/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/190426.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 Friday, April 26, 2019, Vol. 20, No. 84 Headlines B E R M U D A TEEKAY CORP: Moody's Rates New Sr. Secured Notes Due 2024 'B2' C A Y M A N I S L A N D S AYTU BIOSCIENCE: Armistice Capital Has 41.1% Stake as of April 18 D O M I N I C A N R E P U B L I C PUNTA CATALINA PLANT: Contractor Claims More Than RD$8,700MM Loss PUNTA CATALINA PLANT: Supplies 210MW to National Grid E C U A D O R ECUADOR: To Strengthen Fiscal Sustainability With $500MM-IDB Loan G U A T E M A L A BANCO AGROMERCANTIL: Fitch Alters Outlook on BB+/BBB- IDRs to Neg. CEMENTOS PROGRESO: Fitch Alters Outlook on 'BB+' FC IDR to Negative P E R U RUTAS DE LIMA: S&P Affirms 'BB' Rating on Sr. Secured Notes P U E R T O R I C O LUBY'S INC: Posts $6.6MM Net Income for Qtr. Ended March 2019 T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Oil Revenue Under New Threat U R U G U A Y BANCO DE LA NACION: Fitch Affirms 'B' LongTerm IDRs, Outlook Neg. PROVINCIA CASA: Fitch Affirms 'B' LongTerm IDRs, Outlook Negative - - - - - ============= B E R M U D A ============= TEEKAY CORP: Moody's Rates New Sr. Secured Notes Due 2024 'B2' -------------------------------------------------------------- Moody's Investors Service assigned a B2 rating to Teekay Corporation's proposed senior secured notes due in 2024. Concurrently, Moody's affirmed Teekay's B3 Corporate Family Rating and SGL-3 Speculative Grade Liquidity rating, denoting adequate liquidity. The outlook is stable. Proceeds of the new senior secured notes along with about $155 million in cash are anticipated to partially refinance the senior unsecured bonds due in January 2020 (of which about $500 million remain outstanding) and cover transaction fees and expenses. The Caa1 rating on the senior unsecured 2020 bonds is unchanged at this time. RATINGS RATIONALE The affirmation of the B3 CFR considers Teekay's significant market position in its respective shipping segments, its financial profile and stabilizing to improving industry fundamentals. It also reflects Moody's expectation of an adequate liquidity profile that should cover the Parent's now reduced near term debt obligations and G&A expenses. The liquidity profile is supported by Parent-level pro forma cash balances of about $65 million and full availability under its equity margin revolver of approximately $143 million based on current market values. Additional support is provided by the improved cash flow generation of the Parent's remaining (owned) operating assets, which have benefited from bonus tariffs tied to higher production and oil prices. However, these cash flows are volatile and vulnerable to unplanned equipment and production challenges. With the underlying offshore and LNG markets exhibiting signs of improvement and continued deliveries of new builds on long term contracts that should start generating cash flow, Teekay should de-lever from the high front-loaded debt levels undertaken for the new build projects on a consolidated basis. The underlying conventional tanker markets are also showing signs of stabilization and should support an improvement in consolidated leverage. However, a meaningful recovery seems unlikely over the near term. Nevertheless, the Parent's standalone ability to cover its financial obligations remains limited by the substantial decline in its expected aggregate cash distributions from its master limited partnership entities. Potential distributions were lowered by the significant dilution of the Parent's ownership interests in Teekay Offshore Partners, L.P. ("TOO", rated B3 stable), following a strategic sale to Brookfield Business Partners L.P in September 2017. Positively, the cash distribution from Teekay LNG Partners L.P. will increase by 36% (to about $20 million) effective 2019 but still far below the approximately $100 million level in 2014 (and about $83 million in 2015). While such cash streams are not contractually mandated, they are a major support to the rating and are very unlikely to be restored to historical levels in the near to intermediate timeframe. Similarly, the near-term prospects for market values of the Parent's equity interests in the subsidiaries recovering to restore asset coverage of Parent debt are also unlikely. Moody's estimates Parent-level debt-to-EBITDA to remain elevated for some time given its operating profile, albeit improving towards the low 6x range from over 7x following the bond refinancing, noting also it provides subsidiary guarantees of approximately $166 million. The stable outlook anticipates that stabilizing to improving fundamentals in the underlying LNG and offshore markets and upcoming project deliveries will support an improvement in the family's cash flow generation and leverage profile. It also reflects expectations of adequate liquidity to cover Parent financial obligations over the next 12 months, including the ability to address the likely remaining balance of its unsecured 2020 