TCRLA_Public/190418.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

          Thursday, April 18, 2019, Vol. 20, No. 78

                           Headlines



B R A Z I L

BRAZIL: Lawmakers Delay Pension Reform Vote in Blow to Bolsonaro
CYRELA COMMERCIAL: Moody's Alters Outlook on Ba3 CFR to Positive
EVEN CONSTRUTORA: Moody's Withdraws 'B1/Baa2.br' CFRs
MINAS GERAIS: S&P Affirms 'SD' Global & National Scale Ratings


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Does Not Expect Foreign Exchange Pressures
DOMINICAN REPUBLIC: Plague Affects Avocado Production in Some Areas


M E X I C O

DEUTSCHE BANK MEXICO: Moody's Confirms 'ba2' BCA, Outlook Negative


P A R A G U A Y

BANCO CONTINENTAL: Moody's Affirms ba2 Baseline Credit Assessment


P U E R T O   R I C O

INVERSIONES CARIBE: Seeks Court Approval to Hire Expert Witness
PONCE REAL: Taps Lemuel Colon as Special Counsel


T R I N I D A D   A N D   T O B A G O

TRINIDAD PETROLEUM: Pushes Billion-Dollar Debt Repayment to 2026
TRINIDAD PETROLEUM: S&P Rates New Secured Notes Due 2026 'BB'


X X X X X X X X

TRINIDAD PETROLEUM: Moody's Gives Ba3 CFR & Rates $425MM Notes Ba3

                           - - - - -


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B R A Z I L
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BRAZIL: Lawmakers Delay Pension Reform Vote in Blow to Bolsonaro
----------------------------------------------------------------
Paulo Trevisani at The Wall Street Journal reports that Brazilian
lawmakers delayed a vote on pension reform legislation, dealing a
blow to President Jair Bolsonaro's policy agenda and irking
investors who hope the overhaul will bolster Latin America's
largest economy.

Opposition lawmakers managed to push back, likely into, the first
of several votes needed to approve a bill proposed by Mr. Bolsonaro
that imposes tougher retirement rules, according to The Wall Street
Journal.

The report notes that investors worry delays could end up killing
the attempt to fix a pension system that costs taxpayers $60
billion a year and has caused Brazil's debt to swell to close to
80% of gross domestic product.

The bill amends the constitution and requires 308 out of 513 votes
in the Lower House before moving to the Senate. A final vote is
months away, the report says.

It must pass this year, analysts say, because in 2020 lawmakers
will turn their focus to elections in thousands of municipalities
key to their political ambitions and likely stay away from the
thorny issue of pension reform, the report discloses.

"This delay is bad, no doubt," said Solange Chachamovitz, chief
economist at asset-management firm ARX Investimentos, the report
notes.  "Markets would be very disappointed if the reform is not
approved this year," he added.

The report says that Mr. Bolsonaro has been criticized for not
building a strong coalition in a fractious Congress where 28
parties fight for power.  The president has said that alliance
building has led in the past to widespread corruption, the report
relays.

But the president's attempt to avoid what he calls old politics has
become a threat to the pension reform experts see as fundamental to
revive an economy that is barely growing 1% a year, the report
notes.

"Bolsonaro doesn't have a majority in Congress and isn't able to
pass legislation," said Paulo Carlos Calmon, a social scientist at
the University of Brasilia, the report notes.  "His strategy [of
avoiding alliances] is a risky one and it is not working," he
added.

The House's constitution committee, the first step any bill needs
to clear in the Brazilian congress, opened a discussion on pension
reform that could go into the night, the report says.

Camila Abdelmalack, an economist with brokerage firm CM Capital,
said there was still a slim chance that a vote could happen on,
before congressmen take off for the extended Easter holiday, the
report relays.

"If [the House leadership] strives to get it done and a vote
happens tomorrow, that'll be great," Ms. Abdelmalack said, the
report adds.

As reported on the Troubled Company Reporter-Latin America on Feb.
11, 2019, S&P Global Ratings affirmed its 'BB-/B' long- and
short-term foreign and local currency sovereign credit ratings on
Brazil. The outlook on the long-term ratings remains stable. At the
same time, S&P affirmed its transfer and convertibility assessment
of 'BB+'. S&P also affirmed its 'brAAA' national scale rating, and
the outlook remains stable.


CYRELA COMMERCIAL: Moody's Alters Outlook on Ba3 CFR to Positive
----------------------------------------------------------------
Moody's America Latina has affirmed Cyrela Commercial Properties
S.A.'s Ba3 (global scale) / A1.br (national scale) corporate family
ratings as well as its Ba3 (global scale) / A2.br (national scale)
senior unsecured rating. In the same action, the rating agency
revised the company's rating outlook to positive from stable.

The following ratings were affirmed:

  Cyrela Commercial Properties S.A. -- Ba3 / A1.br corporate family
rating

  Cyrela Commercial Properties S.A. -- Ba3 / A2.br senior unsecured
rating

Outlook action:

  Outlook revised to positive from stable

RATINGS RATIONALE

The affirmation of Cyrela Commercial Properties' global and
national scale ratings, and the revision of its rating outlook to
positive from stable takes into consideration the company's
position as one of the leading owners and developers of corporate
office towers and shopping malls in Brazil, the improvement in its
leverage metrics and higher earnings from its high-quality
portfolio, bolstered by the strengthening economy. Brazil's
economic rebound has led to the recovery of the Sao Paulo property
market, where most of CCP's assets are predominantly located. In
2018 the Class A/A+ office market experienced an increase in net
absorption as more corporate tenants continued a "flight to quality
and price" to top-quality office space and as new supply is
projected to decline in the next several years. Stronger business
and consumer confidence as well as increases in private consumption
has led to a surge in retail sales, benefitting CCP and the broader
shopping mall sector. Additionally, Moody's forecast's Brazil's GDP
to grow on average approximately 2.4% between 2019-2020, supported
by a low interest rate/low inflation environment and better
business sentiment. The prospect of pension reforms under President
Jair Bolsonaro's administration would be constructive for more
sustainable growth in the medium term.

As of December 31, 2018, CCP's book leverage, defined as total debt
plus preferred equity to gross assets, and its net debt plus
preferred equity to EBITDA were 46% and 5.1x, respectively,
compared to 49% and 8.2x at the end of the first quarter of 2017
when Moody's initially rated the company. Important to note is that
the company records its investment properties on an undepreciated
historical cost basis, which was approximately R$2.8 billion, as of
year-end 2018. Based on the reported current fair value of R$5.57
billion, CCP's market value leverage was approximately 30% for the
same period. The decrease in the firm's net debt to EBITDA was a
result of the company's focus on debt reduction and liability
management as well as increase in the portfolio occupancy levels.

Additionally, CCP has a diversified portfolio, consisting of Class
A/A+ corporate towers, of which several have LEED classifications,
as well as its shopping malls, of which the majority were
constructed between 2012 and 2016. The portfolio's physical and
financial occupancies in the mall and office segments, rose to
approximately 93% and 94%, respectively, in 2018 compared to 87%
and 90%, as of year-end 2017. Increased rent revenues resulted in a
net operating income (NOI) growth of 8% to R$321 million in 2018
over the prior year. EBITDA margins remain solid in the low 50%
range. The company's good financial flexibility is bolstered by its
fixed charge coverage ratio, which rose to approximately 1.6x from
0.9x at year-end 2017, and a substantial unencumbered asset pool,
representing approximately 57% of gross assets.

