/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/190401.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, April 1, 2019, Vol. 20, No. 65 Headlines B R A Z I L COMPANHIA ENERGETICA: S&P Affirms 'B' GS Rating, Outlook Now Stable MINERVA S.A.: S&P Affirms BB- Global Scale ICR, Outlook Stable C A Y M A N I S L A N D S ODEBRECHT DRILLING VIII/IX: S&P Affirms 'B-' Rating, Outlook Stable ODEBRECHT OFFSHORE: S&P Affirms CCC+ Rating, Outlook Now Stable C H I L E LATAM AIRLINES 2015-1: S&P Affirms 'BB-' ICR, Put on Watch Neg. D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: American Airlines Pull 9 Boeing Out of Airport DOMINICAN REPUBLIC: Big Firms Deny Push to Nix Severance Pay DOMINICAN REPUBLIC: Northwest Farmers Get Rains DOMINICAN REPUBLIC: Pres. Medina Back After Meeting with Trump E L S A L V A D O R BANCO AGRICOLA: Fitch Affirms Long-Term IDR at 'B', Outlook Stable BANCO DAVIVIENDA: Fitch Affirms 'B' Long-Term IDR, Outlook Stable J A M A I C A JAMAICA: Advancing Integrated Resource Plan M E X I C O BANCO AHORRO: Moody's Gives B1 LT Deposit Rating, Outlook Stable P U E R T O R I C O PUERTO RICO: Court Ruling in Bankruptcy Fans Revenue Bond Fears PUERTO RICO: White House Backing Oversight Board SKYTEC INC: Logistic Systems Object to Disclosure Statement T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: PM Did Not Negotiate Gas Prices, Says Minister V I R G I N I S L A N D S LIMETREE BAY: S&P Affirms BB- Sr. Term Loan Rating, Outlook Neg. X X X X X X X X [*] BOND PRICING: For the Week March 25 to March 29, 2019 - - - - - =========== B R A Z I L =========== COMPANHIA ENERGETICA: S&P Affirms 'B' GS Rating, Outlook Now Stable ------------------------------------------------------------------- On March 28, 2019, S&P Global Ratings revised the outlook to stable from positive on its ratings on Companhia Energetica de Minas Gerais - CEMIG (CEMIG) and on its operating subsidiaries, Cemig Distribuicao S.A. (CEMIG-D) and Cemig Geracao e Transmissao S.A. (CEMIG-GT). S&P also affirmed the 'B' global scale and 'brA+' Brazil national scale ratings on all three entities. The 'b' stand-alone credit profile (SACP) remains unchanged. At the same time, S&P affirmed its 'B' issue-level rating on CEMIG-GT's $1.5 billion bonds due 2024. The rating affirmation and the outlook revision reflect S&P's expectation that the group's deleveraging will depend mostly on its ability to sell some assets, which is taking longer than it expected. Although S&P still expects CEMIG's credit metrics to improve gradually over the next few years, following its initiatives to improve its overall operating efficiency, including its voluntary workforce retirement program, a substantial debt reduction would require the company to divest some of its assets. In 2017, CEMIG announced a R$8 billion divestiture program, but at this point, given market conditions and investor appetite, the group wasn't able to sell its stakes in Light S.A. (not rated) and in the Santo Antonio and Belo Monte hydro projects. These are the main non-core assets that CEMIG plans to sell, and in S&P's view, would bolster credit measures, given not only the equity value to be received but the release of almost R$6 billion that CEMIG is guaranteeing. In addition, CEMIG-D faced higher electricity costs in the past quarters, while the rate flag mechanism isn't sufficient to cover the company's working capital needs. S&P said, "Given that we expect these higher costs to be incorporated into rates in the annual reset to occur in May 2019, cash flow generation should remain weaker during the first half of this year, but improving afterwards. Therefore, we expect CEMIG to have a lower cushion on its financial covenants in the next few quarters." Recently, CEMIG has announced that it will increase its stake in Renova Energia S.A., which won't involve any cash outflows, because the group will use existing credits from the power purchase agreements with Renova to increase the stake. Therefore, S&P views this transaction as neutral for CEMIG from a credit perspective. MINERVA S.A.: S&P Affirms BB- Global Scale ICR, Outlook Stable -------------------------------------------------------------- S&P Global Ratings affirmed its 'BB-' global scale issuer credit and issue-level ratings on Minerva S.A., as well as its 'brAA+' national scale rating on the company. The outlook is stable. S&P forecasts FOCF generation of above R$400 million per year, leading to debt to EBITDA of 3.5x-4.0x in 2019 and 3.0x-3.5x in 2020 and funds from operations (FFO) to debt of 10%-15% and 15%-20% for the same years. The affirmation reflects S&P's view that Minerva will continue deleveraging by internal cash generation and repaying debt, supported by its expanded business that now includes 25 plants in five countries. S&P expects debt to EBITDA of about 3.5x in 2019 and about 3.2x in 2020, compared to 4.0x in 2018, and FOCF generation of more than R$400 million per year. =========================== C A Y M A N I S L A N D S =========================== ODEBRECHT DRILLING VIII/IX: S&P Affirms 'B-' Rating, Outlook Stable ------------------------------------------------------------------- S&P Global Ratings affirmed its 'B-' issue-level rating on Odebrecht Drilling Norbe (ODN) VIII/IX's tranche 1 senior secured notes. The outlook remains stable. S&P also revised the recovery rating of the notes to '3', reflecting its expectation for 50%-70% recovery in the event of a default, from '4'. S&P said, "The stable outlook reflects our expectations that the two assets will receive charter payments corresponding to 98% economic uptime, resulting in a debt service coverage ratio (DSCR) of around 1.50x in 2019. The rating affirmation reflects our expectation that ODN VIII/IX's assets will continue to post sound operating performance (as seen in the expectation of an average operational uptime of 94%) and predictable cash flows, sufficient to maintain an average DSCR of 1.35x between 2019 and the 2021 maturity of the tranche 1 of the notes." ODEBRECHT OFFSHORE: S&P Affirms CCC+ Rating, Outlook Now Stable --------------------------------------------------------------- On March 28, 2019, S&P Global Ratings revised its outlook on the 'CCC+' issue-level rating on Odebrecht Offshore Drilling Finance Ltd's first tranche of the 6.72% senior secured notes due 2022 to stable from positive. At the same time, S&P affirmed the debt rating, and the '4' recovery rating on the notes remains unchanged. S&P said, "The outlook revision reflects our understanding that the upside that could come from the recontracting of Norbe VI didn't materialize, given that the vessel is likely to stay idle for more than one year. We maintained the 'CCC+' issue-level rating because the project's financial performance is unsustainable, in our view. In the absence of a new contract for Norbe VI, we estimate that all reserve accounts will be fully depleted before the 2022 maturity of tranche 1." At the time of the 2017 refinancing, the new structure contemplated a cushion for a one-year idle period for Norbe VI. As such, aside from the minimum reserve account, the project faces lower principal repayments in 2019 under the tranche 1 maturity schedule. Despite the sound performance of ODN I and ODN II, S&P expects the