TCRLA_Public/190410.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, April 10, 2019, Vol. 20, No. 72



AES ARGENTINA: Fitch Affirms 'B' Long-Term IDRs, Outlook Negative
NEUQUEN: Fitch Affirms Ratings at 'B', Outlook Still Negative


AVIANCA BRASIL: Court Rules in Favor of Lessors
BRAZIL: Warns Venezuela of Guerrilla Warfare on Maduro Oust
COMPANHIA SIDERURGICA: Fitch Affirms B- IDRs, Off Watch Negative
CSN RESOURCES: Moody's Rates New $750MM Sr. Unsec. Notes 'B3'

FINANCIADORA DE ESTUDOS: Fitch Affirms BB- Rating, Outlook Stable
QUEIROZ GALVAO: Files for Bankruptcy For Two Hydroelectric Units

D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Agro Sector Not Given Importance, Rivero Says


BANCO AGROMERCANTIL: S&P Withdraws 'BB-/B' Issuer Credit Ratings


ELEMENTIA SAB: Fitch Puts BB+ IDR on Watch Neg. on Spin-Off Deal


AES PANAMA: S&P Affirms BB Issuer Credit rating, Outlook Negative

P U E R T O   R I C O

CHARLOTTE RUSSE: Selling Peek Brand IP & Related Assets for $425K
KONA GRILL: Delays Annual Report Due to CEO's Departure
SKYTEC INC: LogiSYS Seeks Ch. 11 Trustee Appointment

T R I N I D A D   A N D   T O B A G O

TRINIDAD & TOBAGO: WITCO Laments Decline in Consumer Confidence


SANCOR SEGUROS: Fitch Affirms B+ IFS Rating, Outlook Stable


VENEZUELA: Central Bank Sends Workers Home Amid Water Interruption

                           - - - - -


AES ARGENTINA: Fitch Affirms 'B' Long-Term IDRs, Outlook Negative
Fitch Ratings has affirmed AES Argentina Generacion S.A.'s (AAG)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
at 'B'. The Rating Outlook is Negative. Fitch has also affirmed AES
Argentina's 'B'/'RR4' ratings for the company's USD300 million
senior unsecured notes due 2024.

AAG's 'B' LT FC IDR is constrained by the Republic of Argentina's
country ceiling at 'B', which limits the foreign currency rating of
most Argentine corporates. Fitch's Country Ceilings are designed to
reflect the risks associated with sovereigns placing restrictions
upon private sector corporates, which may prevent them from
converting local currency to any foreign currency under a stress
scenario, and/or may not allow the transfer of foreign currency
abroad to service foreign currency debt obligations.

AAG's ratings reflect the Argentine electricity industry's
regulatory risk, which is improving but remains high. Fitch also
considers the company's counterparty risk with Compania
Administradora del Mercado Mayorista Electrico (CAMMESA) and other
market participants as the main off-takers, and its improving
metrics supported by relatively stable and predictable cash flow
generation. Finally, the ratings are constrained by the
macro-economic environment, including high inflation and steep
currency devaluation.

The Negative Outlook reflects sharply weaker economic activity and
uncertain prospects for multi-year fiscal consolidation and market
financing availability as IMF funds are used up, posing risks to
sovereign debt sustainability. Fitch assumes that in 2019 the
Argentine government will achieve the fiscal adjustment targeted in
the budget and that the recently renegotiated IMF program will help
it fully cover its financing needs but sees downside risks amid a
nascent economic recession and election cycle. After 2019,
prospects for further fiscal consolidation, economic recovery and
restoration of external market access are uncertain and are likely
to be sensitive to the election outcome.

The 'B'/'RR4' ratings on the USD300 million senior unsecured notes
due 2024 is based on AAG's equal FC and LC IDRs. Fitch's
"Country-Specific Treatment of Recovery Ratings" criteria no longer
allows for a rating uplift for these obligations. AAG is capped at
an average Recovery Rating of 'RR4' since Argentina, per the
aforementioned criteria, is categorized within Group D with a soft
cap of 'RR4'. This assumes a recovery in the range of 31% to 50%,
although a bespoke recovery analysis for each of these companies
yields a higher than 70% recovery given a default.

Absent the constraint of Argentina's country ceiling for AAG's
ratings, Fitch estimates the company's stand-alone credit profile
is in line with the 'BB' rating category due to strong credits
metrics, solid capital structure, adequate liquidity and a
well-diversified asset portfolio both geographically and


Strong Competitive Position: AAG owns a portfolio of diversified
generation assets in terms of operational technologies and
geographical presence, which lowers business risk. The company has
a portfolio mix of 44% hydro and 56% thermal. This combines with a
large generation capacity of close to 2.76 gigawatts and an 8% of
installed capacity in Argentina and 6.8% of gross generation in the
SADI. In addition, the company is undergoing an expansion phase of
renewable project totalling 180MW of installed capacity under the
Renovar program, which is expected to be completed by the end of
first quarter 2020. Fitch views AAG as a competitive participant in
the Argentine market.

Heightened Counterparty Exposure: AAG, like all generation
companies in Argentina, depends on payments from CAMMESA, which
acts as an agent on behalf of an association representing agents of
electricity generators, transmission, distribution and large
consumers or the wholesale market participants (Mercado Mayorista
Electrico or MEM). Although over the past 18 months CAMMESA's
payment track record has been consistent and on time, historically,
payments have been volatile given that the agency depends partially
on the Argentine government for funds to make payments. The notable
exception was a four-week delay in September 2018 in the FX portion
of CAMMESA's payment to AES Argentina due to Argentina's currency
crisis. On the supply side, fuels continue to be provided by
CAMMESA, with the exception of coal, which is procured by AAG for
its San Nicolas unit.

Uncertain Regulatory Environment: Fitch believes Argentina's
current economic and political environment increases the
uncertainty that Mr. Macri's administration will be able to
effectively implement the required electricity regulatory tariffs
adjustments in order for the system to be self-sustainable. The
companies operate in a highly strategic sector where the government
both has a role as the price/tariff regulator and also controls
subsidies for industry players. Electricity prices continue to
remain sub-optimal compared with other countries in the region, and
there is further uncertainty due to Argentina's current
macroeconomic challenges. Fitch assumes the Macri administration
continues to be committed to and prioritizes developing a long-term
sustainable regulatory environment that is moving toward a more
unregulated market and deficit reduction.

Strong Credit Metrics: As of December 2018, the company's financial
metrics were strong, with low leverage and strong interest
coverage. AAG's total debt to EBITDA reached 2.5x, including debt
with CAMMESA, while EBITDA/interest expense was 5.2x. Debt with
CAMMESA is mostly related to loans provided by the government
agency for maintenance and/or improvements of generation assets.
Fitch anticipates a peak of 3.3x in gross leverage during 2019,
explained by the incremental debt to complete the renewable
projects. Going forward, Fitch estimates gross leverage below 2.5x.

AAG also has a strong capital structure with its first debt
maturity scheduled in 2024 and manageable interest expense. The
company's ratings also reflect receivables from its FONINVEMEM
investments of approximately USD72 million during 2019. From 2020
onwards, FONINVEMEM investments will be approximately USD60 million
annually as AAG's approximately 10% equity stake in both units at
Belgrano and San Martin are completed. Unlike CAMMESA, repayments
of FONINVEMEM obligations have been made according to schedule.