These credit strengths, however, are partially offset by the
company's elevated near-term debt maturity and lease rollover risks
and high secured debt levels, which represented 41% and 90% of
gross assets and total debt at year-end 2018. Positively, the
company has no exposure to foreign debt. While there is significant
geographic concentration in the city of Sao Paulo, this risk is
mitigated by the vibrancy and resiliency of the city and the
state's economy.

The positive rating outlook is based on the expectation that the
company will continue to lower its leverage levels through its
liability management plan while improving the portfolio's
operational performance and profitability, as the economy continues
to expand.

An upgrade of CCP's ratings would be predicated upon the company
achieving the following criteria on a sustained basis: 1)
maintenance of a cash balance between R$200 to R$400 million to
meet its debt obligations and short-term liquidity needs; 2) book
leverage below 40%; 3) net debt to EBITDA (adjusted for any
acquisitions) below 5.0x; 4) secured debt at or below 35% of gross
assets and 5) fixed charge coverage ratio above 2.0x; 6)
unencumbered assets remaining above 50% of gross assets.
Additionally, an increase in CCP's owned share of the total
portfolio would be credit positive.

Downward rating movement or a return to a stable outlook would
likely result from the following criteria on a sustained basis: 1)
a loss of liquidity to cover 24 months of debt obligations; 2) book
leverage approaching 50% of gross assets; 3) net debt to EBITDA
above 6.0x; 4) a significant decline in the portfolio's occupancy
rate or a 10% decline in EBITDA margins; and 5) fixed charge
coverage ratio approaching 1.20x. Lastly, downward rating pressure
on Brazil's credit profile would also negatively affect the
company's ratings and outlook.

The last rating action was on July 25, 2017, when Moody's assigned
for the first time a corporate family rating of Ba3 (global scale)
/ A1.br (national scale), and assigned a Ba3 (global scale) / A2.br
(national scale) senior unsecured rating. The rating outlook was
stable.

Based in Sao Paulo, Brazil, Cyrela Commercial Properties S.A.
[BM&BOVESPA: CCPR3] was spun off in 2007 from Cyrela Brazil Realty,
one of the country's largest commercial/residential developers. CCP
was organized to own, acquire, invest in and manage trophy office
towers, shopping centers and logistic/distribution centers. As of
year-end 2018, the company's owned share of the total portfolio's
gross leasable area (GLA) was approximately 232,000 square meters.
The portfolio comprised 21 operating properties, of which there
were 14 corporate office towers and seven shopping malls.


EVEN CONSTRUTORA: Moody's Withdraws 'B1/Baa2.br' CFRs
-----------------------------------------------------
Moody's America Latina has withdrawn Even Construtora e
Incorporadora's B1/Baa2.br corporate family rating and senior
unsecured ratings.

The following ratings were withdrawn:

   - Corporate Family Rating, B1/Baa2.br
                                                           
   - BRL87 million senior unsecured debentures due in 2019
     (9th issuance), B1/Baa2.br

Prior to the withdrawal, the outlook on the rating was stable.

RATINGS RATIONALE

Moody's has decided to withdraw the ratings for its own business
reasons.

The last rating action on Even was taken on May 28, 2018 when
Moody's affirmed the company's B1/Baa2.br ratings and changed the
outlook to stable from negative.

Headquartered in Sao Paulo and established in 1974, Even
Construtora e Incorporadora S/A (Even) is a real estate developer
with activities in the states of Sao Paulo, Rio de Janeiro and Rio
Grande do Sul and focus on residential developments, with average
units priced above BRL350,000. The company is vertically
integrated, executing all real estate development phases from the
analysis of the prospective land to the construction of the units
and sale to the final homebuyer. In 2018, Even reported
consolidated net revenue of BRL1.5 billion and net losses of BRL141
million, mainly related to the accounting impact of sales
cancellation and non-cash provisions.


MINAS GERAIS: S&P Affirms 'SD' Global & National Scale Ratings
--------------------------------------------------------------
S&P Global Ratings affirmed its global scale and national scale
ratings on the state of Minas Gerais at 'SD'.

Rationale

S&P said, "The ratings on Minas Gerais reflect our opinion that it
will continue to selectively default on its local and foreign
currency debt obligations, given the current fiscal and liquidity
weaknesses. We would only raise the ratings once the state presents
a feasible and credible plan for a full and timely payment of all
debt obligations."

During the past few years, Minas Gerais has posted weak fiscal
results, in part due to lack of capacity to implement effective
policies to control expenditures amid limited revenue growth. In
2018, the state reached a record deficit after debt repayment of
R$10 billion or 14% of annual total revenue. Minas Gerais' new
administration is planning to join Brazil's fiscal consolidation
regime in exchange for broader support from the central government.
Among other measures, adherence to the regime requires a pension
reform and privatization of state assets. However, S&P expects
Minas Gerais to show only modest progress on this front, and our
base-case scenario estimates operating deficits around 8% of
operating revenues and deficits after capital expenditures (capex)
around 9% of total revenues in 2019-2021.

The fiscal consolidation regime, in our opinion, won't be enough to
address Minas Gerais' fiscal malaise because its budgetary
constraints are likely to remain for the next couple of years.
Given that Minas Gerais' own-source revenues already cover slightly
more than 80% of operating revenues, any future tax hikes will
likely yield only moderate benefits. Conversely, the state's capex
are extremely low, likely to remain at around 2% of total spending
during 2019-2021, making further cuts unlikely. Therefore,
addressing Minas Gerais' fiscal woes will be on the operating
expenditure side, but significant cuts are unlikely in the next
12-24 months.

S&P said, "Given Minas Gerais' frequent debt service defaults, we
don't expect the state to access new borrowings in 2019. Therefore,
we expect a gradual reduction in its debt stock, trending towards
130% of operating revenues by 2022. Minas Gerais owes about 80% of
its debt to the sovereign, while the remainder consists of
commercial, development bank, and multilateral debt. "If we we're
to assume that Minas Gerais is current on all obligations, total
interest burden would be around 5.5% of operating revenues, while
debt service would represent around 10% in 2019-2021. Also, the
state's pension deficit is higher than 100% of its operating
revenues, and annual cost already represents 10% and is continuing
to rise.

"Minas Gerais' liquidity position is very weak, as seen in its
frequent failure to meet all debt service obligations and
substantial amount of payables. We estimate that the state's free
cash is close to zero (gross cash is mostly committed to previous
years' unfunded budget), while cash flow deficits estimated for
2019 result in a debt service coverage ratio of -20.5%. Minas
Gerais' non-debt payables also rose to R$34.7 billion as of the end
of 2018 from R$21 billion in 2017, or 48% of operating revenues,
which leads us to believe that there could be also a significant
amount of underestimated spending."