project's debt service coverage ratios (DSCR) to be below 1.0x starting in 2020 and OODFL to use its reserve accounts to meet obligations on a timely basis. ========= C H I L E ========= LATAM AIRLINES 2015-1: S&P Affirms 'BB-' ICR, Put on Watch Neg. --------------------------------------------------------------- On March 28, 2019, S&P Global Ratings placed its issue-level ratings on Chile-based Latam Airlines' series 2015-1 EETCs on CreditWatch with negative implications. At the same time, S&P affirmed its 'BB-' global scale issuer credit and 'B+' issue-level ratings on Latam. S&P also affirmed its 'clBBB' Chilean national scale credit issuer and 'clBBB-' issue-level ratings on Latam. The CreditWatch placement reflects the increased legal uncertainty relating to the protections provided by the CTC in Brazil following the domestic court's decision to allow Avianca Brasil (not rated) to keep possession of aircraft beyond the 30-day stay period set forth in the agreement. Avianca Brasil filed for bankruptcy in December after lessors requested the repossession of their aircraft, given that the airline was noncurrent on monthly payments. The terms of CTC, which Brazil ratified in 2012, are one of S&P's base-case assumptions for rating Latam's EETCs. This is because they establish international interest in mobile equipment and aircraft equipment-specific protocols. Therefore, in the hypothetical scenario in which Latam goes bankrupt, this legal precedent raises concerns whether creditors would be able to repossess their aircraft registered in the country in a timely fashion. Latam's EETCs have a unique structure because they're exposed to two jurisdictions. Out of 17 aircraft under this structure, Latam subleases seven of them to its Brazilian subsidiary, TAM S.A. The mitigating factor is that the majority of planes backing the EETCs are located in Chile, because of S&P's view of the country's stronger and more predictable judicial system relating to insolvency proceedings and creditor rights, although it hasn't ratified the CTC. In addition, the EETCs are supported by a 21-month liquidity facility, three months longer than is typical for this type of debt, which could pay timely cash interest in a bankruptcy scenario. S&P said, "Despite the deterioration of the legal and regulatory factors in Brazil that may weaken the certificates' creditworthiness, we affirmed our issuer credit rating on Latam. In addition, in a distress scenario for Latam, we still view a high likelihood of its debt restructuring in a bankruptcy reorganization, rather than liquidation, given the airline's importance to several economies in Latin America. Also, the pool of assets in this transaction remains liquid and attractive in the secondary market. As a result, our loan-to-value analysis remains unchanged." The credit rating affirmation reflects Latam's resilient operating performance amid challenging macroeconomic and industry conditions in 2018. Latam posted adjusted EBITDA margin of 22.5% in 2018, compared with 22.9% in 2017. Such a margin reflects still rational conditions in the regional airline industry, especially in Brazil, in terms of capacity addition, allowing airlines to pass cost increases and currency depreciations to average airfares. Margin resilience also reflects Latam's cost-reduction initiatives since 2016, as well as benefits from the company's new sales model with fare segmentation strategy. S&P said, "In the next two years, we expect Latam's EBITDA margins to rise to 23%-25% thanks to improving demand, lower fuel prices, and the company's efforts to continue increasing asset utilization and revenue from ancillaries. We expect Latam to expand its capacity in Brazil by about 3% and international operations by 4% in 2019." The company's plan to raise capacity by roughly 9% in the Spanish Speaking Countries (SSC), especially in Peru and Colombia, follows the solid demand in the region, given that some players in these jurisdictions have ceased operations. In addition, a competitor, Avianca Holding S.A. (B/Stable/--), has announced it would focus on international routes in Peru, reducing its domestic operations in the country. On the other hand, fiercer competition, especially in SSC, from low-cost carriers and low predictability in Argentina because of its still volatile macroeconomic conditions are some of the challenges Latam will be facing for the next few years. In the medium term, S&P believes insufficient infrastructure in some countries of the region may prevent air travel demand from booming. This is the case in Peru, whose main airport in Lima is having trouble accommodating the high-growth demand. The more favorable operating conditions, combined with Latam's business strengths, such as its extensive route network and leadership in several regional markets, support S&P's expectation of the airline's FOCF generation in the next two years. Another contributing factor is the reduction in fleet commitments of about $2.2 billion for 2018-2021, despite necessary capex for cabin retrofits, which are in line with the company's new sales model. S&P believes Latam will be able to fund these expenditures with its internal cash flows. However, we assume Latam will continue accessing capital markets for debt refinancing and funding needs. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: American Airlines Pull 9 Boeing Out of Airport ------------------------------------------------------------------ Dominican Today reports that several Boeing 737 Max 8 and 9 aircraft of American Airlines that operated daily flights from US territory to various Dominican Republic airports were transferred to the US after the Federal Aviation Administration (FAA) banned its operations. American Airlines told Listin Diario that all Boeing 737 Max, 8 and 9 aircraft that covered the routes through Dominican airports were pulled from service and sent to US soil, according to Dominican Today. The measure comes after the crash of Ethiopian Airlines plane near Nairobi, Kenya, shortly after takeoff, killing 157 people, and the Lion Air plane that went down in the sea near Indonesia, killing all 189 on board, the report notes. DOMINICAN REPUBLIC: Big Firms Deny Push to Nix Severance Pay ------------------------------------------------------------ Dominican Today reports that two business leaders denied heading a push to eliminate the severance pay, the unions' main allegation, which prompted a walkout from the talks leading to a reform of the Dominican Labor Code. "That's a fable. We have not made any proposal about severance pay. What we have ratified all the time is that we will not attempt against any of the acquired rights of any worker," said National Business Council (CONEP) president Pedro Brache, according to Dominican Today. Labor also drew a response from Industries Association (AIRD) executive vice president Circe Almanzar: "That's what they say. What we want is to modernize the Code as nearly all countries have done," the report notes. Never Recover National Unions Federation (CNUS) President Rafael (Pepe) Abreu, said labor made that decision because "if the severance pay is lost it will never be recovered" and would put the future of all workers at risk, 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: Northwest Farmers Get Rains ----------------------------------------------- Dominican Today reports that the local irrigation canal board president said the recent rains have increased the water supply to the farms in various areas. Jose Eugenio de la Rosa told Diario Libre that they hope the rains will continue to supply the water for banana, rice and other crops in the Northwest, according to Dominican Today. "Our members are receiving 100% of the water to irrigate bananas, rice and other farm goods, which we hope will hold," Mr. de la Rosa said, the report notes. He added that in past months, hundreds of hectares both bananas and rice couldn't be planted because of the lack of water, the report relays. 