Structurally Negative FCF through Investment Cycle: Fitch
anticipates a negative FCF for AAG during 2019 as the company
carries the construction of 1800MW of install capacity awarded
under Renovar Program. Going forward, Fitch estimates modest capex
plans mostly concentrated on maintenance for current generation
assets. Absent any additional projects increasing capex,
extraordinary acquisitions or dividends exceeding the established
pay-out ratio, Fitch estimates the company's FCF neutral to
positive during 2020-2022, once the renewable expansion is


AAG's FC rating is constrained by the country ceiling of Argentina,
which is similar to its peers: Pampa Energia (B/Negative), Genneia
(B/Negative) and Capex (B/Negative). AAG's gross leverage as of
December 2018 reached 2.5x compared to Pampa Energia at 2.2x,
Genneia at 5.2x, and Capex at 2.8x. Fitch estimates that AAG's
projected gross leverage is in the range of 2.5x - 2.7x, slightly
below its Argentine peers median of 3.0x. Similarly to all its
peers in the electric sector, AAG's working capital is vulnerable
to delays in payments from CAMMESA.

In terms of business profile compared with peers, AAG is
concentrated only in the electricity generation sector, presenting
a balanced portfolio between thermal and hydro assets. Pampa
presents a more diversified business profile as a leading company
in electricity generation, distribution, transmission, gas
production and transportation. While Capex has an advantageous
vertical integration in the thermoelectric generation with the
flexibility of having its own natural gas reserves to supply its
plants. Genneia is considered a relatively small player in the
local power generation industry (2% of the system's installed
capacity); the company is the leading wind power generation
provider in the country, with an aggressive expansion plan in
renewables, exposing the company to greater execution risk.

MSU Energy (B-/Stable) and Albanesi (B-/Rating Watch Negative) are
also concentrated in the thermoelectric generation sector; both are
rated one notch below AAG. MSU Energy's ratings reflect a high
amount of leverage combined with inherent execution risk in
completing its 300 MW combined cycle expansion, while Albanesi's
Negative Watch reflects the continued uncertainty to refinance
short-term maturities and raise capital to fund its 275MW combined
cycle expansion projects. In addition, both companies present a
reputation risk associated to shareholders, as part of the
involvement in the federal graft investigation.


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

  -- Increase Installed capacity of 180MW under Renovar during
2020, reaching 2,940MW through 2022;

  -- USD Revenues under Energia Base new scheme;

  -- Gross Generation of approximately 8,700GWh during 2019,
increasing to 9,400GWh as Renovar projects come online during

  -- Maximum dividend pay-out to guarantee minimum cash balance of
USD15 to USD20 million per year, with a higher cash balance
maintained over the next few years reserved for strategic

  -- USD99 million incremental debt to finance the construction of
180MW under Renovar Program;

  -- Maintenance capex of USD14 million during 2019, averaging
USD22 million annually during 2020-2022;

  -- USD denominated flows related to FONINVEMEM of approximately
USD 64 million per year, mainly associated to Guillermo Brown, and
USD12 million per year related to Belgrano and San Martin.
FONINVEMEM receivables are USD64 million, USD60 million and USD57
million during 2020, 2021 and 2022, respectively, all related to
Guillermo Brown.

Key Recovery Rating (RR) Assumptions:

  -- Going Concern approach uses a 4.0x EBITDA multiple, reflecting
Fitch's estimate valuation for companies reorganizations in the
utilities sector. The waterfall results in a 50% recovery
corresponding to an 'RR4' for the senior unsecured notes (USD300


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

  -- An upgrade to the ratings of Argentina could result in a
positive rating action.

  -- Given the issuer's high dependence on the subsidies from
CAMMESA, any further regulatory developments leading to a more
independent market less reliant on support from the Argentine
government could positively impact the company's collections/cash

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

  -- A significant deterioration of credit metrics and/or
significant payment delays from CAMMESA;

  -- A reversal of government policies that result in a significant
increase in subsidies coupled with a delay in payments for
electricity sales;

  -- A downgrade of Argentina's ratings would result in a downgrade
of the issuer's ratings, given that the ratings are constrained by
the sovereign's credit quality;

  -- A significant deterioration of credit metrics measured as
total debt/EBITDA consistently above 4.5x or more.


Comfortable Liquidity: As of December 2018, AAG reported available
cash of USD171 million covering approximately five years of
interest expense, assuming no additional debt is raised. AAG has a
strong capital structure with its first debt maturity scheduled in
2024, and the company does not face any significant financing needs
over the foreseeable future. Fitch expects the company will
maintain this strong cash position, as it looks to pursue
opportunities in the Argentina, with a focus on renewable


Fitch has affirmed the following ratings:

AES Argentina Generacion S.A.
  -- Foreign Currency Long-Term IDR at 'B'; Outlook Negative;

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

  -- Long-term senior unsecured notes due 2024 at 'B'/'RR4'.

NEUQUEN: Fitch Affirms Ratings at 'B', Outlook Still Negative
Fitch Ratings has affirmed the Province of Neuquen's (PN) ratings
at 'B'. The Rating Outlook remains Negative due to Argentina's
'B'/Negative sovereign rating.


The affirmation of Neuquen's ratings considers the province's
economic weight in the national hydrocarbon sector, high fiscal
autonomy, and moderate leverage. The rating's main limitations are
its weak and volatile operating margins, which post weak debt
sustainability metrics, economic concentration and high
infrastructure needs in a context of scarce capital sources and
market vulnerability.

Institutional Framework: Weak, Stable

Fitch considers Argentina's institutional framework weak given the
country's complex and imbalanced fiscal regime with no equalization
funding. Recent agreements between the nation and provinces tracked
fiscal improvements for most Argentine subnational entities. Fitch
believes the sustainability of fiscal improvements will depend on
economic activity accompanying the process of fiscal convergence.
Considering the Fiscal Pact's principles, Neuquen's ability to
sustain its positive fiscal performance observed with 2018
provisory data will depend on economic variables and hydrocarbon
sector performance.

Economy: Weak, Stable

Fitch views the economy as weak for all Argentine subnationals
compared to international peers, because they operate in a
macroeconomic context of volatility, high inflation and currency
depreciation, structural characteristics of Argentina's weak

Neuquen is located in the southwestern region of Argentina at the
northern end of the region known as the 'Patagonia' and borders
western Chile. The province's economy is highly concentrated in the
hydrocarbon sector, contributing to around 23% of national oil
production (second after Chubut, 'B'/Negative, with 31%) and 52% of
national gas production in 2018. In the same year, national gas
production rose by around 5% and for the first time in more than a
decade, and oil production increased by an estimated 1.6%.

The positive cyclicality of hydrocarbons during 2018 translated
into a 121.2% nominal increase in hydrocarbon royalties and 80% in
'Ingresos Brutos' ("turnover" tax, the main provincial local tax),
which is also tightly linked to the local economy. Although the
Fiscal Pact sets a gradual decrease for all provinces on the
maximum rates imposed for this tax, hydrocarbon activities are
exempt of the limits imposed in the stipulated timetable. Both of
these revenue sources comprised around 57% of Neuquen's operating
revenues in 2018. In addition, hydrocarbon royalties are linked to
the USD, which in a context of significant currency depreciation
influenced the high increase relative to previous years.

Fiscal Performance: Weak, Stable

During 2018, hydrocarbon performance tracked Neuquen's positive
fiscal performance, which according to provisory information
resulted in an operating margin of 13.64% up from an average of
1.5% during 2014-2017, and considering negative margins in 2015 and
2017. Albeit adequate fiscal autonomy, the entity's volatile fiscal
performance is a weakness considered in the ratings. For 2019,
Fitch estimates that the province's margins could be similar to
2018, and around 14%, considering a 1.8% increase in oil production
and a 3.2% increase in gas production and close to inflation
expenditure re-composition. However, the country's economic
vulnerability could also pose risks to the hydrocarbon sector and
its policies.

Debt, Liabilities, and Liquidity: Weak, Stable

In 2018 according to preliminary data debt totalled ARS47.7
billion. During the year, the percentage of direct debt in foreign
currency rose to 82.4% from 64.4% in 2017 because of currency
depreciation during the year. However, compared to other provinces,
debt currency exposure is partially mitigated by the entity's
revenues derived from hydrocarbon royalties, which are linked to
the USD.