Minas Gerais has moderate contingent liabilities, the largest of
which stems from several state-owned companies including Companhia
Energetica de Minas Gerais - CEMIG (B/Stable/--) and Banco de
Desenvolvimento de Minas Gerais S.A. - BDMG (B/Negative/--), which
we consider self-supporting entities. In addition, the state has 10
public-private partnerships (PPPs) and S&P incorporates the
contingent liabilities stemming from them in our analysis. If the
contingent liabilities from the self-supporting entities and PPPs
were to materialize, they would represent around 16% of the state's
2018 operating revenue.

Romeu Zema became Minas Gerais' governor on Jan. 1, 2019 (Partido
Novo, 2019-2022) and currently faces a precarious fiscal and
liquidity situation, and a very high debt level. The new
administration is planning to take steps to strengthen the fiscal
situation, such a recent agreement with the municipalities to
address arrears on transfers, which would reduce the overall
payables amount over time. Moreover, in addition to joining the
fiscal consolidation regime, an administrative reform is in the
works, aiming for a more efficient government structure.
Nevertheless, the governing party has a relatively weak position in
the state legislature, coupled with a very short track record of
passing and implementing unpopular fiscal measures, which results
in ongoing uncertainty about the administration's capacity to pass
and implement reforms.

S&P said, "We estimate that the state's GDP per capita was $8,854
for 2018, compared with than Brazil's $7,785. Minas Gerais' economy
generates around 8.7% of the national GDP. Most of the state's
economy is based on the services sector, which accounts for a 58%
share, while the manufacturing sector makes up 33%, and agriculture
9%. Minas Gerais posted a slightly better GDP growth in 2018,
compared with 2017, and our base-case scenario assumes the state
economy would grow in line with the sovereign's in 2019-2021.

"In addition to Minas Gerais' structural imbalances, we believe
that the intergovernmental system for Brazilian local and regional
governments (LRGs) has prevented the latter from reaching a
revenue-and-expenditure balance due to the system's intrinsic
rigidities. Overall, our current assessment draws on our evaluation
of an intrinsically rigid intergovernmental system that has failed
to address LRGs' significant budgetary imbalances, and this isn't
likely to change over the short to intermediate term. Therefore,
these factors, in our view, have left LRGs unprepared to address
key long-term spending trends and financing options. At the same
time, we believe the system continues to have an adequate level of
fiscal predictability and transparency, with enhanced central
government oversight of LRGs' finances."

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

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

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

  Ratings List
  Ratings Affirmed
  Minas Gerais (State of)

  Issuer Credit Rating SD/--/--
  Brazil National Scale SD/--/--




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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: Does Not Expect Foreign Exchange Pressures
--------------------------------------------------------------
Dominican Today reports that according to the expectations of the
Dominican economic authorities, no foreign exchange pressures are
expected in the short term this year.

As reported in the Macroeconomic Framework document recently
published by the Ministries of Economy, Planning, and Development,
Finance and the Central Bank of the Dominican Republic, which, for
the time being, expect the December exchange rate to be around
RD$53.10 per dollar, according to Dominican Today.

"Given that the currency's influence on the economy is maintained,
there should not be a notable hint of foreign exchange pressures in
the short term.  Consequently, the exchange rate change in the
medium term is expected to return to a rate equal to general
inflation as of 2020 and, therefore for the years 2020, 2021 and
2022, the previous estimates of the average exchange rate in the RD
will remain stable.  RD$54.26, RD$56.43 and RD$58.69 per dollar,
respectively," according to the intergovernmental report, Dominican
Today cites.

However, the level of exchange depreciation expected for this year
will be higher than that registered in 2018, the report discloses.
The projections included in the Macroeconomic Framework for March
indicate that the value of the US currency with respect to the
Dominican peso will rise from RD $ 50.39 at the close of 2018 to
RD$53.10 per dollar expected at the end of this year, which would
imply an estimated Dominican peso devaluation of 5.4%, the report
notes.  The exchange depreciation last year was 4.4%, the report
relays.

One of the elements that affect the pressure on the US currency is
the rise in the prices of hydrocarbons in international markets,
due to the impact it has on the government bill of the electricity
subsidy, the report says.  Moreover, although oil prices have
increased in recent weeks, the Dominican government does not see
fit to increase the rate at which hydrocarbons are calculated for
budgetary purposes, the report relays.

In this sense, the estimate of the average price of West Texas
Intermediate oil (WTI) made by the government for this year stands
at US $ 60.5 per barrel, although last year the level of the
quotation had already closed at around US $ 65 per barrel, the
report notes.  For this April 12, the price of WTI had risen to US
$ 63.89/barrel, above the level estimated for this year, the report
says.

Texas oil has influenced the rise, the report adds.

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


DOMINICAN REPUBLIC: Plague Affects Avocado Production in Some Areas
-------------------------------------------------------------------
Dominican Today reports that the plague Xylosandrus Compactus has
affected avocado production by more than 50% in the communities of
Cambita and Valdesia in San Cristobal province in the Dominican
Republic.  According to the leader of the National Avocado Cluster
of the National Agricultural Confederation (Confenagro), Dawlin
Urena, plague fell to the plants after they were weakened due to
the excess rainfall that this area experienced, the report notes.

He said that when production is affected, they have not been able
to fulfill the commitments assumed with Banco Agricola, a bank that
is demanding the payment of interest and capital, according to
Dominican Today.

"We need the Agricultural Bank to allow us to pay just the interest
because it is not impossible to also pay the capital to refinance
the debts as they intend to do this year," explained the producer,
considered the largest in that area with more than six thousand
tasks, the report says.

According to his calculations, more than half of the 2,400
producers of avocado that he claims to have in Cambita, were
affected by the pest, so that production did not generate the
projected resources, the report discloses.

"In Cambita, we have about 130,000 tasks planted with avocado, of
those, I am sure that some 80,000 were affected because most of the
avocado in Cambita is planted in low areas, specifically, those
were the most affected areas," the report quoted Mr. Dawlin Urena
as saying.

The affected producers intend to form a delegation to go to the
general manager of the Bagricola, Carlos Segura Foster, to raise
the problem, the report relays.  In this way, they seek an
evaluation to substantiate their claims, the report notes.

"This has been a serious matter, so much so that the department of
plant health of the Ministry of Agriculture came to my farm to
evaluate the matter and it was they who helped us detect the
insect. So, they are aware that this year we had a very bad year in
terms of recovering the capital," he added.

Diario Libre spoke with other producers in the area, who say they
cannot borrow money in the informal sector because it would be
worse, the report discloses.

"Half of the inhabitants of Cambita, 42,000 in total, live on the
production of avocado graft, which is a sample of the great growth
that this product has gained.  We produce between 35 and 40 million
kilos of avocado, which represent about 30 million dollars a year,
"said the producer and agricultural leader, the report adds.

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




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M E X I C O
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DEUTSCHE BANK MEXICO: Moody's Confirms 'ba2' BCA, Outlook Negative
------------------------------------------------------------------
Moody's de Mexico confirmed the ratings of Deutsche Bank Mexico,
S.A. (Deutsche Bank Mexico) and of Deutsche Securities Mexico, S.A.
de C.V. (Deutsche Securities Mexico), and changed the outlook to
negative. This rating action concludes the review for downgrade
initiated on  November 4, 2016.