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: Pres. Medina Back After Meeting with Trump -------------------------------------------------------------- Dominican Today reports that President Danilo Medina arrived in the country on a flight from Miami, Florida, where he met with President Donald Trump along with four other leaders of the region. Upon his arrival, Medina said that the meeting was satisfactory because of the interest shown by President Trump in terms of trade for the region, mainly for the Dominican Republic, according to Dominican Today. He was pleased with the progress that the Dominican Republic has made in economic matters, the report notes. Regarding China, President Medina said that this issue was absent from the meeting, which was based on listening to the position of those countries on the situation in Venezuela, the report relays. The meeting, held behind closed doors, was attended by Medina, the presidents of Haiti, Jovenel Moise, and the Prime Ministers Hubert A. Minnis of the Bahamas, Andrew Holness of Jamaica, and Allen Michael Chastanet of Saint Lucia, the report says. Medina was received by the Minister of Defense and protocol staff of the National Palace, 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 L S A L V A D O R ===================== BANCO AGRICOLA: Fitch Affirms Long-Term IDR at 'B', Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed Banco Agricola, S.A.'s (Agricola) Long-Term Issuer Default Rating (IDR) at 'B'/Outlook Stable and its Viability Rating (VR) at 'b-'. Fitch Ratings also affirmed Agricola's Senior Trust Loan Participation Notes at 'B'/'RR4', and the national ratings in El Salvador of the bank and its local holding company Inversiones Financieras Banco Agricola (IFBA) at 'AAA(slv)'/Outlook Stable. KEY RATING DRIVERS IDRS, NATIONAL RATINGS AND SENIOR DEBT Agricola's IDRs, national and senior debt ratings reflect the potential support it would receive from its shareholder the Colombian bank Bancolombia S.A. (BBB/Stable). Fitch's assessment of Bancolombia's propensity to support Agricola mainly reflects that any required support would likely be manageable relative to the ability of the parent to provide it and that default by this subsidiary would constitute high reputational risk to its parent. El Salvador's country ceiling of 'B', which, according to Fitch's criteria, captures transfer and convertibility risks, constrains the bank's rating to a lower rating than would be possible based solely on Bancolombia's ability and propensity to provide support. Agricola's issuer and senior debt national ratings are at the highest point of the national ratings scale given the relative strength of the shareholder compared with other rated issuers in El Salvador. VR Agricola's VR is highly influenced by El Salvador's operating environment that, in addition to the country's GDP per capita and to the World Bank's Ease of Doing Business ranking, reflects the country's sovereign rating (B-/Stable), its still developing economic prospects and its evolving regulatory framework (compared with other countries). The operating environment poses limitations to banks' international ratings, especially for larger banks - as in Agricola`s case. Agricola's VR also reflects, with moderate importance, the bank's strong franchise in the local market and its solid financial profile. Agricola is the largest bank in El Salvador, with a market share close to 25.8% of total loans and total deposits, as of December 2018. The bank maintains sound and consistent profitability metrics, stable and controlled delinquency rates, stable deposit based funding, and adequate capital. Profitability is a credit strength. Operating profits to Risk Weighted Assets (RWA) have been consistently above 2.4% since 2015, underpinned by consistently low funding costs and controlled credit and operating costs. Agricola's ample franchise sustains a stable and granular deposit base that maintains its low funding cost and drives asset growth. As of December 2018, customer deposits accounted for 82% of total funding. Agricola's capital position is consistent with its rating level and the relatively high risk of the operating environment. As of December 2018, the bank's Fitch Core Capital to RWA metric decreased to 15.1%, pressured by higher asset growth and consistent dividend payments to its shareholder. Fitch forecasts that the bank's capital position is likely to stabilize at its current level and to maintain an adequate buffer above local regulatory requirements. As of December 2018, Agricola's regulatory capital position of 14.4% is above El Salvador's 12% minimum. Agricola's lending standards are consistent and perform well against the banking system and other similarly rated peers, as demonstrated by the performance of the loan book and investment portfolio. Delinquency levels remain consistently below 1.7%; although with a slightly increasing trend that, in Fitch's view, reflects the challenging economic conditions and moderate loan book concentration. Loan Loss Allowances cover 1.8x impaired loans and 3.1% total loans, well above the banking system average. SUPPORT RATING The bank's Support Rating reflects Fitch's opinion on Bancolombia's ability and propensity to support Agricola, should it be required. Agricola's support rating is also constrained by El Salvador's sovereign rating, as reflected in the country ceiling. As per Fitch's criteria, Agricola's IDR of 'B' maps to a support rating of '4'. AGRICOLA SENIOR TRUST LOAN PARTICIPATION NOTES The rating for Agricola Senior Trust's (AST) five-year U.S. dollar-denominated loan participation notes is aligned with the bank's IDR. The loan under the Senior Unsecured Loan Agreement ranks pari passu in right of payment to all of Agricola's existing and future senior indebtedness and is effectively subordinated to all of the bank's secured indebtedness with respect to the value of the assets securing such indebtedness and to all of the existing and future liabilities of its subsidiaries. INVERSIONES FINANCIERAS BANCO AGRICOLA IFBA's national ratings reflect its shareholder Bancolombia's ability and propensity to support it. The 'AAA(slv)' ratings show the relative strength of the shareholder, which is rated several notches above El Salvador's sovereign rating. RATING SENSITIVITIES IDRS Agricola's ratings remain sensitive to changes in El Salvador's sovereign and Country Ceiling ratings. Changes in the bank's IDR would mirror changes in El Salvador's country ceiling as it constrains Agricola's IDR. VR