successful concepts, among the
most noticeable are Rainforest Cafe, T-Rex Cafe, Yak & Yeti, The
Boathouse, and others.  Both Messrs. Jundt and Schussler are
currently directors of the Company.

"The Board of Directors believes that the combined leadership and
experience of Marcus and Steve will revitalize the Kona Grill
brand as we focus on what has made this brand successful over the
years," said Berke Bakay, the Company's executive chairman of the
Board.

"We thank Jim Kuhn for his time with the Company and wish him well
in his future endeavors," Bakay concluded.

"I thoroughly enjoyed my time at Kona Grill working with the team
and wish the Company all the best in the future," said Jim Kuhn.

Effective Nov. 6, 2018, James Kuhn is no longer chief executive
officer of the Company and is no longer employed by the Company.
In connection with his departure, Mr. Kuhn will receive severance
and other benefits pursuant to the terms of his Employment
Agreement.

                      About Kona Grill

Kona Grill, Inc., headquartered in Scottsdale, Arizona, Kona
Grill, Inc. -- http://www.konagrill.com/-- currently owns and
operates 44 restaurants in 22 states and Puerto Rico.  Its
restaurants feature a global menu of contemporary American
favorites, award-winning sushi and craft cocktails.  Additionally,
Kona Grill has two restaurants that operate under a franchise
agreement in Dubai, United Arab Emirates, and Vaughan, Canada.

Kona Grill incurred a net loss of $23.43 million in 2017 and a net
loss of $21.62 million in 2016.  As of Sept. 30, 2018, Kona Grill
had $78.59 million in total assets, $75.74 million in total
liabilities, and $2.84 million in total stockholders' equity.

The Company has incurred losses resulting in an accumulated
deficit of $79.7 million, has a net working capital deficit of
$7.6 million and outstanding debt of $37.8 million as of Dec. 31,
2017.  The Company said in its 2017 Annual Report that these
conditions together with recent debt covenant violations and
subsequent debt covenant waivers and debt amendments, raise
substantial doubt about its ability to continue as a going
concern.


KONA GRILL: Incurs $5.1 Million Net Loss in Third Quarter
---------------------------------------------------------
Kona Grill, Inc., has filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q reporting a net loss
of $5.11 million on $37.43 million of revenue for the three months
ended Sept. 30, 2018, compared to a net loss of $3.32 million on
$44.39 million of revenue for the three months ended Sept. 30,
2017.

For the nine months ended Sept. 30, 2018, the Company reported a
net loss of $8.57 million on $121.79 million of revenue compared
to a net loss of $11.02 million on $136.59 million of revenue for
the same period during the prior year.

As of Sept. 30, 2018, Kona Grill had $78.59 million in total
assets, $75.74 million in total liabilities, and $2.84 million in
total stockholders' equity.

The Company has incurred losses resulting in an accumulated
deficit of $88.5 million and outstanding borrowings under a credit
facility of $33.5 million as of Sept. 30, 2018.  As of Sept. 30,
2018, the Company has cash and cash equivalents and short-term
investment balance totaling $4.0 million and net availability
under the credit facility of $2.2 million, subject to compliance
with certain covenants.  The Company has implemented various
initiatives to increase sales and reduce costs to increase
profitability.

According to Kona Grill, "Management expects to utilize existing
cash and cash equivalents and short-term investments, along with
cash flow from operations, and the available amounts under the
credit facility, to provide capital to support the business, to
maintain and refurbish existing restaurants, and for general
corporate purposes.  Any reduction of cash flow from operations or
an inability to draw on the credit facility may cause the Company
to take appropriate measures to generate cash.  The failure to
raise capital when needed could impact the financial condition and
results of operations.  Additional equity financing, to the extent
available, may result in dilution to current stockholders and
additional debt financing, if available, may involve significant
cash payment obligations or financial covenants and ratios that
may restrict the Company's ability to operate the business.  There
can be no assurance that the Company will be successful in its
plans to increase profitability or to obtain alternative capital
and financing on acceptable terms, when required or if at all."