At the same time, Moody's has decided to withdraw the outlooks on
Deutsche Bank Mexico's long-term Mexican National Scale deposit
rating and Deutsche Securities Mexico's long-term global and
Mexican National Scale issuer ratings for its own business reasons.
This has no impact on the outlooks for these entities.

The following ratings and assessments were confirmed:

Deutsche Bank Mexico, S.A. (600069090):

  Baseline credit assessment of ba2

  Adjusted baseline credit assessment of ba1

  Long-term global local currency deposit rating of Ba1,
  outlook changed to negative from rating under review

  Long-term global foreign currency deposit rating of Ba1,
  outlook changed to negative from rating under review

  Long-term Mexican National Scale deposit rating of A1.mx

  Short-term Mexican National Scale deposit rating of MX-1

  Long- and short-term Counterparty Risk Assessments of
  Baa3(cr) and Prime-3(cr)

Deutsche Securities Mexico, S.A. de C.V. (821503957):

Long-term global local currency issuer rating of Ba1

  Long-term Mexican National Scale issuer rating of A1.mx

  Short-term Mexican National Scale issuer rating of MX-1

The following ratings were affirmed:

Deutsche Bank Mexico, S.A. (600069090):

  Short-term global local currency deposit rating of Not Prime

  Short-term global foreign currency deposit rating of Not Prime

Deutsche Securities Mexico, S.A. de C.V. (821503957):

  Short-term global local currency issuer rating of Not Prime

Outlook action

Deutsche Bank Mexico, S.A. (600069090):

   The outlook changed to negative from rating under review

Deutsche Securities Mexico, S.A. de C.V. (821503957):

   The outlook changed to negative from rating under review

RATINGS RATIONALE

Moody's confirmation of the ratings of Deutsche Bank Mexico and
Deutsche Securities Mexico, with a negative outlook, incorporates
the prospect that the subsidiaries will maintain their financial
strength while the parent company Deutsche Bank AG (Deutsche AG,
deposit ratings at A3, negative outlook; baseline credit assessment
(BCA) of ba1), assesses the strategic alternatives available for
its Mexican subsidiaries. The ratings were initially placed under
review in 2016 following a decision by Deutsche AG to sell its
Mexican operations to a domestic investor as part of a broader
scaling back of its global businesses pursuant to its 2020
strategic plan. However, Deutsche AG terminated this agreement in
October 2018, because the terms and conditions necessary for the
deal closing had not been met.

The negative outlook captures Deutsche AG's intent to divest its
Mexican subsidiaries. It also incorporates the progressive decline
in Deutsche Bank Mexico's earnings generation and business
diversification that is occurring as the entity continues to wind
down its activities. Further, the negative outlook on the bank's
ratings is now in line with the negative outlook on its parent's
ratings.

As of December 2018, Deutsche Bank Mexico's assets and income had
declined materially, with its revenues being mostly generated from
the investment of its sizable capital. The Mexican subsidiary
reported a net loss equal to 15% of total assets as of December
2018, mainly driven by non-recurring provisions for a deferred tax
asset write-off that was expected to occur following the sale of
operations, in addition to provisions for potential early
termination of contracts with suppliers and employers upon the
expected exit from the Mexican market. Consequently, Moody's
expects the bank's expenses to be smaller next year, and be
absorbed by its revenues.

Despite the sharp contraction of the balance sheet and recent
negative profit, the bank's ba2 baseline credit assessment remains
appropriate. Deutsche Bank Mexico's capital remains very strong,
evidenced by its adjusted tangible common equity ratio as a
percentage of risk weighted assets of 107% and shareholders' equity
above 80% of total assets as of December 2018. Further, the bank's
liquidity remains strong, with liquid assets amounting to about 86%
of total assets.

Deutsche Bank Mexico's ratings benefit from one-notch uplift from
its ba2 BCA which incorporates Moody's assessment of a high
likelihood of parental support from Deutsche AG given their shared
brand name and despite the marginal business importance of the
Mexican operations to its parent, In turn, as a highly integrated
and harmonized entity, Deutsche Securities Mexico's ratings are in
line with those of Deutsche Bank Mexico. If and when the
subsidiaries are sold, the entities will no longer benefit from
affiliate support from Deutsche AG.

If Deutsche AG decides not to sell its Mexican subsidiaries,
Moody's anticipates an orderly wind down of the Mexican entities'
remaining lines of business, which continue to perform. Should
their situation suddenly deteriorate before the parent can finish
winding them down, Moody's expects that Deutsche AG would provide
the necessary financial support to avoid a failure as the
reputational cost for Deutsche AG's global business of allowing
these entities to fail would likely outweigh the costs of bailing
them out.

WHAT COULD MOVE THE RATINGS DOWN

Deutsche Bank Mexico and Deutsche Securities Mexico's ratings will
likely be downgraded if Deutsche AG sells these entities and
Moody's assesses different willingness and/or capacity of a new
shareholder to provide support. The ratings could be downgraded
more than one notch if the bank's capital declines significantly
upon, or just prior to closing, or if the bank's intrinsic risk
profile looks likely to increase significantly under any new
ownership.

The ratings could be also downgraded if the bank's standalone
credit profile deteriorates significantly as a result of
preparations for any potential sale. This may include a significant
drop in capitalization, caused, for example, by another large
dividend distribution. Recurring losses could also trigger a
downgrade. Deutsche Bank Mexico's deposit ratings and Deutsche
Securities Mexico's issuer ratings could also be downgraded if the
ratings of the parent, currently on negative outlook, were to be
downgraded.

Deutsche Bank Mexico and Deutsche Securities Mexico's ratings are
unlikely to be upgraded given the negative outlook. The ratings
would be stabilized if Deutsche AG announces a sale to another
party whose adjusted BCA is not lower than Deutsche AG's (ba1).

The long-term Mexican National Scale ratings of A1.mx indicate
issuers or issues with above-average creditworthiness relative to
other domestic issuers. The short- term Mexican National Scale
ratings of issuers rated MX-1 indicate the strongest ability to
repay short-term senior unsecured debt obligations relative to
other domestic issuers.




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

BANCO CONTINENTAL: Moody's Affirms ba2 Baseline Credit Assessment
-----------------------------------------------------------------
Moody's Investors Service has affirmed all supported ratings of
Banco Continental S.A.E.C.A., Banco Regional S.A.E.C.A. and Banco
Bilbao Vizcaya Argentaria Paraguay S.A. (BBVA Paraguay), following
the affirmation of these banks' baseline credit assessments (BCAs).
The ratings that were affirmed include all three banks' local and
foreign currency long and short term deposit and counterparty risk
ratings as well as Banco Regional's senior unsecured foreign
currency debt rating of Ba1. The outlook on the ratings is stable.
All three banks' baseline credit assessments and adjusted baseline
credit assessments were also affirmed, along with their long and
short term counterparty risk assessments. At the same time the
rating agency upgraded Banco Basa S.A.'s long term ratings, stable
outlook, and its assessments. The bank's short term ratings were
also affirmed.