bonds (about $75 million pro forma) well before maturity. The stable outlook assumes timely extension of contracts, amortization payments and refinancing of debt maturities across the Teekay family. The B2 rating on the proposed senior secured notes due in 2024, one notch above the CFR, reflects the senior position of this class of debt relative to the senior unsecured claims in the event of a default. The notes are expected to be secured primarily by the Parent's remaining operating assets, comprising three floating, production, storage and offloading (FPSO) units. The notes will have a first priority lien on the Banff and Hummingbird FPSO units, a negative pledge the Foinaven FPSO, all equity interests in the FPSO-holding companies and a share pledge of all of the common stock of Teekay Finance Limited, which owns a majority of Teekay's equity ownership interests in the publicly traded subsidiaries. Moody's took the following actions: Issuer: Teekay Corporation Assignments: Senior Secured Regular Bond/Debenture, assigned at B2 Affirmations: Corporate Family Rating, affirmed at B3 Speculative Grade Liquidity rating, affirmed at SGL-3 Outlook Actions: Outlook remains stable Upward ratings could develop with a substantial reduction in Teekay Parent debt, supported by successful execution of its asset disposal strategy, such that debt-to-EBITDA approaches 4x. This would be accompanied by a meaningful increase in MLP cash distributions that also enable Teekay Parent to comfortably cover its debt obligations and general and administrative expenses. The ratings could be downgraded with deteriorating liquidity or an inability to refinance approaching Parent or subsidiary debt maturities or to address their financial obligations on a timely basis. Additional reductions in the cash distributions received by Parent, an increase in its funded debt or declines in the market capitalizations of its subsidiaries that exert pressure on the market value of its limited or general partnership units could also drive downwards rating pressure. Repurchases of Parent's common shares or more aggressive financial policies could also result in ratings pressure. The principal methodology used in these ratings was Shipping Industry published in December 2017. Teekay Corporation, a Marshall Islands Corporation and headquartered in Bermuda with executive offices in Vancouver Canada, develops and operates projects in the marine midstream space. It does this through its general partnership interests in two master limited partnerships (MLPs), Teekay LNG Partners L.P. (NYSE: TGP, unrated ) and Teekay Offshore Partners L.P. (NYSE: TOO, rated B3 stable), its controlling ownership of Teekay Tankers Ltd. (NYSE: TNK, unrated) and its fleet of directly-owned offshore units. Teekay manages and operates over 200 vessels comprising liquefied gas, offshore, and conventional tanker assets, including vessels on order, and ownership interests in a number of joint ventures. Consolidated revenues were approximately $1.7 billion as of fiscal year ended December 31, 2018. Teekay Corporation is publicly traded and the founder's charitable organization, the Kattegat Trust, owns approximately 40% of the company through affiliates. =========================== C A Y M A N I S L A N D S =========================== AYTU BIOSCIENCE: Armistice Capital Has 41.1% Stake as of April 18 ----------------------------------------------------------------- Armistice Capital, LLC, Armistice Capital Master Fund Ltd., and Steven Boyd disclosed in a Schedule 13D/A filed with the Securities and Exchange Commission that as of April 18, 2019, they beneficially own 5,120,064 shares of common stock of Aytu Bioscience, Inc., representing 41.1 percent of the shares outstanding. Armistice Capital is an investment adviser registered with the SEC that is principally engaged in the business of providing investment management services to private investment vehicles, including the Master Fund. The principal business address of Armistice Capital is 510 Madison Avenue, 7th Floor, New York, New York 10022. The Master Fund is principally engaged in the business of investing in securities. The principal business address of the Master Fund is c/o dms Corporate Services Ltd., 20 Genesis Close, P.O. Box 314, Grand Cayman KY1-1104, Cayman Islands. The board of directors of the Master Fund consists of Steven Boyd, Kevin A. Phillip and Gregory S. Bennett. Steven Boyd is the managing member of Armistice Capital and a director of the Master Fund. Mr. Boyd's business address is 510 Madison Avenue, 7th Floor, New York, New York 10022. The funds for the purchase of the 5,120,064 Shares beneficially owned by the Reporting Persons came from the working capital of the Master Fund, which is the direct owner of the Shares. The net investment costs (including commissions, if any) of the Shares beneficially owned by the Reporting Persons is approximately $2,980,000. No borrowed funds were used to purchase the Shares, other than any borrowed funds used for