Debt sustainability remained weak in 2018 the entity's operating
balance was equivalent to 0.82x debt servicing, and was negative in
some years of the period of analysis 2014-2017, due to weak margins
in those years. However, leverage remained moderate at debt
representing 62.14% of current revenues. Fitch estimates that if
Neuquen's performance continues to be positive the operating
margin/ debt servicing sustainability metric could be closer or
slightly above 1x in the coming years.

Regarding pensions, Neuquen is one of the provinces that did not
transfer its social security scheme to the nation. However due to
administrative measures regarding contributions and some national
funding the weight of pension funding is low and has decreased,
having a lower burden relative to other provinces.

Fitch monitors the financial performance of PN's main
unconsolidated public companies, which are Banco Provincia del
Neuquen S.A. (BPN) and Gas y Petroleo del Neuquen (GPN). To date,
BPN and GPN do not pose contingent risks for the province's
finances. In general, the province has no indirect or guaranteed

Management and Administration: Neutral, Stable

Fitch evaluates this attribute as 'Neutral'. Neuquen's policies
have consistently focused on encouraging local economic development
and improving debt terms and conditions. PN has also successfully
adhered to the Federal Fiscal Responsibility Law and to the Fiscal
Consensus. During March 10, 2019, the local governor was re-elected
for another four-year term. Thus, Fitch expects policy continuity,
which could influence a more sustained fiscal performance towards
the coming years, and will monitor expenditure policies.


A downgrade of Argentina's sovereign rating would impact Neuquen's
ratings, as per Fitch's criteria, which states that no subnational
in Argentina can be rated above the sovereign. However,
stabilization on the sovereign rating could also stabilize the
ratings if Neuquen sustains a balanced fiscal performance that
results in adequate debt sustainability metrics.

Fitch has affirmed the following ratings:

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

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

  -- TICADE Series I, senior secured bond for USD348.69 million
     8.625% due May 12, 2028, at 'B';

  -- TIDENEU, senior unsecured bond for USD366 million 7.5%
     due April 27, 2025, at 'B.


AVIANCA BRASIL: Court Rules in Favor of Lessors
Marcelo Rochabrun at Reuters reports that a Brazilian appeals court
ruled in favor of several Avianca Brasil lessors, granting them the
right to repossess over 15 planes, legal records show, amid a
renewed push to retrieve the Airbus jets from the struggling

Avianca Brasil filed for bankruptcy in December after falling
behind on airplane lease payments and has managed to hold on to
most of its planes amid a dizzying number of court cases, according
to Reuters.

But while Brazilian judges had previously blocked repossession
efforts pending a creditors meeting on the fate of Avianca Brasil's
debts, that hurdle has now been cleared, the report says.

Avianca Brasil's creditors met and approved a series of auctions to
sell the carrier's airport slots.

The airline declined to comment.

The carrier had previously announced that it would progressively
reduce the number of destinations it serves throughout April, the
report relays.

The lessors involved include Aircastle and Aviation Capital Group,
which had leased Avianca Brasil a combined 18 planes, as of early
this year, the report notes.

The legal decisions were unanimous and issued orally by a panel of
three appeal court judges, the report relays.  They were confirmed
by two sources with knowledge of the information, the report adds.

              About Avianca Brasil

Avianca Brazil, officially Oceanair Linhas Aereas S/A, is a
Brazilian airline based in Sao Paulo, Brazil. It operates passenger
services from more than 20 destinations.  It is hailed as the
fourth largest airline in Brazil.  Synergy Group is the parent
company of Avianca Brazil.

On December 10, 2018, Avianca Brazil filed for bankruptcy when
three lessors took a move to gain possession of 30% of the
airline's 50 all-Airbus fleet.  The airline further blamed high
fuel prices and a strong dollar for its troubles.  The airline
noted at that time that flights won't be affected.

BRAZIL: Warns Venezuela of Guerrilla Warfare on Maduro Oust
Clive Hammond at reports that Brazil President Jair
Bolsonaro issued a stark warning after claiming he was working with
his counterparts in the U.S. to sow dissent within the Venezuelan

Venezuela is in turmoil after months of rowing between Maduro and
opposition leader Juan Guaido, relays.  Mr. Guaido is
seen by most in the world as the country's actual leader, with many
alleging Maduro gained his presidency by fraudulent methods, the
report notes. Mr. Guaido, the head of the National Assembly party,
is now recognised by more than 450 nations as the country's
legitimate leader, the report adds.

During an interview with Jovem Pan radio, Mr. Bolsonaro said if
there was a military invasion in Venezuela, he would ask Brazil's
National Defence Council and Congress what action would need to be
taken, the report relays.

"We cannot allow Venezuela to become a new Cuba or North Korea,"
the report quoted Mr. Bolsonaro as saying.

Maduro is getting backing from its international allies Russia and
China, states. However, Venezuelans are critical of
the Maduro administration amidst ongoing blackouts and food
shortages, the report cites.

COMPANHIA SIDERURGICA: Fitch Affirms B- IDRs, Off Watch Negative
Fitch Ratings has affirmed Companhia Siderurgica Nacional's (CSN)
existing ratings, including the Long-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) at 'B-'. The ratings have
been removed from Rating Watch Negative (RWN) and assigned a Stable
Outlook. In addition, Fitch has assigned a 'B-'/'RR4(EXP)' rating
to the proposed benchmark-sized senior unsecured notes to be issued
by CSN Resources S.A.. The notes are unconditionally and
irrevocably guaranteed by CSN. They will rank pari passu with CSN's
existing unsecured debt. Net proceeds will be used to complete a
tender offer for all of the company's remaining notes due September
2019 and a portion of its 2020 notes.

CSN's Stable Outlook reflects the reduction in its short-term
refinancing risks coupled with sufficient liquidity to meet its
obligations over the near term following the receipt of cash from
its USD500 million iron ore prepayment agreement with Glencore. The
expected successful benchmark sized issuance will also refinance
debt into the longer term, reducing more immediate liquidity
concerns. Further factored into the Stable Outlook are the
favourable iron ore industry fundamentals following supply
disruptions from the world's largest seaborne iron ore producer,
Vale S.A. (BBB-/RWN), after its tailings dam disaster in January
2019. Sustained higher iron ore prices of above USD70 per metric
ton over the next 12-18 months will provide CSN an unexpected cash
flow windfall to improve credit metrics. CSN is also expected to
benefit from the continued improving domestic steel industry in
Brazil following the company's announced 25% price increase for
auto manufacturers and price increases for other customers, coupled
with demand growth in the single high digits for 2019. These
operational tailwinds, combined with the reduction of its
short-term refinancing risks and assuaged liquidity pressures,
provide CSN with additional headroom in order to reduce its heavy
debt burden.

CSN's 'B-' rating continues to reflect the company's dire need to
sell additional assets and divert operating cash flow generation to
gross debt reduction in order to improve the sustainability of its
capital structure through future commodity cycles. CSN has been
proactive in refinancing a significant portion of its debts in
order to better manage its maturity ladder and maintain sufficient
liquidity. The company delivered on the sale of Companhia
Siderurgica Nacional, LLC (LLC), for USD400 million during May 2018
and the Glencore prepayment agreement for the delivery of 20
million metric tons of iron ore over the next five years in order
to bring forward future sales. The company's leverage profile
remains vulnerable to a decline in iron ore prices as the industry
outlook remains challenging over the long term, coupled with
increased capital expenditure outflows, and future dividends to
fund obligations at the shareholder level.


Relief from Short-Term Refinancing Risks: CSN's reduction in
short-term refinancing risk through its upcoming benchmark bond
issuance coupled with its USD500 million prepayment agreements
provide the company with an improved amortization schedule and
reduces the risks on its tight liquidity position. CSN's improving
financial flexibility is a key factor in the removal of its RWN.
Liquidity is projected to benefit from higher iron ore prices and
improving domestic steel fundamentals.