Moody's also raised its Macro Profile for Paraguay's banking system
to "Moderate -", from "Weak +", to reflect the country's resilient
economy, which has been growing steadily despite a regional
slowdown in recent years, and its limited susceptibility to
political risk.

The following ratings and assessments were affirmed:

Banco Continental S.A.E.C.A.:

  - Long and short term local currency deposit ratings
    of Ba1, stable outlook and Not Prime,

  - Long and short term foreign currency deposit rating
    of Ba2, stable outlook and Not Prime

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

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

  - Adjusted baseline credit assessment of ba2

  - Baseline credit assessment of ba2

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

Banco Regional S.A.E.C.A.:

  - Long and short term local currency deposit ratings of Ba1,
    stable outlook and Not Prime,

  - Long and short term foreign currency deposit rating of Ba2,
    stable outlook and Not Prime

  - Senior Unsecured foreign currency debt rating of Ba1,
    stable outlook

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

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

  - Adjusted baseline credit assessment of ba2

  - Baseline credit assessment of ba2

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

Banco Bilbao Vizcaya Argentaria Paraguay S.A.:

  - Long and short term local currency deposit ratings of Ba1,
    stable outlook and Not Prime,

  - Long and short term foreign currency deposit rating of Ba2,
    stable outlook and Not Prime

  - Long and short term local currency counterparty risk ratings
    of Baa3 and Prime-3

  - Long and short term foreign currency counterparty risk ratings

    of Baa3 and Prime-3

  - Adjusted baseline credit assessment of ba1

  - Baseline credit assessment of ba2

  - Long and short term counterparty risk assessments of
    Baa3(cr) and P-3(cr)

Banco Basa S.A.

  - Short term local and foreign currency deposit ratings of
    Not Prime

  - Short term local and foreign currency counterparty risk
    ratings of Not Prime

  - Short term counterparty risk assessment of Not Prime (cr)

The following ratings and assessments were upgraded:

Banco Basa S.A.

  - Long term local currency deposit ratings to Ba2 from Ba3,
    stable outlook from positive

  - Long term foreign currency deposit rating to Ba2 from Ba3,
    stable outlook from positive

  - Long term local currency counterparty risk ratings to Ba1
    from Ba2

  - Long term foreign currency counterparty risk ratings to Ba1
    from Ba2

  - Adjusted baseline credit assessment to ba3 from b1

  - Baseline credit assessment to ba3 from b1

  - Long term counterparty risk assessments to Ba1(cr) from
Ba2(cr)

Outlook Actions:

Issuer: Banco Basa S.A.

  Outlook, Changed To Stable From Positive

Issuer: Banco Bilbao Vizcaya Argentaria Paraguay

  Outlook, Remains Stable

Issuer: Banco Continental S.A.E.C.A.

  Outlook, Remains Stable

Issuer: Banco Regional S.A.E.C.A.

  Outlook, Remains Stable

RATINGS RATIONALE

The affirmation of Banco Continental, Banco Regional and BBVA
Paraguay's baseline credit assessments (BCA) incorporate their high
levels of capitalization, stable deposit funding and high levels of
liquidity. All three banks have universal franchises servicing
mainly corporate and small and medium-sized enterprises lending
segments and as of February 2019 Banco Continental and Banco
Regional were the largest and second largest banks by loans,
followed by BBVA Paraguay, ranked fourth. Together, these strengths
help offset asset risk pressures from the banks' high exposure to
the agricultural sector that have led to volatility in problem loan
and restructured loan levels as well as the build-up of foreclosed
assets on bank balance sheets. While the banks have traditionally
reported strong profitability ratios, Moody's notes their lower
than system level loan growth in 2018 in the context of increased
competition for both loans and deposits in the Paraguayan banking
system which compressed spreads. Competition will continue to
pressure the bank's bottom lines in 2019, while at the same time
provisioning expenses for foreclosed assets will also be negative
for profitability.

The upgrade in Banco Basa's BCA and supported ratings reflects its
asset quality, stabilized capitalization and profitability as the
bank has continued its expansion to become a significant universal
banking operation in Paraguay.

BANCO CONTINENTAL

In affirming Continental's ba2 BCA, Moody's took into consideration
its above peer capitalization levels sustained by its strong
earnings generation as well as challenges to its asset risk. As
measured by Moody's tangible common equity (TCE) to risk weighted
assets (RWA), Continental's capitalization ratio of 16.5% was
significantly higher than its peers and bolstered by its strong
profitability as shown by net income to tangible assets of 2.3%.
However, the bank's asset risk is still showing signs of weakness.
While its 60 day problem loan ratio was 1.6% in 2018, refinanced
and restructured loans rose to 3.2% of total loans and importantly
foreclosed assets rose to 2.5% of total loans and represented 33%
of total foreclosed assets in the Paraguayan banking system. The
rating agency expects the bank's asset risk to remain stable at
these levels and its historically high profitability to be
pressured by additional provisioning costs, particularly from
foreclosed assets. Moody's also noted in the rating action that the
bank is the second largest deposit taker in Paraguay and deposits
represented over 70% of total funding. Although the bank has a
greater reliance on market funds than peers, it also held liquid
assets equivalent to 25.4% of its tangible banking assets in
December 2018 that gave ample coverage to market funding risk.

BANCO REGIONAL

The affirmation of Regional's ba2 BCA incorporates its recovering
asset risk and adequate capitalization as shown by its TCE/RWA
ratio of 11.8% as of December 2018, that together offset its weaker
than peers profitability. Regional's operations are focused on
lending to large agricultural corporations, which exposed its asset
risk to deterioration between 2015-17 after the twin shocks of a
currency devaluation and commodity price crash, which led to rising
60 day problem loan and restructured loan ratios. This trend has
since reversed and in 2018, problems loans fell by 70 basis points
to 1.5% and refinanced and restructured loans fell by 90 basis
points to 5.5%. In addition, Regional's asset quality is supported
by reserves that cover problem loans by 146%, as well as guarantees
for over 50% of total loans. The bank's levels of foreclosed assets
fell down to 1.1% in 2018, half the level seen two years earlier.
However, in 2018, Regional reported net income to tangible assets
of 0.8%, its lowest level in four years, due to a combination of
one off expenses and margin compression. Moody's expects Regional's
profitability to continue to be pressured in 2019. Also
incorporated in the rating action are Regional's predominant
deposit funding, equivalent to 68% of total funding, and its access
to dollar based funding sources and credit facilities, that
buttress its liquidity.

BANCO BILBAO VIZCAYA ARGENTARIA PARAGUAY S.A.