Agricola's VR is sensitive to changes in El Salvador's operating environment, including its sovereign rating. Downgrades in Agricola's VR could also come from a material deterioration in the bank's financial profile, although the latter is not Fitch's base case scenario. SUPPORT RATING Agricola's support rating is constrained but could be upgraded if El Salvador's sovereign and Country Ceiling rating are upgraded by more than one notch as this would reflect a reduction in the potential constraints on the bank's capacity to receive extraordinary support. A downgrade of the support rating is also possible should the sovereign rating and Country Ceiling be downgraded. AGRICOLA SENIOR TRUST LOAN PARTICIPATION NOTES The rating of the notes is aligned with the bank's long term IDR, hence would mirror any change in the bank's ratings. NATIONAL RATINGS The Rating Outlook is Stable as Fitch does not anticipate any changes to Agricola's and IFBA's national ratings. The ratings are at the highest point of the national rating scale and therefore have no upside potential. In turn, a rating downgrade is unlikely given the strength of the parent relative to other rated issuers in El Salvador. Fitch has affirmed the following ratings: Banco Agricola -- Long-term IDR at 'B'; Outlook Stable; -- Short-term IDR at 'B'; -- Viability Rating at 'b-'; -- Support Rating at '4'; -- National Long Term Rating at 'AAA(slv)'; Outlook Stable; -- National Short Term at 'F1+(slv)'; -- Senior Unsecured Debt at 'AAA(slv)'; -- Senior Secured Debt at 'AAA(slv)'. Agricola Senior Trust -- Loan participation notes at 'B'/'RR4'. Inversiones Financieras Banco Agricola S.A. -- National Long Term Rating at 'AAA(slv)'; Outlook Stable; -- National Short Term at 'F1+(slv'). BANCO DAVIVIENDA: Fitch Affirms 'B' Long-Term IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed Banco Davivienda Salvadoreno, S.A.'s (Davivienda Sal) Long-Term Issuer Default Rating (IDR) at 'B' and Short-Term IDR at 'B'. The Rating Outlook on the Long-Term IDR is Stable. At the same time, Fitch affirmed the bank's Viability Rating (VR) at 'b-', as well as the national rating of its holding Inversiones Financieras Davivienda, S.A. (IF Davivienda) at 'AAA(slv)'/Outlook Stable. KEY RATING DRIVERS IDRS, NATIONAL RATINGS AND SENIOR DEBT The IDRs, national ratings and senior debt of Davivienda Sal are based on the potential support from its parent Banco Davivienda, S.A. (Davivienda), if required. Davivienda is Colombia's third-largest bank with presence in Central America and Miami rated 'BBB'/Outlook Stable by Fitch. The IDRs are constrained by El Salvador's Country Ceiling of 'B', which, according to Fitch's criteria, captures transfer and convertibility risks. This caps the subsidiary's IDRs to a lower rating than would be possible based solely on Davivienda's ability and propensity to provide support; however, in Fitch's opinion, the owner's commitment to its subsidiary is sufficiently strong to allow Davivienda Sal is rated above the sovereign rating. Fitch also believes Davivienda's propensity to support the Salvadorian subsidiary reflects the huge reputational risk that the bank's default would constitute to its parent, which would damage its franchise. Also, any required help would be manageable relative to the owner's ability to provide it, due to Davivienda Sal represents close to 7.7% of total consolidated assets of Davivienda. Davivienda Sal's issuer and senior debt national ratings are at the highest point of the national rating scale given the relative strength of the shareholder in relation to other issuers rated in El Salvador. VR Davivienda Sal's VR is highly influenced by El Salvador's operating environment that, in addition to the country's GDP per capita and to the World Bank's Ease of Doing Business ranking, reflects the country`s sovereign rating (B-/Stable), its still developing economic prospects and its evolving regulatory framework (compared to other countries). The operating environment poses limitations to banks' international ratings, especially for larger banks - as in Davivienda Sal's case, which is the second largest bank in El Salvador with a market share of 14.8% by assets. Also, Davivienda Sal's VR reflects its company profile, reasonable risk appetite, good asset quality, modest profitability, appropriate capitalization and its stable funding. In Fitch's opinion, the asset quality is good; it showed a positive trend in the last years due to the decline in delinquency levels, which is stabilized in 2018, positioning the impaired loans to gross loans metric at 2.2% (2014: 2.7%), a percentage close to the industry average (1.9%). The impairment coverage was 103.0% in 2018. The agency expects these ratios remain at similar levels in 2019. The bank's profitability is modest and compares unfavorably with the system, although in 2018 it exhibited a slight improvement with an operating profit to risk weighted assets (RWA) ratio of 0.9%, compared with 0.7% observed in 2016 and 2017, while the system was 1.5%. Fitch expects the positive trend to continue in 2019 as a result of the different actions taken by the entity. The capital levels are appropriate but lower than the market. In 2018, the Fitch Core Capital to RWA metric was 14.0% (industry: 17.0%), although it presented a declining trend since averaging levels of 16.6%. The agency estimates that despite the bank maintaining its dividend pay-out ratio close to 50% of net income, the FCC indicator will remain above 12% for 2019. Fitch believes the bank's funding structure has shown stability supported by its well-recognized franchise in the country. Customer deposits are the main source of financing (71.5% over the last five years) and the institution complements it with debt issuances and loans from diverse institutions. In 2018, the loans to deposits ratio of 115.5%, was above of the local industry average of 101.9%. SUPPORT RATING According to Fitch's criteria, Davivienda Sal's IDR of 'B' maps to a Support Rating of '4'. The bank's Support Rating is based on Fitch's opinion of Davivienda's capacity and propensity to provide assistance to Davivienda Sal, if necessary. The institution's Support Rating is also constrained by El Salvador's sovereign rating, as reflected in the Country Ceiling. INVERSIONES FINANCIERAS DAVIVIENDA IF Davivienda, subsidiary of Davivienda, is a holding company whose exclusive purpose is the ownership of the subsidiaries of the Davivienda financial group in El Salvador. The consolidated financial profile of the conglomerate is a direct reflection of the financial performance of Davivienda Sal, which at year-end 2018 represented 98.5% and 93.3% of its assets and equity, respectively. The national rating of 'AAA(slv)' assigned to IF Davivienda reflects the ability and propensity of its shareholder Davivienda to support it. This rating exhibits the relative strength of its parent, which is rated seven notches above El Salvador's sovereign rating, compared with other rated issuers in the country. RATING SENSITIVITIES IDRs Davivienda Sal's ratings remain sensitive to a change in El Salvador's sovereign and Country Ceiling ratings. Changes in the bank's IDR would mirror variations in El Salvador Country Ceiling as it constrains Davivienda Sal's