Leverage to Decline: Fitch's base case assumption indicates 2019's
net leverage to fall below 5.0x in 2019 with a mid-cycle price
assumption of USD75 per ton. This excludes any further asset sales
which would further deleverage the business. Sustained iron ore
prices over the next 12-18 months will allow for continued
improvement in the company's credit metrics. Should CSN execute on
its potential iron ore streaming transaction and sale of its German
steel asset, net leverage would decline to below 4.0x, based on
Fitch's assumptions and could lead to a upgrade of the rating
should these funds be used for gross debt reduction. The company's
capital structure remains unsustainable in Fitch's view, and gross
debt reduction is paramount to repairing its balance sheet.

Improvement in Sector Fundamentals: Higher global iron ore and
steel prices correspond with an upward trend in domestic steel
prices, and a solid recovery in volumes has benefited CSN's
operating cash flow generation. Fitch projects that CSN's local
steel sales volumes will increase by 9% in 2019, after growing 17%
in 2018, mostly reflecting the strong rebound in automobile
production in Brazil. CSN's margins are also expected to benefit
from continued sales of higher valued added steel products. Local
steel producers have been able to apply several price increases
since the mid-2016 due to strong international prices. Fitch
expects price increases of approximately 6%-8% during 2019,
excluding a 25% increase to automakers. Risks to higher domestic
steel prices are an appreciation in the BRL and an adverse change
to steel import tariffs in Brazil, which currently are around 12%.

Cash Flow Generation Recovery: CSN's sustained cash flow generation
recovery relies on increasing steel sales, the ability to continue
passing along price increases in the domestic steel segment,
manageable coal costs, and sustained iron ore prices above USD60
per metric ton. CSN's cash flow generation has also benefited from
its investments in its iron ore division, which has allowed the
company to receive a $3 per metric ton premium for quality since
the second half of 2018 with further investments expected to
develop a higher proportion of premium ore products. Fitch's base
case scenario projects CSN's EBITDA at approximately BRL5.5
billion, considering Fitch's iron ore price deck of USD75 per
metric ton for 2019 and EBITDA of BRL6.3 billion considering iron
ore price of USD70 per metric ton for 2020, and factors in
continued mid/high-single-digit growth in steel volumes. This
compares to Fitch adjusted EBITDA of BRL4.3 billion for 2018.

Capital Allocation to Drive FCF Trend: Fitch expects FCF to revert
to negative in 2019, driven by the resumption of dividends of
around BRL900 million and higher business cash outflows under
improved market conditions. Absent Fitch's dividend assumptions and
considering capex of BRL1.5 billion, FCF would remain positive in
2019. Furthermore working capital requirements will return, as
inventories are already at low levels, and accounts receivable are
pressured in order to support continued sales expansion.

Corporate Governance and Event Risks: CSN's delay in releasing
audited financial statements during 2017, shareholder disputes and
no clear strategy for the Transnordestina asset reflect weak
corporate governance practices compared to other issuers in Fitch's
corporate rated universe in Brazil. The probability of event risks
for CSN is above average. While CSN's mining production has not
been directly impacted by Vale's dam breach on Jan. 25, 2019, the
mining industry in Brazil remains under intense scrutiny with
uncertain and elevated political and regulatory risks. The
company's sole operating tailings dam is of the downstream
construction method, the company has all of its licenses in place,
is moving toward 100% dry stacking by end of 2019 (currently around
60% of production dry stacking), and is in the process of already
decommissioning its upstream inactive dams. Leverage, which is also
believed to be high at the shareholder's level, is also a concern.

Good Business Position: CSN's business position as an integrated
steelmaker remains solid, underpinned by captive access to raw
materials (iron ore/energy), high value-added portfolio of products
and an important share in the flat steel industry in Brazil. The
company has a diversified portfolio of assets with operations in
the mining, steel, energy, cement and interests in railways and
ports operations. The company has a poor cost competitive position
in its iron ore segment, operating toward the high end of the iron
ore cost curve as per CRU's busines. Given its integrated steel
operations, CSN has a better position in the global HRC curve (1st


CSN's 'B-'/Outlook Stable rating reflect its highly leveraged
capital structure and need to divert growing cash flow generation
and/or continue asset sales in order to reduce its high debt
burden. CSN's more integrated business profile and diversified
portfolio of assets compares well with Usinas Siderurgicas de Minas
Gerais S.A.'s (Usiminas; B+/Positive). Both issuers are highly
exposed to the local steel industry in Brazil. CSN and Usiminas
show much weaker business position compared to the other Brazilian
steel producer Gerdau S.A (Gerdau; BBB-/Stable), that has a
diversified footprint of operations with important operating cash
flow generated from its assets abroad, mainly in U.S., and flexible
business model (mini-mills) that allow it to better withstand
economic and commodities cycles.

From a financial risk perspective, Usiminas and CSN are far weaker
than Gerdau, which has been able to maintain positive FCF
generation, strong liquidity and no refinancing risks over the last
few years. CSN faces elevated refinancing risks in the short to
medium term while it has the challenge to effectively rebalance its
capital structure trough ongoing asset sales. In contrast, after
concluding its debt restructuring, Usiminas has a more manageable
debt schedule amortization and balanced capital structure.

CSN's 1st quartile position on the hot rolled coil steel cost curve
compares similarly to global peers such as PAO Severstal
(BBB-/Stable) and U.S. Steel Corp. (BB-/Positive), as the company
benefits from its vertical integration and as well as the weak BRL.
CSN and Severstal both benefit from a significant share of high
value-added products which make up their sales. CSN exhibits much
weaker credit metrics when compared to Severstal (net debt/EBITDA
less than 1.0x) and U.S. Steel Corp. (net debt/EBITDA less than
2.0x), and its significant refinancing risks reflect the
differential between its rating and its global peers.


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

  -- 9% increase in domestic steel volumes sold during 2019;

  -- Total steel sales around 5.2 million tons in 2019;

  -- Iron ore volumes of 30 million metric tons in 2019;

  -- Average iron ore price of USD75 per metric ton during 2019
     and USD70 per metric ton in 2019, following Fitch's mid-price


  -- Repayment of September 2019 cross-border notes with cash and
     refinancing of 2020 cross-border notes by end of 2Q19;

  -- Dividends of BRL900 million to be distributed over 2019.


The recovery analysis assumes that CSN would be considered a going
concern in bankruptcy and that the company would be reorganised
rather than liquidated. Fitch has assumed a 10% administrative

Going-Concern Approach: CSN's going-concern EBITDA is based on 2015
EBITDA. The going-concern EBITDA estimate reflects Fitch's view of
a sustainable, post-reorganisation EBITDA level upon which Fitch's
bases the valuation of the company.

The going-concern EBITDA is based on 2015 EBITDA that reflects a
scenario of intense volatilities in the steel industry, in terms of
volume and prices, and on the iron price fundamentals. The
EV/EBITDA multiple applied is 5.5x, reflecting CSN's strong market
share in the flat steel market and it also reflects a midcycle

Fitch applies a waterfall analysis to the post-default enterprise
value (EV) based on the relative claims of the debt in the capital
structure. Its debt waterfall assumptions take into account debt at
Dec. 31, 2018. The waterfall results in a 42%/'RR4' Recovery Rating
for senior unsecured debt. Therefore, the senior unsecured notes
due 2019, 2020 and perpetual are 'B'/'RR4'. Recovery Ratings in
Brazil are subject to the country soft cap of 'RR4'.


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

  -- Continued improvement in domestic steel environment coupled
     with sustained iron ore prices, allowing the company to
     reduce its gross debt quantum;

  -- Delivery of additional asset sales in order to support gross
     debt reduction coupled with maintenance of adequate liquidity


  -- Sustained adjusted net debt/EBITDA ratio below 5.0x.