In affirming BBVA Paraguay's ba2 BCA, Moody's highlighted its
above-peers problem loan ratio, high capitalization levels and
steady profitability metrics. As a result of its corporate and SME
focused operation with concentration to the agricultural sector,
BBVA's 60 day problem loan ratios jumped to 3.6% in 2016 and stayed
high at 3.3% in 2018, significantly higher than the system's
average of 2.4%. Although, the bank's TCE to RWA of 14.3% along
with reserve coverage of over 100% serves to partially mitigate its
elevated asset risk, the bank will likely continue to report higher
than system problem loan ratios in 2019 . BBVA Paraguay also
reported a net income to tangible assets ratio of 1.7% in 2018, in
line with a year prior. With deposits accounting for almost 90% of
its funding sources, BBVA Paraguay has a lower reliance on market
funds than its peers, which is also backed by sufficient levels of
liquid asset holdings.

BANCO BASA LONG TERM RATINGS AND ASSESSMENTS UPGRADED

The upgrade of Banco Basa's BCA to ba3, from b1, reflects its
improving asset quality, stable capitalization and profitability as
the bank has continued its expansion to become a universal banking
operation in Paraguay.

Banco Basa has grown significantly over the last five years in line
with its strategy to become a universal banking operation,
predominantly serving corporates and small to mid-sized
enterprises. Because of rapid growth, as evidenced by loans
expanding 28% in 2018 versus prior year, the bank's 60 day problem
loan ratio was 1.6%, 80 basis points below the system average of
2.4%. Restructured and refinanced loans accounted for only 0.6% of
the portfolio, lower than the system as a whole, and the bank's
reserve coverage also remains strong at 129% of problem loans. The
build-up of foreclosed assets on its balance sheet has also been
limited at only 0.6% of total loans. Banco Basa intends to continue
growing its loan book at a pace above system levels in 2019 and
2020, although at a slower pace than in previous years, a positive
development that will also support capitalization. However, problem
loan formation at the bank has been inching up since 2016, as a
result of its robust expansion and Moody's expects the bank's asset
risk to be pressured as its loan growth season. Moody's assessment
of Basa's asset risk considers the risks associated with its rapid
growth, concentration in risky sectors and the unseasoned nature of
its loan portfolio.

Although volatile over the last few years, Banco Basa's reported a
TCE to RWA ratio of 12.5% in 2018, down from 14.5% as the bank grew
in 0218The bank's profitability has also shown less volatility than
in the past with Basa reporting net income to tangible assets of
2.5%, down from 3.4% a year earlier but well above the 0.8%
reported in 2015. Along with other banks in the system, Moody's
noted that although Banco Basa's net interest margin fell in 2018,
the bank's bottom line also benefits from its foreign exchange
fees, which are still subject to volatility. In addition, the bank
has set up a new investment banking and fund management subsidiary
company, Basa Capital S.A., which will add diversity to its
earnings generation, helping it manage increases in provisioning
expenses driven by the seasoning of the bank's loan book growth and
ensuring robust profitability.

The ratings upgrade also considered Banco Basa's funding profile
that has shown access to stable and inexpensive deposit funding
which represented almost 72% of total funding as of 2018. In
addition the bank held liquid assets equivalent to 23% of tangible
banking assets, proving an ample buffer against more costly and
less reliable market funds.

RATIONALE FOR MACRO PROFILE CHANGE

Moody's has raised its Macro Profile for Paraguay's banking system
to "Moderate -". This reflects Moody's decision to change its
assessment of the country's economic strength to 'Moderate -' from
'Weak +' and its assessment of susceptibility to event risk to
'Low' from 'Moderate -.

The 'Moderate (-)' assessment of Economic Strength reflects
Paraguay's solid growth trends and limited GDP growth volatility,
with wealth levels that are in line with peers, and ongoing
positive developments in economic diversification that have taken
advantage of the country's abundant hydroelectric energy and low
tax burden. A rising share of value-added agricultural exports,
public investment to upgrade infrastructure, and the development of
a maquila industry serving Brazilian companies have all supported
more stable economic growth in recent years. These factors are
partially offset by Paraguay's relatively small economy, low scores
on competitiveness indicators and the economy's small size.
Paraguay's nominal GDP of around $39 billion in 2017 is smaller
than the $50 billion Ba median, while GDP per capita (PPP basis) of
$12,785 is in line with the $12,007 Ba median. The economy has
grown at an average annual rate of 5.1% during the last five years,
compared to 4.0% for Ba-rated peers, and is one of the fastest
growing economies in Latin America.

The "Low" score for susceptibility to even risk stems from the
country's low score for political risk whereby Moody's does not
expect political events to materially impact credit metrics, lead
to significant changes in economic policies, or impair the
government's willingness or ability to service debt.

Paraguay's level of financial intermediation remains moderate, and
hence there is little risk of a credit bubble, despite returning
loan growth in 2018. While banks continue to be heavily exposed to
the performance of the agribusiness sector, growth in new
industries is helping to reduce concentration risks. Additionally,
financial dollarization remains high, but it poses limited risks to
the banking system because foreign currency loans are generally
extended only to naturally hedged borrowers.

In accordance with Moody's Banks rating methodology, the
macroeconomic environment in which the bank operates. frames credit
analysis. Moody's Macro Profile analysis for each country focuses
on economic and institutional strength, susceptibility to event
risk, credit conditions, funding conditions and the industry
structure.

GOVERNMENT AND AFFILIATE SUPPORT

Banco Continental and Banco Regional's long-term global local
currency deposit ratings of Ba1 derive from their BCAs of ba2 and
incorporates one-notch uplift as a result of Moody's assessment of
a high probability of government support to the bank in an event of
stress, in light of their systemic importance to the Paraguayan
banking system. Similarly, Banco Basa's long-term global local
currency and foreign deposit ratings of Ba2 respectively
incorporate a one-notch uplift as a result of Moody's assessment of
support to the bank in an event of stress.

BBVA Paraguay's long-term global local currency deposit rating of
Ba1 derives from the bank's standalone BCA of ba2 and incorporates
a one-notch uplift as a result of the assessment of high affiliate
support from its parent Banco Bilbao Vizcaya Argentaria S.A.

WHAT COULD CHANGE THE RATINGS UP/DOWN -- BANCO CONTINENTAL

Positive pressure on Continental' standalone BCA could derive from
significant improvement in asset risk indicators, combined with
more diversified loan book, and continued increases in
capitalization levels. The bank ratings would be under stress if
Continental suffered a substantial deterioration in its asset
quality, capitalization or in its core earnings profile. In
addition, a downgrade of the country's deposit ceilings would
affect its deposit ratings.

WHAT COULD CHANGE THE RATINGS UP/DOWN -- BANCO REGIONAL

Regional's standalone BCA could face positive pressure if the bank
reports steady improvement of its financial metrics, particularly
profitability and asset risk, while being able to achieve higher
diversification and reducing sector concentration in its loan
portfolio. Negative pressure could result from deterioration in
asset quality or a further decline in profitability associated with
higher provisions. Additionally, a potential downgrade of
Paraguay's deposit ceilings would affect its deposit ratings.

WHAT COULD CHANGE THE RATINGS UP/DOWN -- BBVA PARAGUAY

Positive pressure on BBVA Paraguay's BCA could result from a
consistent improvement of asset quality, and profitability. The
bank's BCA could become under stress if BBVA Paraguay faces
substantial deterioration in asset quality. A recurring decline in
profitability could also result in downward pressure on the BCA. A
downgrade of Paraguay's deposit ceilings would affect its deposit
ratings.