IDR. VR Davivienda Sal's VR is sensitive to changes in El Salvador's operating environment, including its sovereign rating. Downgrades in the bank's VR could also come from a material deterioration in its intrinsic financial profile, although this is not Fitch's base case scenario. SUPPORT RATING Davivienda Sal's support rating is constrained but could be upgraded if El Salvador's sovereign and Country Ceiling ratings are upgraded by more than one notch as this would reflect a reduction in the potential constraints on the bank's capacity to receive extraordinary support. A downgrade of the support rating is also possible should the sovereign rating and Country Ceiling be downgraded. NATIONAL RATINGS The Rating Outlook is Stable as Fitch does not anticipate any changes in Davivienda Sal's and IF Davivienda's national ratings. The ratings are at the highest level of the national rating scale and therefore have no upside potential. In turn, a rating downgrade is unlikely given the strength of the parent relative to other rated issuers in El Salvador. SENIOR DEBT The debt issuances' ratings are aligned with the bank's national ratings, so any change in the bank's ratings would be reflected in the issuances. Fitch has affirmed the following ratings: Banco Davivienda Salvadoreno -- Long-Term IDR at 'B'; Outlook Stable; -- Short-Term IDR at 'B'; -- Viability Rating at 'b-'; -- Support Rating at '4'; -- National Long-Term Rating at 'AAA(slv)'; Outlook Stable; -- National Short-Term Rating at 'F1+(slv)'; -- Senior Unsecured Long-Term debt at 'AAA(slv)'; -- Senior Secured Long-Term debt at 'AAA(slv'); -- Senior Unsecured Short-Term debt at 'F1+(slv)'; -- Senior Secured Short-Term debt at 'F1+(slv)'. Inversiones Financieras Davivienda -- National Long-Term Rating at 'AAA(slv)'; Outlook Stable; -- National Short-Term Rating at 'F1+(slv)'. ============= J A M A I C A ============= JAMAICA: Advancing Integrated Resource Plan ------------------------------------------- RJR News reports that Jamaica is advancing its Integrated Resource Plan (IRP). The IRP will establish the projected electricity demand over a 20-year period, determine the generation capacity and technologies to be used, and establish agreements on the transmission and distribution infrastructure, according to RJR News. This was disclosed by Energy Minister Fayval Williams, while addressing Mayberry Investments monthly Investor Forum, the report notes. 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. =========== M E X I C O =========== BANCO AHORRO: Moody's Gives B1 LT Deposit Rating, Outlook Stable ---------------------------------------------------------------- Moody's de Mexico has assigned a baseline credit assessment (BCA) and an adjusted BCA of b1 and long- and short-term global local and foreign currency deposit ratings of B1 and Not Prime to Banco Ahorro Famsa, S.A. (Banco Famsa). The rating agency has also assigned long- and short-term Mexican national scale deposit ratings of Baa3.mx and MX-3 to Banco Famsa. In addition, Moody's assigned long- and short-term counterparty risk assessments of Ba3(cr) and Not Prime(cr). The outlook on Banco Famsa's ratings is stable. The following ratings and assessments were assigned to Banco Ahorro Famsa, S.A. (820539657): Baseline credit assessment: b1 Adjusted baseline credit assessment: b1 Long-term global local currency deposit rating: B1, Stable Short-term global local currency deposit rating: Not Prime Long-term foreign currency deposit rating: B1, Stable Short-term foreign currency deposit rating: Not Prime Long-term Mexican National Scale deposit rating: Baa3.mx Short-term Mexican National Scale deposit rating: MX-3 Long-term counterparty risk assessment of Ba3(cr) Short-term counterparty risk assessment of Not Prime(cr) Outlook: Stable RATINGS RATIONALE Banco Famsa's B1 ratings reflect the inherently high asset risks stemming from its core consumer lending business, and the associated credit costs that result in volatile earnings. Banco Famsa's core capitalization is high, the result of a consistent policy of earnings retention and frequent capital injections by its shareholders Grupo Famsa, S.A.B. de C.V. The ratings also incorporate Banco Famsa's granular and stable deposit franchise, a credit strength. The bank's rating is nevertheless limited by its narrow business scope, centered around consumer lending, and high levels of related party loans relative to capital. In line with Banco Famsa's focus on riskier consumer financing, its nonperforming loan (NPL) ratio is high, at 11.4% in 2018, and consistently among the highest in the banking system. The pace of lending activity is primarily associated with Grupo Famsa's retail sales, but nonetheless, Banco Famsa's loan growth has been higher than the system's, with an expansion of about 20% in 2018 and similar levels expected for 2019. By way of comparison, overall loan growth in the system was 9.3% in 2018. However, Banco Famsa plans to expand its loan book into less risky asset classes over the next two years, including payroll linked loans and loans to small and medium size companies, which will have a positive effect on its asset quality because these loans tend to have lower non performing ratios. A successful shift of the loan mix towards less risky assets will benefit from lower credit costs and would be credit positive to asset quality and profitability. Banco Famsa's profitability, measured as net income relative to tangible banking assets, of 1.3% in 2018 is well below that of its closest peers in Mexico, owing to its much higher provisioning costs, which from time to time have accounted for high percentage of the bank's earnings. Nevertheless, Banco Famsa benefits from an efficient operation that supports its bottom line results, whereby operating costs represented around 40% of net revenues in 2018, a level that compares well to its peers. The bank's core earnings are mainly sourced from fees from credit card issuances, transactions, and collection rights, which comprise 82% of net revenues. Were credit costs to decline materially in light of the expected less risky loan book, profitability could improve to levels closer to that of its close peers in Mexico. Capitalization ratios will decline slightly given Banco Famsa's 2019-2021 strategic plan, which calls for loan growth to be financed with an issuance of subordinated debt. Banco Famsa has traditionally retained all its earnings and has consistently received capital injections from its shareholders in order to support its loan growth and maintain a regulatory total capital ratio of 12.5%. Moody's preferred measure of capitalization, its Tangible Common Equity (TCE) to Risk Weighted Assets (RWAs) ratio, deducts intangibles and risk weights the Mexican government securities at 20%. As a result, Moody's TCE/RWAs of Banco Famsa was 12.3% as of year-end 2018. In a scenario that incorporates the bank's future growth plans, its expected earnings retention and assumes less frequent capital injections, Moody's would expect Banco Famsa's capital to decline to a more moderate level, though still above 11% by 2021. A stable deposit franchise is the bank's relative strength. With no reliance on market funding, the bank's loan-to-deposit ratio is a low 75%. While a