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

  -- Unsuccessful issuance of the benchmark bond that elevates
     CSN's refinancing risk to the immediate term will result in a

     downgrade of the company's ratings;

  -- Inability or unwillingness to reduce gross debt levels with
     cash proceeds from additional asset sales and/or cash
     generation from operations in order to improve capital

  -- Adverse regulatory changes in Brazil's mining industry
     leading to reduce output and/or materially higher production
     costs at its Casa de Pedra mine;

  -- Reversion of adjusted net debt/EBITDA ratio to above 6.0x;

  -- Sustained liquidity pressures driven by persistent negative
     FCF generation.


CSN reported BRL3.1 billion of cash and marketable securities as of
Dec. 31, 2018, a very tight position compared to its short-term
debt of BRL5.7 billion and total debt of BRL28.8 billion, per
Fitch's calculation. Inclusive of the cash received from the iron
ore payment agreement with Glencore on March 29, 2019, liquidity
was BRL5.0 billion.

Following the issuance of its benchmark sized bond and refinancing
its 2019 and 2020 notes, CSN's maturity ladder extension will
provide the company with additional cushion to maintain liquidity
and service its obligations. CSN's debt primarily consists of
prepayment export financings (19%), local bank loans (31%), senior
notes (23%) and perpetual bonds (13%). The leverage at the
shareholder level, which is believed to be high, is a concern for


Fitch has affirmed and removed the following ratings from Rating
Watch Negative:

  -- CSN Long-Term Foreign and Local Currency Issuer Default
     Ratings (IDRs) at 'B-';

  -- CSN National Long-Term rating at 'BB-(bra)';

  -- CSN Islands XI Corp. senior unsecured long-term rating
     guaranteed by CSN at 'B-'/'RR4';

  -- CSN Islands XII Corp. senior unsecured Long-Term rating
     guaranteed by CSN at 'B-'/'RR4'.

The Rating Outlook is Stable.

Fitch has assigned the following rating:

CSN Resources S.A.

  -- Senior unsecured USD note long-term rating guaranteed by CSN

S&P Global Ratings related that Brazil-based integrated steel
producer Companhia Siderurgica Nacional (CSN) has announced the
issuance of $750 million in notes to tender the outstanding amounts
of its 2019 and 2020 bonds. If the company is successful in placing
the notes and use the proceeds to pay down debt due 2019 and 2020,
liquidity pressures will diminish sharply, S&P noted.

On April 5, 2019, S&P Global ratings placed its ratings on
Brazil-based integrated steel producer Companhia Siderurgica
Nacional (CSN) on CreditWatch with positive implications, including
its 'CCC+' global scale and 'brBB+' national scale ratings. The
positive CreditWatch listing reflects a potential one-notch upgrade
if the company successfully places the proposed notes and use the
proceeds to prepay short-term debt maturities, alleviating
liquidity pressures and strengthening its capital structure,
enabling CSN to address the vast majority of its obligations until
the end of 2020.

The CreditWatch placement reflects S&P's view that the issuance of
the proposed notes, along with the currently stronger operating
performance, will improve the company's capital structure and
relieve liquidity pressures for at least the next 18-24 months.
This comes along with CSN's recent bilateral debt refinancing
through Brazilian banks, as well as the sale of CSN LLC in the U.S.
and the prepayment transaction with Glencore, which brought about
R$3.5 billion of cash to meet the company's 2019 obligations.

The gradual recovery in the domestic steel demand and the price
adjustments the company was able to apply, combined with the spike
in iron ore prices in the past few months, will help to boost its
cash generation in 2019. S&P believes CSN continues focusing on
deleveraging, including asset sales to strengthen its liquidity and
capital structure on a sustainable basis. According to S&P's
calculations, there would still remain a liquidity gap of R$1
billion – R$2 billion (depending on the proposed issuance amount)
until the end of 2020. The company could address the gap through
further debt refinancing or a combination of the sale of its German
operations, the sale of Usiminas' preferred shares, or an iron ore
streaming transaction in the upcoming months. CSN could also meet
the liquidity gap if iron ore prices remain above $80 per ton and
steel volumes in the domestic market increase faster than

In S&P's view, the upgrade potential is limited to one notch. S&P
understands CSN has significant maturities at its holding companies
(Vicunha Acos and Rio Iaco) that require dividend payments to meet
amortization schedules. Conservative financial policies and the
maintenance of smoother debt amortization profile will be main
rating drivers.

CSN RESOURCES: Moody's Rates New $750MM Sr. Unsec. Notes 'B3'
Moody's Investors Service assigned a B3 rating to the $750 million
proposed senior unsecured notes due up to 7 years to be issued by
CSN Resources S.A. and unconditionally guaranteed by Companhia
Siderurgica Nacional (CSN) (B3 stable). The outlook is stable.

The proposed issuance is part of CSN's liability management
strategy and proceeds will be used to fund a tender offer of $750
million for CSN's notes maturing in 2019 and 2020.

The rating of the proposed notes assumes that the final transaction
documents will not be materially different from draft legal
documentation reviewed by Moody's to date and assume that these
agreements are legally valid, binding and enforceable.

Ratings Assigned:

Issuer: CSN Resources S.A.

  - $750 million Gtd Senior Unsecured Notes due up to 7 years: B3
(global scale)

The outlook is stable.


CSN's B3 ratings reflect the company's position as a leading
manufacturer of flat-rolled steel in Brazil, with a favorable
product mix focused on value-added products. Historically, the
company has reported a strong Moody's adjusted EBITDA margin at
20%-30% (20% in 2018), supported by its solid domestic market
position, wide range of products through different segments and
globally competitive production costs in both steel and iron ore.

However, the ratings are constrained by the company's unsustainable
capital structure and weakened credit metrics, namely, high
leverage, low interest coverage and deteriorated cash flow metrics.
Despite the company's debt refinancing efforts that addressed short
to medium-term maturities and the expected improvement in cash
flows, gross debt to EBITDA will remain in the 4.5x to 5.5x range
until 2019 (6.3x in 2018). Accordingly, CSN relies on asset sales
or a capital increase to be able to reduce debt levels in a more
meaningful magnitude.

Since the beginning of 2018, CSN has pursued several initiatives to
address its short-term debt and improve liquidity, including (i)
debt renegotiations with Banco do Brasil S.A. and Caixa Economica
Federal (CAIXA) — collectively BRL14 billion and equal to 47% of
CSN's total reported debt; (ii) a $350 million bond issuance; (iii)
the refinancing of BRL1.0 billion in debt due in 2019 with Banco
Santander (Brasil) S.A.; (iv) a BRL1.95 billion issuance of
debentures due in 2023; and (v) an iron ore prepayment deal of $500

The proposed transaction is part of CSN's liability management
strategy and proceeds will be used in a tender offer mainly for
CSN's outstanding notes due 2019 and 2020, thus lengthening the
company's debt amortization schedule. Pro forma to the proposed
transaction and to the iron ore prepayment deal concluded in
February 2019, CSN's cash position of BRL5.0 billion will cover
short term debt maturities of BRL3.3 billion by 1.5 time, compared
to a 1.0 time coverage at the end of 2018 (considering only the
iron ore prepayment). Despite the improvement, CSN will still have
sizeable debt maturities of approximately BRL9 billion in 2020-21.
Accordingly, the company will need to keep pursuing additional
alternatives to reduce liquidity pressures and leverage.

Besides all the transactions announced by CSN to date, the company
is also contemplating additional liquidity events such as a roughly
$1 billion iron ore stream deal and the sale of assets, namely its
long steel assets in Germany. If the company is able to refinance
the majority of its notes due 2019 and 2020 with the proposed
issuance, and announces any of these additional liquidity events,
CSN would achieve a material gross debt reduction and a sustainably
enhanced liquidity profile, which would support an improvement in
its credit quality.