WHAT COULD CHANGE THE RATINGS UP/DOWN -- BACO BASA

Continued upward pressure on Basa's rating could arise if the bank
is able to improve asset quality and capitalization levels as its
loan book seasons and growth moderates to system levels and
profitability improves. While downward pressure is unlikely given
the ratings upgrade, the outlook could become negative if asset
quality deteriorates significantly and capital and earnings begin
to exhibit volatility.



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

INVERSIONES CARIBE: Seeks Court Approval to Hire Expert Witness
---------------------------------------------------------------
Inversiones Caribe Delta, Inc. seeks authority from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire an expert
witness.

The Debtor proposes to employ Jose Diaz Crespo, a certified public
accountant employed with Dage Consulting, CPA's, PSC, to provide
testimonies at the hearing to consider its motion to use cash
collateral scheduled for April 24. Mr. Crespo will be paid $150 per
hour.

Mr. Crespo, CPA assures the court that he and his support staff are
"disinterested persons" as the term is defined in Section 101(14)
of the Bankruptcy Code.

The firm can be reached at:

     Jose Diaz Crespo, CPA
     Dage Consulting, CPA's, PSC
     340 Industrial Victor Fernadez, Suite 201B
     San Juan, PR 00926
     Phone: (787) 594-1882
     Email: jdiaz@dageconsulting.com

                About Inversiones Caribe

Inversiones Caribe owns a parcel of land in Dorado, Puerto Rico,
which is valued at $6 million, and a commercial property in Ponce,
Puerto Rico, which is valued at $1.4 million.

Inversiones Caribe Delta filed a Chapter 11 petition (Bankr. D.P.R.
Case No. 19-00388) on Jan. 29, 2019.  In the petition signed by
Carlos F. Muratti, president, the Debtor disclosed $7,415,061 in
assets and $3,619,549 in liabilities.  The case has been assigned
to Judge Brian K. Tester.  Carmen D. Conde Torres, Esq., at C.
Conde & Assoc., is the Debtor's counsel.


PONCE REAL: Taps Lemuel Colon as Special Counsel
------------------------------------------------
Ponce Real Estate Corp. received approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to retain Lemuel Negron Colon
Esq., as its special counsel.

Mr. Colon will continue to represent the Debtor in the Title III
bankruptcy case pending before the U.S. District Court for the
District of Puerto Rico, and to serve as notary public for the sale
of certain realties outside the normal course of the Debtor's
business.

The attorney was paid a retainer in the amount of $1,500 for
services related to the Title III bankruptcy case.  Meanwhile, he
will receive compensation at the rate of 1% of the sale-purchase
public deed of the realties sold, plus the corresponding tax stamps
and legal expenses.

Mr. Colon disclosed in court filings that he and his staff are
"disinterested" as defined in Section 101(14) of the Bankruptcy
Code.

Mr. Colon maintains an office at:

     Lemuel Negron Colon Esq.
     1720 Marginal 506, Suite 104
     Legacy Office Park
     P.O. Box 801478
     Coto Laurel, PR 00780-1478
     Tel: 787-840-6719
     Fax: 787-813-0088
     Email: lemuel@coqui.net
            lemuel.law@gmail.com

                   About Ponce Real Estate Corp.

Ponce Real Estate Corp., a real estate company headquartered in
Ponce, Puerto Rico, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-06805) on Nov. 24,
2018.

At the time of the filing, the Debtor estimated assets of $1
million to $10 million and liabilities of the same range.  The
Debtor tapped EMG Despacho Legal, CRL as its legal counsel, and
Tamarez CPA, LLC as its accountant.




=====================================
T R I N I D A D   A N D   T O B A G O
=====================================

TRINIDAD PETROLEUM: Pushes Billion-Dollar Debt Repayment to 2026
----------------------------------------------------------------
Trinidad Express reports that Trinidad Petroleum Holdings Ltd
(TPHL), one of the spin-off companies from the defunct Petroleum
Company of T&T Ltd (Petrotrin), advised bondholders it will
exchange their outstanding Petrotrin bonds early for new bonds with
a maturity date pushed back to 2026 from 2019 and 2022, according
to which bonds they held.

An investor presentation to its bondholders online also outlined
plans to auction off Petrotrin non-operational assets like its
hospital, sports club and land, according to Trinidad Express.

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


TRINIDAD PETROLEUM: S&P Rates New Secured Notes Due 2026 'BB'
-------------------------------------------------------------
On April 16, 2019, S&P Global Ratings assigned its 'BB' issue-level
rating to Trinidad Petroleum Holdings' (TPH's) proposed 9.75%
senior secured notes due 2026 for up to $612.5 million, following
the company's announcement of an offer to exchange these notes and
cash for the outstanding 2019 and 2022 notes.

S&P has also kept its 'BB' issuer credit rating on TPH on
CreditWatch with negative implications, where S&P placed it on Jan.
16, 2019.

The CreditWatch update continues to reflect a possible reassessment
of extraordinary government support. In addition, S&P has assigned
its 'BB' issue-level rating as a result of TPH's offer to exchange
its outstanding 2019 and 2022 notes for new notes for up to $612.5
million due 2026 and cash.

The company plans to repay the 2019 notes through a combination of
a bond exchange--with a cap of $425 million -- and if applicable,
the remainder will be canceled in cash at par, where the funds will
be raised through a secured term loan.

S&P said, "We view the exchange as voluntary because we consider
that even if the company isn't able to raise the funds by its own
means, we assess that there's a very high likelihood that its
owner, Trinidad & Tobago (BBB+/Negative/A-2) would provide timely
and sufficient extraordinary support to the company in the event of
financial distress. Our base-case assessment considers that the
government would have the willingness, financial capability, and
mechanisms for responding to the company's financial needs in a
timely manner if required.

"Our assessment of a very high likelihood of extraordinary
government support is based on our view of TPH's very important
role as the country's sole distributor of refined products and as a
key supplier to Trinidad and Tobago National Petroleum Marketing
Co. Ltd., the operator of the country's major retail gas station
network. We also factor in our analysis that Heritage, a subsidiary
of TPH, is the largest crude producer in the country with an
average annual production of 37,000 barrels of oil per day,
representing around 60% of the country's total annual output. In
addition, given a cash flow shortfall, the company hasn't been
paying taxes, but we expect this situation to change. TPH also has
a very strong link with the government, particularly regarding debt
authorization, budget approval, and tax payments. The government
owns 100% of TPH and is actively involved in the day-to-day
operations and key decisions. In addition, the government has a
long track record of providing support to the company through the
guarantees for several loans and the recent approval of a $175
million short-term loan. Our assessment of a very high likelihood
of government support provides four notches of uplift to the rating
from TPH's 'b-' stand-alone credit profile."