relevant 88% of Banco Famsa's deposits are sourced from individuals, these tend to be costlier time deposits, which represented 80% of deposits, as of year-end 2018. This strength helps offset Banco Famsa's very low level of liquid assets, at 4.5% of total banking assets, as of year-end 2018. The bank has a limited business scope and related party loans are high. Banco Famsa's core consumer financing business is dependent on the sales and performance of its affiliated retailer, as evidenced by the sizable portion of its loan book that stems from Group Famsa's customers. At the same time, the bank reports a considerable level of related-party lending, at 23% of the bank's TCE, as of year-end 2018. WHAT COULD CHANGE THE RATINGS -- UP/DOWN Upward pressure on Banco Famsa's ratings could derive from a moderate loan growth rate that could stabilize its asset quality and improve profitability, while capitalization remains robust. Conversely, the ratings could be negatively affected if continuing high loan growth translates into a sharp deterioration in asset quality and profitability that could hurt its capital. The principal methodology used in these ratings was Banks published in August 2018. ===================== P U E R T O R I C O ===================== PUERTO RICO: Court Ruling in Bankruptcy Fans Revenue Bond Fears --------------------------------------------------------------- Karen Pierog at Reuters reports that a decision by a U.S. Appeals Court in a lawsuit related to Puerto Rico's bankruptcy raises concerns over the payment of municipal bonds backed by specific revenues during future Chapter 9 cases, Fitch Ratings has said. The Boston-based First Circuit court determined that municipalities are not required to make payments on debt secured by special revenues while bankruptcy proceedings are ongoing, although municipalities can voluntarily opt to do so, according to Reuters. "The ruling, by stating such payments are optional, creates uncertainty about full and timely payment of special revenue obligations during bankruptcy of the related municipality," Fitch said, notes the report. The credit rating agency added that if the ruling stands, it could negatively affect ratings on certain bonds secured by utility, transportation and tax revenue, the report notes. The appeals court affirmed a ruling by U.S. District Court Judge Laura Taylor Swain, who is overseeing the island's bankruptcy, which was filed in 2017 in an effort to restructure about $120 billion of the U.S. commonwealth's debt and pension obligations, the report says. Swain had dismissed a lawsuit by insurance companies guaranteeing payments on defaulted Puerto Rico Highways and Transportation Authority bonds, the report relays. The bond insurers claimed that payments on the debt from pledged toll and other revenue should not be halted during the bankruptcy, the report notes. Assured Guaranty Corporation, one of the plaintiffs in the lawsuit, said it is assessing options, including an appeal to the U.S. Supreme Court, the report discloses. "We disagree with the court's ruling, which is at odds with prior court decisions and the legislative history relating to special revenue bonds and has potential negative implications for revenue bonds throughout the municipal bond market," Assured said in a statement obtained by the news agency. Chapter 9 municipal bankruptcy expert James Spiotto, managing director of Chapman Strategic Advisors, said the appeals court decision came as a surprise to the municipal bond market, which had assumed Swain's ruling would be reversed, the report notes. "This could have a very adverse effect on the use of special revenues all over," he added. Revenue bonds accounted for an average of 64 percent of annual issuance in the $3.8 trillion municipal market since 1990, according to Refinitiv data, the report relays. Not all revenue bonds qualify as being backed by special revenues under the bankruptcy code, which specifies special excise taxes or revenue derived from governmental projects or systems providing transportation, utilities or other services, the report says. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States that's facing a massive bond debt of $70 billion, a 68% debt-to-GDP ratio and negative economic growth in nine of the last 10 years. The Commonwealth of Puerto Rico has sought bankruptcy protection, aiming to restructure its massive $74 billion debt-load and $49 billion in pension obligations, the report discloses. The debt restructuring petition was filed by Puerto Rico's financial oversight board in U.S. District Court in Puerto Rico (Case No. 17-01578) on May 3, 2017, and was made under Title III of 2016's U.S. Congressional rescue law known as the Puerto Rico Oversight, Management, and Economic Stability Act ('PROMESA'). The Financial Oversight and Management Board later commenced Title III cases for the Puerto Rico Sales Tax Financing Corporation (COFINA) on May 5, 2017, and the Employees Retirement System (ERS) and the Puerto Rico Highways and Transportation Authority (HTA) on May 21, 2017. On July 2, 2017, a Title III case was commenced for the Puerto Rico Electric Power Authority ("PREPA"). U.S. Chief Justice John Roberts has appointed U.S. District Judge Laura Taylor Swain to oversee the Title III cases. The Honorable Judith Dein, a United States Magistrate Judge for the District of Massachusetts, has been designated to preside over matters that may be referred to her by Judge Swain, including discovery disputes, and management of other pretrial proceedings. Joint administration of the Title III cases, under Lead Case No. 17-3283, was granted on June 29, 2017. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets, as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at O'Neill & Borges are on-board as attorneys. McKinsey & Co. is the Board's strategic consultant, Ernst & Young is the Board's financial advisor, and Citigroup Global Markets Inc. is the Board's municipal investment banker. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains a case web site at https://cases.primeclerk.com/puertorico Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA, and PREPA. O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF), the agency responsible for negotiations with bondholders. The Oversight Board named Professor Nancy B. Rapoport as fee examiner and to chair a committee to review professionals' fees. Bondholders' Attorneys Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet, Rivera & Sifre, P.S.C. and serve as counsel to the Mutual Fund Group, comprised of mutual funds managed by Oppenheimer Funds, Inc., and the First Puerto Rico Family of Funds, which collectively hold over $4.4 billion of GO Bonds, COFINA Bonds, and other bonds issued by Puerto Rico and other instrumentalities. White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS Family of Funds and the Puerto Rico Family of Funds, which hold $613.3 million in COFINA bonds. Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam & Lausell are co-counsel to the ad hoc group of General Obligation Bondholders, comprised of Aurelius Capital Management, LP, Autonomy Capital (Jersey) LP, FCO Advisors LP, and Monarch Alternative Capital LP. Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are co-counsel to the ad hoc coalition of holders of senior bonds issued by COFINA, comprised of at least 30 institutional holders, including Canyon Capital Advisors LLC and Varde Investment Partners, L.P. Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson Kempner Capital Management LP, OZ Management, LP, and OZ Management II LP (the QTCB Noteholder Group). Committees The U.S. Trustee formed an official committee of retirees and an official committee of unsecured creditors of the Commonwealth. The Retiree Committee tapped Jenner & Block LLP and Bennazar, Garcia & Milian, C.S.P., as its attorneys. The Creditors Committee tapped Paul Hastings LLP and O'Neill & Gilmore LLC as counsel. PUERTO RICO: White House Backing Oversight Board ------------------------------------------------ Tim Ahmann at Reuters, citing The Wall Street Journal, reports that the White House is preparing to ask the U.S. Senate to confirm the current members of Puerto Rico's fiscal oversight board. In a move that would disappoint critics of the U.S. territory's financial supervisors, the Journal said, the Trump administration had begun the process of putting the board's seven voting members up for a Senate vote, according to Reuters. Puerto Rico is a self-governing commonwealth in association with the United States that's facing a massive bond debt of $70 billion, a 68% debt-to-GDP ratio and negative economic growth in nine of the last 10 years, the report recalls. The Commonwealth of Puerto Rico has sought bankruptcy protection, aiming to restructure its massive $74 billion debt-load and $49 billion in pension obligations. The debt restructuring petition was filed by Puerto Rico's financial oversight board in U.S. District Court in Puerto Rico (Case No. 17-01578) on May 3, 2017, and was made under Title III of 2016's U.S. Congressional rescue law known as the Puerto Rico Oversight, Management, and Economic Stability Act ('PROMESA'). The Financial Oversight and Management Board later commenced Title III cases for the Puerto Rico Sales Tax Financing Corporation (COFINA) on May 5, 2017, and the Employees Retirement System (ERS) and the Puerto Rico Highways and Transportation Authority (HTA) on May 21, 2017. On July 2, 2017, a Title III case was commenced for the Puerto Rico Electric Power Authority ("PREPA"). U.S. Chief Justice John Roberts has appointed U.S. District Judge Laura Taylor Swain to oversee the Title III cases. The Honorable Judith Dein, a United States Magistrate Judge for the District of Massachusetts, has been designated to preside over matters that may be referred to her by Judge Swain, including discovery disputes, and management of other pretrial proceedings. Joint administration of the Title III cases, under Lead Case No. 17-3283, was granted on June 29, 2017. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets, as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at O'Neill & Borges are on-board as attorneys. McKinsey & Co. is the Board's strategic consultant, Ernst & Young is the Board's financial advisor, and Citigroup Global Markets Inc. is the Board's municipal investment banker. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains a case web site at https://cases.primeclerk.com/puertorico Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA, and PREPA. O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF), the agency responsible for negotiations with bondholders. The Oversight Board named Professor Nancy B. Rapoport as fee examiner and to chair a committee to review professionals' fees. Bondholders' Attorneys Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet, Rivera & Sifre, P.S.C. and serve as counsel to the Mutual Fund Group, comprised of mutual funds managed by Oppenheimer Funds, Inc., and the First Puerto Rico Family of Funds, which collectively hold over $4.4 billion of GO Bonds, COFINA Bonds, and other bonds issued by Puerto Rico and other instrumentalities. White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS Family of Funds and the Puerto Rico Family of Funds, which hold $613.3 million in COFINA bonds. Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam & Lausell are co-counsel to the ad hoc group of General Obligation Bondholders, comprised of Aurelius Capital Management, LP, Autonomy Capital (Jersey) LP, FCO Advisors LP, and Monarch Alternative Capital LP. Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are co-counsel to the ad hoc coalition of holders of senior bonds issued by COFINA, comprised of at least 30 institutional holders, including Canyon Capital Advisors LLC and Varde Investment Partners, L.P. Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson Kempner Capital Management LP, OZ Management, LP, and OZ Management II LP (the QTCB Noteholder Group). Committees The U.S. Trustee formed an official committee of retirees and an official committee of unsecured creditors of the Commonwealth. The Retiree Committee tapped Jenner & Block LLP and Bennazar, Garcia & Milian, C.S.P., as its attorneys. The Creditors Committee tapped Paul Hastings LLP and O'Neill & Gilmore LLC as counsel. SKYTEC INC: Logistic Systems Object to Disclosure Statement ----------------------------------------------------------- Logistic Systems, Inc., filed an objection to the approval of the Disclosure Statement explaining Skytec, Inc.'s plan of reorganization complaining that the Debtor's future viability and its proposed Plan of Reorganization does not show how confirmation will be in the best interest of the creditors. Logistic Systems states, "The Debtor's ability to fund its future operations and obligations under the Plan is doubtful, and, therefore, the plan is not feasible. The plan improperly classifies and impairs claimants to obtain approval, clearly indicates that Debtor has not considered potential avoidance actions or other claims that it intends to release by the proposed plan and expects that its shareholders maintain their equity on the company without satisfying the absolute priority rule. For these reasons, the plan was filed in bad faith. Therefore, this Honorable Court should deny the confirmation of the Plan of Reorganization." The Debtor, in response, countered that there are no preferential transfers that Debtor could assert, no inclusion was warranted in the disclosure statement and/or the liquidation analysis. The Debtor points out that Logistics includes as an exhibit the pages of the monthly operating report for September 2018 wherein it alleges that a payment in the amount of $166,666 was made and not disclosed in the statement of financial affairs. Debtor further points out that in the very same page wherein the alleged payment is listed, a credit for the same amount is also listed. The Debtor also points out that Logistics submits a list of payments made to the Debtor's insiders, all of which were duly disclosed in the statement of financial affairs. The Debtor asserts that all of said payments are part of the insiders' compensation package as thoroughly discussed not only in the 341 Meeting of Creditors but also in the Rule 2004 Examination that was conducted by Logistics. The Debtor points out there is no evidence whatsoever that said payments were illegal and/or unwarranted. The Debtor clarifies that it had no nonresidential real estate