                     Management's Comments

"Our efforts to achieve higher profits for fiscal year 2018
continue to take shape.  During the first nine months of 2018,
adjusted EBITDA increased 66% compared to the same period last
year.  The higher profitability is a result of Company initiatives
implemented earlier this year and ongoing projects framed around
our mission to make every experience exceptional for our guests,"
said Marcus Jundt, co-chief executive officer of Kona Grill.

"With Steve Schussler's and my recent appointment as Co-Chief
Executive Officers, our focus is on revitalizing the Kona Grill
brand and the unique aspects which has made this brand successful
over the years.  These areas include becoming once again America's
best happy hour with items that provide a great value proposition
as well as genuine hospitality and a passion for service," he
continued.

"Our focus for the remainder of 2018 and fiscal year 2019 is
driving guests into our restaurants.  We recently launched our
Konavore Rewards Program, implemented various marketing efforts,
including mobile marketing and a Kona Grill app, and revamped our
Happy Hour menu offerings.  For the holiday season, we are rolling
out a new gift card promotion with a strong bounce back offer to
support first quarter 2019 sales," he continued.

As part of our ongoing evaluation of underperforming
restaurants, we made the decision to close two restaurants during
the third quarter.  As we monitor our restaurants for
underperformance, we continue to engage in discussions with our
landlords regarding rent abatement, closing certain locations or
strategic alternatives.  Our success in addressing these
opportunities and issues will put us in a better long-term
financial position.  We were in compliance with our financial
covenants as of September 30, 2018," he concluded.

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

                       https://is.gd/T1ih9s

                         About Kona Grill

Kona Grill, Inc., headquartered in Scottsdale, Arizona, Kona
Grill, Inc. -- http://www.konagrill.com/-- currently owns and
operates 44 restaurants in 22 states and Puerto Rico.  Its
restaurants feature a global menu of contemporary American
favorites, award-winning sushi and craft cocktails.  Additionally,
Kona Grill has two restaurants that operate under a franchise
agreement in Dubai, United Arab Emirates, and Vaughan, Canada.

Kona Grill incurred a net loss of $23.43 million in 2017 and a net
loss of $21.62 million in 2016.  As of June 30, 2018, Kona Grill
had $85.02 million in total assets, $77.17 million in total
liabilities and $7.85 million in ttoal stockholders' equity.

The Company has incurred losses resulting in an accumulated
deficit of $79.7 million, has a net working capital deficit of
$7.6 million and outstanding debt of $37.8 million as of Dec. 31,
2017.  The Company said in its 2017 Annual Report that these
conditions together with recent debt covenant violations and
subsequent debt covenant waivers and debt amendments, raise
substantial doubt about its ability to continue as a going
concern.


STONEMOR PARTNERS: Expects Net Loss to Stay Flat in Q1 2018
-----------------------------------------------------------
StoneMor Partners L.P. reported preliminary financial results for
the three months ended March 31, 2018.  Under its current credit
agreement, the Partnership was required to file its Form 10-Q for
the first quarter by Oct. 15, 2018.  As reported on Oct. 17, 2018,
the Partnership is experiencing additional delays filing its Form
10-Q for the period ending March 31, 2018 due primarily to the
implementation and application of Accounting Standard Codification
606, Revenue from Contracts with Customers.  The failure to file
the Form 10-Q by Oct. 15, 2018 constituted an event of default
under its credit agreement.  The Partnership is currently working
with its lenders to resolve the issue and expects to obtain the
necessary waiver.  However, there can be no assurance that the
lenders will ultimately provide the waiver, the terms on which it
will be provided or the impact, if any, there will be on the
Partnership's financial statements for the period ended March 31,
2018 or for any other period.