The stable outlook reflects the expectations that CSN's liquidity
will remain adequate to service its debt obligations. It also
reflects its expectation that market conditions for steel producers
in Brazil will gradually recover, allowing CSN to direct cash flows
from operations to reduce debt levels.

An upward rating movement would require additional improvements in
liquidity profile and recovery in operating performance. An upgrade
would also be dependent on further adjustments in CSN's capital
structure, with total leverage trending towards 4.5x total adjusted
debt to Ebitda and interest coverage ratios (measured by EBIT to
Interest expenses) above 2.0x on a sustainable basis (1.4x in

The ratings would suffer additional negative pressure if the
company's liquidity position deteriorates, reducing CSN's ability
to address upcoming debt maturities, in particular the 2019 and
2020 bonds. The ratings could be downgraded if performance over the
next 12 to 18 months does not improve such that leverage does not
moderate to at least 5.5x and EBIT/interest remains below 1.5x.

With an annual capacity of 5.9 million tons of crude steel,
Companhia Siderurgica Nacional (CSN) is a vertically integrated,
low cost producer of flat-rolled steel, including slabs, hot and
cold rolled steel, and a wide range of value-added steel products,
such as galvanized sheet and tinplate. In addition, the company has
downstream operations to produce customized products, pre-painted
steel and steel packaging. CSN sells its products to a broad array
of industries, including the automotive, capital goods, packaging,
construction and home appliance sectors. CSN owns and operates cold
rolling and galvanizing facilities in Portugal, along with long
steel assets in Germany through its subsidiary Stahlwerk Thüringen
GmbH (SWT). The company also has a long steel line (500,000 tons
capacity) in the Volta Redonda plant. CSN reported revenues of BRL
22.9 billion ($6.3 billion) in 2018.

FINANCIADORA DE ESTUDOS: Fitch Affirms BB- Rating, Outlook Stable
Fitch Ratings has affirmed the Brazilian public sector entity
Financiadora de Estudos e Projetos (FINEP) at 'BB-' with a Stable
Outlook. Fitch also affirmed national long-term rating at 'AA(bra)'
with a Stable Outlook.


The affirmation of FINEP's ratings reflects the application of
Fitch's Government-Related Entities Rating Criteria (GRE criteria).
FINEP is considered to be a GRE due to its public sector mandate in
financing research and development on behalf of the Federal
Government. As of 2018, FINEP's debt is composed of Federal
Government's funds, directly and indirectly and an external debt
with a multilateral entity, which is fully guaranteed by the
Federal Government.

Under the criteria there are four key factors that Fitch assesses:
strength of linkage includes status, ownership and control, as well
as support track record and expectations. Incentive to support
covers the socio-political implications of a GRE default and the
financial implications of a GRE's default.

Ownership and Control - Very Strong: FINEP is a 100% federally
owned company and is part of the Brazilian ministry of science,
technology, innovation and communication, with the goal of
promoting innovation in several areas including telecommunication,
oil and gas, and healthcare. FINEP offers financing to Brazilian
research institutes and companies engaged in research and
development. Its activities are dictated by the Brazilian

Support Track Record and Expectations - Very Strong: Fitch expects
support to come in the form of credit subsides (equalization). The
equalization mechanism is the coverage of the difference between
the costs arising from the funding and operating costs and the
credit risk incurred by FINEP, and the costs accountable to the
development of technological innovation projects. It is an
instrument that allows access to financing with lower interest
rates, similar to those on the international market.

Socio-Political Implications of Default - Very Strong: In Fitch's
opinion, FINEP holds a relevant and mandatory responsibility to the
government and is the preferred government company aimed at
fostering whole chain of innovation.

Financial Implications of Default -- Moderate: Although FINEP is a
federal financial arm of the ministry of science & technology
focused on innovation, Fitch does not believe FINEP to be a proxy
funding vehicle for the government. Also, unlikely given the longer
term nature of FINEP's liabilities, Fitch believes the default of
FINEP to have limited negative consequences for the
creditworthiness of the federal government.

As such, with an outcome of 45 points under the Government-Related
Entities Criteria, FINEP's ratings are equalized with the Brazil's
IDRs, as per Fitch's approach.


Any rating action affecting the Federative Republic of Brazil
(BB-/Stable) will result in a similar action for FINEP.


Fitch assumes a high level of sovereign support for FINEP even
considering the weak institutional framework given the federal
government's full ownership and ongoing subsidized credit lines via
other federal institutions and federal funds.


Fitch has affirmed the following ratings of FINEP:

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

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

  -- Long-Term Local Currency IDR at 'BB-'; Stable Outlook;

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

  -- National Long-Term rating at 'AA(bra)'; Stable Outlook;

  -- National Short-Term rating at 'F1+(bra)'.

QUEIROZ GALVAO: Files for Bankruptcy For Two Hydroelectric Units
Tatiana Bautzer at Reuters reports that Brazilian construction
conglomerate Queiroz Galvao filed for bankruptcy protection for two
energy units that manage hydroelectric dams in the states of Minas
Gerais and Mato Grosso.

Creditors in March rejected a request to renegotiate the debt out
of court for the two units, Jauru and Santa Clara, according to

Queiroz Galvao is still asking creditors to work outside of court
on the debt of two other units, Queiroz Galvao Energia and Queiroz
Galvao Energia Renovaveis, the report relays.

D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Agro Sector Not Given Importance, Rivero Says
Dominican Today reports that National Agricultural Confederation
(Confenagro) president Eric Rivero has affirmed that the Dominican
Republic government lacks commitment for the country's agricultural

Mr. Rivero maintained that the country lacks lasting initiatives
and works only on the basis of emergencies, the report notes.  "The
entities that collaborate to propel the local agricultural industry
do not have clear and definite goals, which foresee the onslaught
of climate change that affects production so much," the report
quotes Mr. Rivero as saying.

He told El Dia that the State must have goals not as a duty
officer, but for timely follow-up to materialize proposed plans
until they are achieved, the report cites.

According to the report, Mr. Rivero said said that lack of
follow-up has affected the increase in imports of dairy products,
posing a "discouraging panorama" for the country's producers.

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

Dominican Today reports that securities superintendent, Gabriel
Castro, related the approval of Dominican Republic's first initial
public offering (IPO), which he labeled as a milestone for the
country's securities market.

The instrument of public offering, Fideicomiso de Oferta Publica de
Valores Accionario Rica 03 -- FU, will be up to RD$8.0 billion
(US$150 million) to be managed by Universal Trustee, according to
Dominican Today.

"The assets that make up the trust's assets are common shares of
the share capital of Pasteurizadora Rica, S.A. The shares will be
transferred to the trust in successive contributions by the
trustees until reaching a limit of 40% of the shareholding property
of Rica," Dominican Today quoted Mr. Castro as saying.

The trustees that will transfer the assets to the trust will be
Pasteurizadora Rica, S.A. and Consorcio Citricos Dominicanos, S.A.,
represented by Pedro Brache, the Superintendence said in a
statement, Dominican Today adds.

According to analysis by consultant Deloitte, the value of the
shares to be contributed to the trust total RD$9.1 billion. The
shares to be transferred to the trust will participate in the
results of the transactions of Pasteurizadora Rica, S.A, the report

"The securities to be issued will have a maturity of 30 years from
the date of issue of the securities.  They grant to those who
acquire them equity interest in the trust pro rata of the
investment, and will have a variable yield based on the profits or
losses of the trust.  The return on investment is medium to long
term," 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


BANCO AGROMERCANTIL: S&P Withdraws 'BB-/B' Issuer Credit Ratings
S&P Global Ratings withdrew at issuer's request its 'BB-' long- and
'B' short-term global scale issuer credit ratings (ICRs) on Banco
Agromercantil de Guatemala S.A. (BAM). At the same time, S&P
withdrew its 'BB-' issue-level rating on Intertrust SPV (Cayman)
Ltd.'s $300 million senior notes due April 10, 2019. Intertrust SPV
acts as trustee of the Agromercantil Senior Trust. BAM fully
guarantees the notes, so the rating on them was the same as the
long-term ICR on the bank. At the time of the withdrawal, the
outlook was stable.