leases to assume insofar as the only two leases of such nature are month to month leases as duly disclosed in the schedules and thoroughly discussed in the 341 Meeting of Creditors. According to the Debtor, regarding the details of the collateral held by Oriental Bank, the disclosure statement provided the correct description. The Debtor points out this is a fact well known by Logistics, who is the only entity objecting to the use of cash collateral. A full-text copy of Logistic Sysyem's Objection is available at http://tinyurl.com/yxhktwjsfrom PacerMonitor.com at no charge. Counsel for Creditor Logistic Systems, Inc.: Carlos A. Rodriguez-Vidal, Esq. Solymar Castillo-Morales, Esq. GOLDMAN ANTONETTI & CORDOVA, LLC Post Office Box 70364 San Juan, PR 00936-8364 Telephone No.: (787) 759-4117 Facsimile No.: (787) 767-9177 Email: crodriguez-vidal@gaclaw.com scastillo@gaclaw.com -- and -- Bryan T. Glover, Esq. FOSTER PEPPER PLLC 1111 Third Avenue, Suite 3000 Seattle, WA 98101 Telephone No.: (206) 447-4400 Facsimile No.: (206) 447-9700 Email: bryan.glover@foster.com About Skytec Inc. Skytec, Inc., is a privately-held company based in Puerto Rico that provides wireless telecommunication solutions. Skytec sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 18-05288) on Sept. 12, 2018. In the petition signed by Henry L. Barreda, president, the Debtor disclosed $2,119,734 in assets and $5,848,090 in liabilities. Judge Enrique S. Lamoutte Inclan presides over the case. The Debtor tapped Fuentes Law Offices, LLC as its legal counsel. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: PM Did Not Negotiate Gas Prices, Says Minister ----------------------------------------------------------------- Ria Taitt at Trinidad Express reports that communications Minister Stuart Young, said Prime Dr. Keith Rowley Young did not negotiate a "bad price" for natural gas supplied by multinational energy companies operating in Trinidad and Tobago's waters when he travelled to Houston in Texas in March 2017. Addressing the post-Cabinet news conference, Young sought to address claims made by certain persons about the Prime Minister's role in the negotiations in Houston in 2017, according to Trinidad Express. He said, contrary to statements being made by these people, "NGC and the technocrats were at all times part of these negotiations," Young said, the report notes. =========================== V I R G I N I S L A N D S =========================== LIMETREE BAY: S&P Affirms BB- Sr. Term Loan Rating, Outlook Neg. ---------------------------------------------------------------- On March 28, 2019, S&P Global Ratings affirmed its 'BB-' project finance rating on Limetree Bay Terminals LLC's senior secured term loan B. The '1' recovery rating is unchanged, indicating its expectation of very high (90-100%; rounded estimate: 95%) recovery in the event of default. Limetree Bay Terminals LLC is a 34 mmbbls crude oil and refined product storage facility located in St. Croix of the U.S. Virgin Islands. The asset is owned by a joint venture formed by an affiliate of Arclight Capital Partners, a private equity firm based in Boston, and Freepoint Commodities (collectively, the sponsor). The sponsor, through Limetree Bay Terminals LLC, purchased the mothballed asset in early 2016. Since then, the project gradually restarted a number of tanks and performed other upgrades as it acquired new tank lease contracts. S&P said, "The negative outlook reflects the possibility that we could lower the debt rating if Limetree Bay Terminals' cash flow generation does not improve by the end of the third quarter of 2019. "We could lower the rating if debt service coverage ratios declined to below 1.3x over the next 12 months, or if the project experienced delays in restarting additional tanks and completing other capital expenditure (capex) work that prevented it from bringing new contracts on lease. This could stem from an increased scope of work or adverse weather conditions in the Caribbean. We could also lower the rating if deleveraging did not occur in 2020, the project continued to rely on sponsor equity contributions for liquidity once all substantial capex work were complete, or it were unable to renew expiring contracts or re-contract at lower rates. "We could revise the outlook to stable if the project completed the substantial capex work on time and on budget, but the revision would also require improvements in cash flow generation. This could stem from a track record of renewing existing third-party contracts before expiring, increased ship visits, or the incremental revenue from providing lease services to the adjacent refinery. To maintain the current rating, we expect the project to maintain DSCRs at or above 1.5x on a sustained basis, including in the period after refinancing." =============== X X X X X X X X =============== [*] BOND PRICING: For the Week March 25 to March 29, 2019 --------------------------------------------------------- Issuer Name Cpn Price Maturity Country Curr ----------- --- ----- -------- ------- --- MIE Holdings Corp 7.5 56.2 4/25/2019 HK USD Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD China Huiyuan Juice Gr 6.5 46.6 8/16/2020 CN USD Yida China Holdings Lt 7.0 74.3 4/19/2020 CN USD Noble Holding Internat 5.3 60.5 3/15/2042 KY USD YPF SA 16.5 67.3 5/9/2022 AR ARS Noble Holding Internat 6.2 62.2 8/1/2040 KY USD Odebrecht Finance Ltd 7.0 17.0 4/21/2020 KY USD Banco Macro SA 17.5 65.2 5/8/2022 AR ARS KrisEnergy Ltd 4.0 40.4 6/9/2022 SG SGD Noble Holding Internat 6.1 62.0 3/1/2041 KY USD USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD Polarcus Ltd 5.6 71.8 7/1/2022 AE USD Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD MIE Holdings Corp 7.5 56.4 4/25/2019 HK USD Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD YPF SA 16.5 67.3 5/9/2022 AR ARS Provincia del Chubut A 4.5 2208 3/30/2021 AR USD Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD Enel Americas SA 5.8 32.7 6/15/2022 CL CLP Banco Macro SA 17.5 65.2 5/8/2022 AR ARS Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Province of Santa Fe 6.9 75.2 11/1/2027 AR USD Odebrecht Finance Ltd 7.0 16.5 4/21/2020 KY USD Province of Santa Fe 6.9 74.7 11/1/2027 AR USD Embotelladora Andina S 3.5 37.9 8/16/2020 CL CLP USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Empresa Provincial de 12.5 0.0 1/29/2020 AR USD Cia Energetica de Pern 6.2 1.1 1/15/2022 BR BRL Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY Plaza SA 3.5 38.3 8/15/2020 CL CLP Banco Security SA 3.0 5.6 7/1/2019 CL CLP Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD Corp Universidad de Co 5.9 64.2 11/10/2021 CL CLP City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD Fospar S/A 6.5 1.2 5/15/2026 BR BRL Empresa de Transporte 4.3 30.9 7/15/2020 CL CLP Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD SACI Falabella 2.3 50.6 7/15/2020 CL CLP Sylph Ltd 2.4 65.1 9/25/2036 KY USD Banco Security SA 3.0 27.4 6/1/2021 CL CLP Empresa Electrica de l 2.5 63.8 5/15/2021 CL CLP Sociedad Austral de El 3.0 17.0 9/20/2019 CL CLP Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP Esval SA 3.5 49.9 2/15/2026 CL CLP ********* 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 2019. 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 * * *