working capital purposes (including certain leverage arrangements) in the ordinary course of business. A full-text copy of the regulatory filing is available for free at: https://is.gd/CFCjnq About Aytu BioScience Englewood, Colorado-based Aytu BioScience, Inc. (OTCMKTS:AYTU) -- http://www.aytubio.com/-- is a commercial-stage specialty pharmaceutical company focused on global commercialization of novel products addressing significant medical needs. The company currently markets Natesto, the only FDA-approved nasal formulation of testosterone for men with hypogonadism, ZolpiMist, an FDA-approved, commercial-stage prescription sleep aid indicated for the short-term treatment of insomnia characterized by difficulties with sleep initiation, and recently acquired Tuzistra XR, the only FDA-approved 12-hour codeine-based antitussive oral suspension. Additionally, Aytu is developing MiOXSYS, a novel, rapid semen analysis system with the potential to become a standard of care for the diagnosis and management of male infertility caused by oxidative stress. MiOXSYS is commercialized outside of the U.S. where it is a CE Marked, Health Canada cleared, Australian TGA approved, Mexican COFEPRAS approved product, and Aytu is planning U.S.-based clinical trials in pursuit of 510k de novo medical device clearance by the FDA. Aytu's strategy is to continue building its portfolio of revenue-generating products, leveraging its focused commercial team and expertise to build leading brands within large, growing markets. Aytu Bioscience reported a net loss of $10.18 million for the year ended June 30, 2018, compared to a net loss of $22.50 million for the year ended June 30, 2017. As of Dec. 31, 2018, Aytu Bioscience had $42.39 million in total assets, $22.50 million in total liabilities, and $19.89 million in total stockholders' equity. EKS&H LLLP, in Denver, Colorado, the Company's auditor since 2015, issued a "going concern" qualification in its report on the consolidated financial statements for the year ended June 30, 2018, citing that the Company has suffered recurring losses from operations and has an accumulated deficit that raise substantial doubt about its ability to continue as a going concern. =================================== D O M I N I C A N R E P U B L I C =================================== PUNTA CATALINA PLANT: Contractor Claims More Than RD$8,700MM Loss ----------------------------------------------------------------- Listin Diaro reports that the Odebrecht-Tecnimont-Estrella consortium, which is responsible for the construction of the Punta Catalina Thermoelectric Power Plant, alleged losses at the close of fiscal year 2018 higher than the RD$8,700 million, in order not to pay the bonus to its employees, explained the delegate of the Union of Workers of the Construction Branch of the Punta Catalina Plant (Sintrapunca), Hector Puello. He said that as a union, they should investigate the sworn statement made by the consortium to verify the veracity of it, according to Listin Diaro. The president of the National Confederation of Trade Union Unity (CNUS), Rafael-Pepe-Abreu, assured that so far no agreement has been signed between the union and the consortium, so they will set up another meeting at the Ministry of Labor to try to reach an agreement between both parties, the report notes. The report relays that he said that his interest is that the situation be normalized and that workers receive the benefit they have to receive. He indicated that the employers maintain the position that they did not obtain profits, but that they are looking for ways to reach an agreement, the report discloses. Regarding the cancellations, Pepe Abreu said that since this is a temporary project, there are cancellations scheduled as work progresses, however, he did not rule out the possibility that the recent cancellations are due to the demonstrations made by the employees of the plant, the report says. About Punta Catalina Plant The Punta Catalina Thermoelectric Power Plant is a 770-megawatt coal-fired power plant in Punta Catalina-Hatillo, Dominican Republic. The construction of the plant is under the charge of the Odebrecht-Tecnimont-Estrella consortium (a contractor group composed of Italian company Maire Tecnimont SpA, Brazilian contractor Construtora Norberto Odebrecht S.A, and Chile-based Ingenieria Estrella SRL). Groundbreaking for the project, estimated to cost US$2 billion, was held in late 2013. Unit 1 of the Power Plant became operational on Feb. 27, 2019, with an initial 36.5 megawatts to the national grid (SENI). The Project has had its shares of financing delays and funding scandal. In February 2017, a U.S. court discovered that main contractor Odebrecht had paid $92 million in bribes to Dominican officials between 2001 and 2014, as a means of securing a number of contracts, including the contract to build the Punta Catalina plant. The project's staff have pleaded with politicians to stand behind continued construction work on the plant, despite the corruption