At the time of the withdrawal, the global scale rating on BAM
reflected S&P's view of it as a core subsidiary of Grupo
Bancolombia. This was because of BAM's integration with the overall
group strategy and its business risk similar to that of its parent
group. The rating on BAM also incorporated its large market share
in Guatemala, particularly in the corporate lending segment, which
helps the bank to maintain operating revenue stability. Despite the
uncertain economic and political conditions, the bank's
deposit-based funding is one of its main strengths, and it provides
BAM with enough liquidity to face short-term obligations.
Additionally, BAM's quality of capital has remained sound due to a
high-quality capital base that consists of paid-in capital,
reserves, and retained earnings. On the other hand, the high share
of dollar-denominated loans in the portfolio is a significant
vulnerability for the bank if the Guatemalan quetzal weakens
against the dollar. Nonetheless, the quetzal-dollar exchange rate
has remained stable during the past few years.


ELEMENTIA SAB: Fitch Puts BB+ IDR on Watch Neg. on Spin-Off Deal
Fitch Ratings has placed Elementia, S.A.B. de C.V.'s Foreign- and
Local-Currency Long-Term Issuer Default Ratings (IDRs) of 'BB+' on
Rating Watch Negative (RWN).

The RWN follows Elementia's proposal to spin-off all of the assets
that comprise the Metals and Building Systems segments into a
newly-created spun-off entity. The cement segment would remain part
of Elementia. Should the spin-off be completed as planned,
Elementia's credit profile would likely be inconsistent with a
'BB+' rating as pure cement regional companies rated at this level
have stronger business profiles, larger scale and more robust
credit metrics than Elementia, which currently benefits from
broader product and geographic diversification with all its
segments. The long-term national scale rating of 'A+(mex)' has also
been placed on Rating Watch Negative.

Fitch expects to resolve the RWN after the spin-off is approved and
the effects on Elementia's capital structure can be determined.
This would include the ultimate debt obligations of Elementia as
well as any contingent implications for bondholders as currently
the notes guarantors include Nacional de Cobre S.A. de C.V.,
Mexalit Industrial S.A. de C.V., and Frigocel S.A. de C.V., which
would become part of the newly-formed spun-off entity. Should the
transaction be approved as planned, the resulting rating action
could be a downgrade of up to two notches from Elementia's 'BB+'
ratings. Elementia's net debt to EBITDA of 3.5x as of YE 2018 is at
the limit of the negative sensitivity trigger considered for the

Elementia's cement business, which consists mainly of three cement
plants in Mexico capable of producing 3.5 million metric tons (MT)
annually and a 55% stake in Giant Cement Holding, Inc. (Giant),
which Elementia consolidates in its results. Giant's capacity is
spread out among three U.S. plants with a total production capacity
of 2.8MT. Elementia generated USD209 million (MXN4 billion) of
EBITDA during 2018 of which 69% was generated by the cement
segment. Elementia's debt as of YE 2018 of USD838 million (MXN16.4
billion) was held either at Elementia or a at Trituradora y
Procesadora de Materiales Santa Anita, S.A. de C.V., which is a
subsidiary within Elementia's Cement Segment.


Fitch expects to resolve the Rating Watch Negative after the
spin-off is approved and the effects on Elementia's capital
structure can be determined.


Fitch has placed Elementia's ratings in Rating Watch Negative as

  -- Long-Term Foreign Currency Issuer Default Rating (IDR) of

  -- Long-Term Local Currency IDR of 'BB+';

  -- Long-Term national scale rating of 'A+(mex)';

  -- Senior unsecured USD425 million notes of 'BB+'.


AES PANAMA: S&P Affirms BB Issuer Credit rating, Outlook Negative
S&P Global Ratings affirmed its 'BB' issuer credit and debt ratings
on the Panama-based power generator, AES Panama S.R.L.

The outlook remains negative, which reflects the possibility of a
downgrade in the next six months if hydrology conditions in Panama
weaken further and/or if AES Changuinola's repair takes longer than
expected, extending AES Panama's exposure to the spot market.

S&P expects lower cash flows for AES Panama, given that it will be
exposed to the spot market because of the nine-month repair
stoppage of AES Changuinola due to a leakage in its water tunnel.
As a result, the plant will be unable to deliver the contracted
energy to AES Panama, while the latter has a long-term power
purchase agreement (PPA) contracts with the power distribution
companies. Therefore, the company will need to buy energy from the
spot market. Moreover, the rainfall level was record low in
December 2018, and S&P expects low hydrology in the first half of
2019. This has caused dispatch of thermal plants, pushing spot
market prices to around $110 per megawatt per hour (MWh); S&P
expects them to increase until May and to fall below $100 per MWh
until July, when the rainy season begins.

The 'BB' ratings continue to incorporate the company's competitive
position as the largest power generator in Panama, offset by the
historical volatility of profitability due to hydrological
exposure. S&P said, "In addition, the ratings reflect our
expectations that AES Panama's cash flow generation will remain in
line with our expectations, with EBITDA margin of around 50% in the
next three years. Moreover, ratings continue to incorporate our
expectations of net debt to EBITDA below 5.0x and funds from
operations (FFO) to debt around 13% for the next two years. Our
base-case scenario assumes low hydrology in the first half of 2019
and normal hydrology afterwards, as well as no delays in AES
Changuinola's repair. In our view, the company's thermal plants
(including AES Colon) and the lower contract levels for the
following years to around 80% mitigate the exposure to hydrology

P U E R T O   R I C O

CHARLOTTE RUSSE: Selling Peek Brand IP & Related Assets for $425K
Charlotte Russe Holding, Inc., and its debtor-affiliates ask the
U.S. Bankruptcy Court for the District of Delaware to authorize the
private sale of intellectual property related to the Debtors' Peek
brand and related assets to Mamiye Brothers, Inc., and Mamiye
Brothers IP Holdings, LLC for $425,000 plus specified cure amounts
for the Purchaser Assumed Contracts, subject to any higher and
better bids.

The Debtors sought to sell the Assets by private sale free and
clear of all encumbrances and interests for the purchase price.    

The Purchase Agreement does not address the use of proceeds
generated from the proposed Sale.  All proceeds will be distributed
pursuant to the Final DIP Order or as otherwise ordered by the

The Debtors do not propose to sell the Purchased Assets free and
clear of any unexpired leasehold interests or other rights.

A copy of the APA attached to the Motion is available for free at:
The Purchasers are:

         1385 Broadway, 18th Floor
         New York, NY 10018
         Attn:  Chuck M. Mamiye
                Gitta Kaplan

The Purchasers are represented by:

         Janet M. Weiss, Esq.
         51 West 52nd Street
         New York, NY 10019-6119

               About Charlotte Russe Holding

Charlotte Russe Holding, Inc., is a specialty fashion retailer of
young women's apparel and accessories comprised of seven entities.
The company and its affiliates are headquartered in San Diego,
California and have one distribution center located in Ontario,
California.  In addition, the companies lease office space in Los
Angeles, California and San Francisco, California, where they
primarily conduct merchandising, marketing, e-commerce and
technology functions.

The companies sell their merchandise to customers in the contiguous
48 states, Hawaii, and Puerto Rico through their online store and
512 Charlotte Russe brick-and-mortar stores located in various
regional malls, outlet centers, and lifestyle centers.  The bulk of
the companies' apparel and accessory products are sold under the
Charlotte Russe brand with ancillary brands for denim and perfume
(Refuge), young women's plus-size apparel (Charlotte Russe Plus),
and cosmetics (Charlotte by Charlotte Russe).