Effective Jan. 1, 2018, the Partnership adopted ASC 606, Revenue
from Contracts with Customers, using the modified retrospective
method and applying the new standard to all contracts with
customers.  Therefore, the comparative financial information for
the periods in 2017 has not been restated and continues to be
reported under the accounting standards in effect for that period.
On a preliminary basis, the Partnership reported the following
results:

   * Revenues are expected to be approximately $77.9 million
     compared to $82.9 million for the prior year period.  The
     decline was due primarily to an unfavorable comparison to the
     first quarter of 2017 when revenues benefited from a large
     backlog of preneed cemetery merchandise that became available
     to be serviced and a decline in revenue from funeral home
     services, partly the result of divested properties.  As noted
     above, the Partnership applied the modified retrospective
     method of adoption of ASC 606.  Had ASC 606 been applied to
     revenue for the quarter ended March 31, 2017, revenue as
     reported would have been reduced by approximately $1.2
     million.

   * First quarter net loss is expected to be flat over the prior
     year period at $8.6 million.  Losses continue to be affected
     by higher corporate overhead related to professional fees
     associated with delayed financial filings and legal costs.

   * Merchandise trust value at March 31, 2018 is expected to be
     $508.7 million compared to $515.5 million at Dec. 31, 2017.
     The decline was primarily the result of a reduction in the
     fair value of certain of the Partnership's investments
     partially offset by net contributions to the trusts and trust
    net income.

   * Deferred revenue at March 31, 2018 is expected to be $902.9
     million compared to $912.6 million at Dec. 31, 2017.  The
     decline was primarily the result of changes in fair values of
     merchandise trusts and changes in trust net income which are
     both deferred for accounting purposes.

   * As of March 31, 2018, the Partnership is expected to have
     $10.4 million of cash and cash equivalents and $322.2 million
     of total debt, including $154.4 million outstanding under its
     revolving credit facility.

Joe Redling, StoneMor's president and chief executive officer
said, "Our first quarter financial results, while preliminary,
highlight challenges we are currently addressing, which include
filing our financial statements in a timely manner and a need to
reduce costs and improve sales productivity.  Since I joined
StoneMor three months ago, we have established a new decentralized
operating structure to drive improvements in accountability,
efficiency and overall profitability across our network of
properties.  We are also implementing a comprehensive expense
reduction effort and will have more details to disclose in coming
quarters on these profitability and cost control efforts.  We are
working hard to turn around the business and better position
StoneMor for future opportunities."

                      About StoneMor Partners

StoneMor Partners L.P., headquartered in Trevose, Pennsylvania --
http://www.stonemor.com/-- is an owner and operator of cemeteries
and funeral homes in the United States, with 322 cemeteries and 91
funeral homes in 27 states and Puerto Rico.  StoneMor's cemetery
products and services, which are sold on both a pre-need (before
death) and at-need (at death) basis, include: burial lots, lawn
and
mausoleum crypts, burial vaults, caskets, memorials, and all
services which provide for the installation of this merchandise.

Stonemor reported a net loss of $75.15 million on $338.2 million
of total revenues for the year ended Dec. 31, 2017, compared to a
net loss of $30.48 million on $326.2 million of total revenues for
the year ended Dec. 31, 2016.  As of Dec. 31, 2017, Stonemor had
$1.75 billion in total assets, $1.66 billion in total liabilities
and $91.69 million in total partners' capital.

                           *    *    *

As reported by the TCR on July 10, 2018, Moody's Investors Service
downgraded Stonemor Partners L.P.'s Corporate Family rating to
'Caa1' from 'B3'.  The Caa1 CFR reflects Moody's expectation for
breakeven to modestly negative free cash flow (before
distributions), ongoing delays in filing financial statements and
Stonemor's significant reliance on its revolving credit facility
for liquidity in 2018.

In April 2018, S&P Global Ratings affirmed its 'CCC+' corporate
credit rating on StoneMor Partners L.P.  S&P said, "The rating
affirmation reflects our expectation that the company can generate
operating cash flow of approximately $25 million in 2018 to
support operating needs for at least another year."


                            ***********


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

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

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


                            ***********


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

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

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

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

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

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


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