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

TRINIDAD PETROLEUM: Moody's Gives Ba3 CFR & Rates $425MM Notes Ba3
------------------------------------------------------------------
Moody's Investors Service assigned a Ba3 Corporate Family Rating
and a b2 Baseline Credit Assessment to Trinidad Petroleum Holdings
Limited. Simultaneously, Moody's assigned a Ba3 rating to Trinidad
Holding's proposed up to $425 million in guaranteed senior secured
notes and a Ba3 rating to the company's proposed senior secured
term loan. Both the proposed notes and term loan will be guaranteed
by Heritage Petroleum Company Limited (Heritage) and other smaller
subsidiaries of Trinidad Holdings. Proceeds from the transactions
will be used primarily to repay Petroleum Co. of Trinidad & Tobago
(Petrotrin)'s 2019 and 2022 senior notes. The outlook on the
ratings is stable. This is the first time that Moody's assigns
ratings to Trinidad Holdings.

At the same time, Moody's withdrew Petroleum Co. of Trinidad &
Tobago (Petrotrin)'s CFR and upgraded the senior unsecured debt
rating on the company's existing 2019 and 2022 notes to Ba3 from
B1. This rating action completes the rating review started in
September 2018, which was triggered primarily by increasing
liquidity risk related to the approaching maturity of the 2019
bonds.

ISSUERS AND RATINGS ASSIGNED/AFFECTED

Assignments:

Issuer: Trinidad Petroleum Holdings Limited

Baseline Credit Assessment, Assigned b2

Corporate Family Rating, Assigned Ba3

Gtd Senior Secured Bank Credit Facility, Assigned Ba3

Gtd Senior Secured Regular Bond/Debenture, Assigned Ba3

Ratings affected:

Issuer: Petroleum Co.of Trinidad & Tobago (Petrotrin)

Corporate Family Rating, Withdrawn, previously rated B1

Senior Unsecured Regular Bond/Debenture, upgraded to Ba3 from B1

Underlying Senior Unsecured Regular Bond/Debenture, upgraded to Ba3
from B1

Outlook Actions:

Issuer: Trinidad Petroleum Holdings Limited

Outlook, Assigned Stable

Issuer: Petroleum Co.of Trinidad & Tobago (Petrotrin)

Outlook, Changed To Stable From Rating Under Review

RATINGS RATIONALE

Trinidad Petroleum Holdings Limited

The Ba3 ratings on Trinidad Holdings and its proposed notes and
term loan are based on a b2 BCA, which reflects the company's
intrinsic credit risk regardless of government support
considerations. In turn, Trinidad Holdings' BCA is based on the
credit profile of Heritage, the former's main operating subsidiary.
Heritage's credit profile considers its small oil and gas
production and asset base; lack of detailed historical financial
and operating information; and expectation of solid cash generation
and a rapid turnaround in production, which has been declining in
the last several years. Heritage's experienced management profile
also supports Trinidad Holdings' ratings.

Heritage's credit metrics reflect Moody's estimates of solid
operating cash flow from stable oil and gas prices, disciplined
cost management and increasing production, now that management is
focused only in oil and gas Exploration and Production (E&P). For
example, Moody's estimates that, in 2019, Heritage's leverage ratio
will be below 4.5x times debt/EBITDA (net of government loans) and
operating cash generation will be over $260 million, both solid
credit indicators for the b2 BCA category.

However, Heritage's reserve life is low at about 6 years, which
increases execution risk. Despite the company's long operating
history, only recently the E&P industry became a core business.
Therefore, in order to reach an annual reserve replacement rate of
above 100%, as planned, Heritage will have to reduce its operating
costs significantly and work closely with partners to increase
capital efficiency and grow efficiently. Because of Heritage's
current focus on E&P and the caliber of some of its partners (Shell
Oil Company, rated Aa3 stable, and EOG Resources Inc., rated A3
stable), Moody's believes that it is probable that the company will
be successful in achieving its production and reserve replacement
rate targets. However, execution risk is high.

Since Trinidad Holdings' is 100% owned by the Government of
Trinidad & Tobago (Trinidad, Ba1 stable), the company's Ba3 rating
reflects the application of Moody's joint default rating
methodology for government-related issuers (GRIs). Trinidad
Holdings' Ba3 rating benefits from two notches of uplift from the
b2 BCA given Moody's assumption of a high probability of support
from the government of Trinidad in a distress situation. Trinidad
Holdings is strategically important to the energy sector in
Trinidad as demonstrated by its relevant contribution to the
government's fiscal budget of over 6% of total in 2018 and its 60%
market share of the country's E&P production. The government
directly appoints the majority of the company's board members and
is closely involved in Trinidad Holdings' budget approval and
business strategy. The government's ability to provide support to
the company is measured by its Ba1 rating, weakened by the very
high correlation between the government and the company on credit
factors that could cause stress on both simultaneously.

Heritage has adequate liquidity. Moody's expects the company to
keep $200 million in cash at all times, which favorably compares to
annual interest payments of about $100 million, pro forma for the
new transactions. Moody's also expects Trinidad Holdings to
maintain a comfortable debt maturity profile after the closing of
the proposed transactions; the company also counts with the
government of Trinidad to support its liquidity position, in case
of need.

The stable outlook on Trinidad Holdings' Ba3 ratings reflects
Moody's expectation that Heritage will successfully execute its
business plan, while maintaining sound credit metrics; it also
considers that prices for oil and gas will remain relative stable
over the next 12 to 18 months.

Trinidad Holdings' Ba3 ratings could be upgraded if Heritage
manages to increase production and reserve life efficiently, with
minimal deterioration in its financial metrics. Quantitatively, an
upgrade would require that its debt/proved and developed reserves
is consistently below $6 and EBITDA/interest expenses is well above
5 times. An upgrade on the ratings of the government of Trinidad
would not necessarily translate into an immediate upgrade of
Trinidad Holding's ratings.

Trinidad Holding's Ba3 ratings could be downgraded if Heritage's
retained cash flow (funds from operations less dividends) to total
debt declines to around 15%, or if its interest coverage, as per
EBITDA to interest expense, falls to below 2.5 times with limited
prospects of a quick turnaround. In addition, a deterioration of
Heritage's liquidity profile coupled with a slow execution of is
growth plans could lead to a rating downgrade or if the rating on
the government of Trinidad is downgraded.

Trinidad Petroleum Holdings Limited is a holding company 100% owned
by the Government of Trinidad & Tobago and focused on oil and gas
production. The holding company has four operating subsidiaries.

Petroleum Co. of Trinidad and Tobago (Petrotrin)

The upgrade of rating on Petrotrin's notes to Ba3 from B1 was based
on the credit quality of its guarantor, Heritage, and on the strong
support from the government of Trinidad on the company's bond
exchange offering, which reduced Petrotrin's liquidity risk. On
April 15, Petrotrin announced an offer to exchange its existing
outstanding notes due 2019 and 2022 for Trinidad Holdings' (its
parent company, Ba3 stable) new notes and new term loan.

In August 2018, the government of Trinidad announced the closing of
Petrotrin's sole refinery, which raised its credit risk. More
recently, the government announced a reorganization of Petrotrin's
business into the holding company Trinidad Holdings and its four
subsidiaries.

Based in Pointe-a-Pierre, Trinidad, Petrotrin is a non-operating
energy company 100% indirectly owned by the government.



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

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