Charlotte Russe Holding and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No.
19-10210) on Feb. 3, 2019.

At the time of the filing, Charlotte Russe Holding estimated assets
of $100 million to $500 million and liabilities of $100 million to
$500 million.

The cases are assigned to Judge Laurie Selber Silverstein.

The Debtors tapped Bayard, P.A. and Cooley LLP as their bankruptcy
counsel; Guggenheim Securities, LLC as their investment banker; A&G
Realty Partners, LLC as lease disposition consultant and business
broker; Gordon Brothers Retail Partners LLC, Hilco Merchant
Resources LLC and Malfitano Advisors, LLC as liquidation
consultant; and Donlin, Recano & Company, Inc., as claims and
noticing agent.

KONA GRILL: Delays Annual Report Due to CEO's Departure
Kona Grill, Inc. has filed with the U.S. Securities and Exchange
Commission a Notification of Late Filing on Form 12b-25 with
respect to its Annual Report on Form 10-K for its fiscal year ended
Dec. 31, 2018.  The Company said its Annual Report could not be
filed within the prescribed time period because Marcus Jundt, the
chief executive officer of the Company, resigned effective March
31, 2019.  In accordance with Rule 12b-25 of the Securities
Exchange Act of 1934, the Company intends to file its Form 10-K no
later than the fifteenth calendar day following the prescribed due
date.  The Company's new principal executive officer will duly
execute and certify the financial results.

The changes in the Company's results of operations will be
significant in that revenue has decreased 12.4% and the net loss
increased to approximately $32 million, primarily because of a
decline in same-store sales of 12.3% since the comparable period
for 2017 and $18.3 million of non-cash asset impairment charges for
certain underperforming restaurants.

                         About Kona Grill

Kona Grill, Inc., headquartered in Scottsdale, Arizona, Kona Grill,
Inc. -- 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 $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.

"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," the Company stated
in its Quarterly Report for the period ended Sept. 30, 2018.

SKYTEC INC: LogiSYS Seeks Ch. 11 Trustee Appointment
Creditor, LogiSYS Systems, Inc., asked the U.S. Bankruptcy Court
for the District of Puerto Rico to order the appointment of a
Chapter 11 trustee for Skytec, Inc.

The Creditor's request was made following the Court's opinion that
the Debtor's misconduct has been deliberate, and its withholding of
crucial documents has severely prejudiced the Creditor.

Further, the Creditor pointed out that an analysis of the
Debtor's Statement of Financial Affairs, the Monthly Operating
Reports and the proposed Disclosure Statement reveal that, before
and after the Petition Date, the compensation granted to the
Debtor's president, Mr. Henry Barreda, to the independent
contractor acting as CFO Ms. Annie Astor, the spouse of the
Debtor's only other shareholder, Mr. Miguel Carbonell, and to the
Debtor's Sales Manager, Ms. Nadja Gonzalez, are excessive and
burdensome for the operation of the business and have hindered and
delayed the interests of the Debtor's creditors.

Therefore, the Creditor believed that a Chapter 11 trustee is
necessary to administer the operations of the business of Skytec
Inc.'s estate and file collection proceedings against the affiliate
companies, shareholders and debtors of substantial amounts to the

LogiSYS Systems is represented by:

     Carlos A. Rodriguez-Vidal, Esq.
     Solymar Castillo Morales, Esq.
     San Juan, PR 00936-8364
     Tel: (787) 759-4117
     Fax: (787) 767-9177

        -- and --

     Bryan T. Glover, Esq.
     1111 Third Avenue, Suite 3000
     Seattle, WA 98101
     Tel: (206) 447-4400
     Fax: (206) 447-9700

                 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: WITCO Laments Decline in Consumer Confidence
Trinidad Express reports that T&T-based producers of fast-moving
consumer goods -- cigarette manufacturer WITCO and fast foods
company, Prestige Holdings Ltd -- have complained that the slowdown
in economic activity is causing a fall in consumer confidence and a
decline in the disposal income of consumers.

At the WITCO annual general meeting at the Hyatt hotel in Port of
Spain, the cigarette producer's chief executive, Jean-Pierre du
Coudray, said: "The economic environment for the T&T market showed
some recovery for at least the first half of 2018, where revenues
from the energy sector improved," according to Trinidad Express.


SANCOR SEGUROS: Fitch Affirms B+ IFS Rating, Outlook Stable
Fitch Ratings has affirmed Sancor Seguros S.A.'s Insurer Financial
Strength (IFS) rating at 'B+'. The Rating Outlook is Stable.


The rating reflects the company's moderate business profile, below
average financial performance, and above average leverage metrics.
Sancor operates in a narrow and highly concentrated Uruguayan
insurance industry where the state-owned insurer writes 66% of the
total premium (USD1,413 million). Sancor is the fifth largest
insurer in Uruguay with a 3.0% market share. While participating in
all business lines, approximately 78% of the company's premiums
come from auto, traditional life, and agricultural insurance.

In 2018, Sancor had an overall net loss due to elevated acquisition
costs and a difficult operating environment. Combined ratio
increased to 110.0% from 105.1% in 2018. The company has generated
net losses in three of the last five years. Fitch expects operating
results to improve in 2019.

At year-end 2018, Sancor's net leverage increased to 5.4x from 4.6x
due to an accounting change and overall growth. This places the
company's net leverage in the upper range of the Uruguayan
insurance industry. Fitch will be closely monitor leverage trends
given the company's limited financial flexibility where the only
funding sources available are earnings retention and potential
contributions from Sancor's parent, Grupo Sancor, an Argentinian
holding company.

Over 98% of Sancor's investments are Uruguayan government
instruments or other securities highly correlated to the sovereign.
Fitch rates Uruguay 'BBB-'/Rating Outlook Negative. If the
sovereign rating is downgraded, all the country related investments
would become non-investment grade, pressuring the company's current
investment and liquidity risk.


The rating could be upgraded with improved business profile from
enhanced operating scale and diversification, favorable sustained
financial performance, and enhanced financial flexibility through
backup or contingent well-balanced and diverse financing sources.
The rating could be downgraded if current adverse financial
performance persists and leverage continues to increase.


VENEZUELA: Central Bank Sends Workers Home Amid Water Interruption
Patricia Laya and Alex Vasquez at Bloomberg News report that
Venezuela's central bank has been operating with an emergency team
of only about 100 workers since a power outage left its
headquarters without running water, according to four people with
direct knowledge of the situation.

Most of the bank's 2,000 employees were sent home when the lights
went off in Caracas on March 25 -- and haven't been able to return
since, said the people on condition of anonymity, according to
Bloomberg News.  The emergency group has been working from a
library with the help of water tanks, focused on vital tasks to
keep operations going, such as transactions between local banks and
reserves, they added, Bloomberg News relays.

Bloomberg News discloses that the central bank's situation
underscores the disarray inside President Nicolas Maduro's
administration.  Bathrooms have no water and the building has no
air conditioning as a power crisis exacerbated water shortages in
the Venezuelan capital amid a drought, Bloomberg News.  Employees
don't know when they will be able to return to work, Bloomberg

While a power rationing announced by Maduro late last month has so
far exempted the capital, electricity has been intermittent,
keeping vital pumps from reservoirs off line, Bloomberg News notes.
Caracas, 900 meters (2,950 feet) above sea level, gets its water
from the Tuy system of reservoirs, whose pumping stations require a
minimum of 600 megawatts to operate, Bloomberg News says.

Venezuelans poured into the streets, demonstrating against the
near-total breakdown in public services and rallying behind
National Assembly leader Juan Guaido, who claims to be the
country's rightful president, Bloomberg News adds.


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
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