allegations. Some environmental groups also opposed the plant construction, citing harmful impact on the Caribbean coasts and climate in general. The plant's parent company and sponsor is the Dominican Republic's state electric utility, Corporacion Dominicana de Empresas ElÇctricas Estatales (CDEEE). PUNTA CATALINA PLANT: Supplies 210MW to National Grid ----------------------------------------------------- Dominican Today reports that despite the conflicts pitting workers and the builders, the Punta Catalina Power Plant continues its technical testing, contributing an average of 210 megawatts to the national electric grid. The plant remained available over the weekend but didn't supply electricity, according to Dominican Today. The coal-fired plant generates 220 MW since last April 21. The workers demands that the builders headed by Odebrecht pay a bonus and although an agreement was announced, the unionists denounce threats of layoffs and the facility continues militarized, the report adds. About Punta Catalina Plant The Punta Catalina Thermoelectric Power Plant is a 770-megawatt coal-fired power plant in Punta Catalina-Hatillo, Dominican Republic. The construction of the plant is under the charge of the Odebrecht-Tecnimont-Estrella consortium (a contractor group composed of Italian company Maire Tecnimont SpA, Brazilian contractor Construtora Norberto Odebrecht S.A, and Chile-based Ingenieria Estrella SRL). Groundbreaking for the project, estimated to cost US$2 billion, was held in late 2013. Unit 1 of the Power Plant became operational on Feb. 27, 2019, with an initial 36.5 megawatts to the national grid (SENI). The Project has had its shares of financing delays and funding scandal. In February 2017, a U.S. court discovered that main contractor Odebrecht had paid $92 million in bribes to Dominican officials between 2001 and 2014, as a means of securing a number of contracts, including the contract to build the Punta Catalina plant. The project's staff have pleaded with politicians to stand behind continued construction work on the plant, despite the corruption allegations. Some environmental groups also opposed the plant construction, citing harmful impact on the Caribbean coasts and climate in general. The plant's parent company and sponsor is the Dominican Republic's state electric utility, Corporacion Dominicana de Empresas ElÇctricas Estatales (CDEEE). ============= E C U A D O R ============= ECUADOR: To Strengthen Fiscal Sustainability With $500MM-IDB Loan ----------------------------------------------------------------- Ecuador will strengthen its fiscal sustainability with $500 million in financing approved by the Inter-American Development Bank (IDB). The resources will be used to support the country in implementing its reform program, which is aimed at reestablishing macroeconomic stability; restoring fiscal sustainability; strengthening the institutional framework of the Central Bank; and safeguarding social expenditure in support of vulnerable populations. This loan is extended through Special Development Financing (SDL), an emergency program. It will play an essential role in ensuring the success of the fiscal consolidation process and the launch of a structural reform agenda, which enables the private sector to take over from the public sector as the main driver of Ecuador's economic growth, as the government intends. The framework for structural reforms includes optimization of the fuel-subsidy system for the benefit of the poor and vulnerable; adjustment of the State's salary account; and optimization of external-debt management through greater transparency. These reforms are intended to generate a reduction in spending levels and public debt and an increase in international reserves. As part of the program, the government has committed to establishing a floor of 1% of GDP in social-assistance spending for the period 2020-2021, in addition to increasing spending on social assistance by $370 million in 2019. The IDB $500-million financing has a repayment term of 7 years with 3 years of grace and an interest rate based on LIBOR. About Inter-American Development Bank The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region. ================= G U A T E M A L A ================= BANCO AGROMERCANTIL: Fitch Alters Outlook on BB+/BBB- IDRs to Neg. ------------------------------------------------------------------ Fitch Ratings has affirmed all Foreign and Local Currency Issuer Default Ratings and revised the Outlooks on the Long-Term IDRs to Negative from Stable of the following Guatemalan banks: Banco Agromercantil de Guatemala S.A. (BAM) Banco Industrial S.A. (Industrial) Banco de Desarrollo Rural, S.A. (Banrural) Banco G&T Continental S.A. (G&TC) Fitch has also affirmed the National Ratings of two Panamanian-related companies and revised the Outlook on the Long-Term National Ratings to Negative from Stable. BI Bank, S.A. (BI Bank) GTC Bank, Inc. (GTC) Fitch has also affirmed the Viability Ratings, Support Ratings and Support Rating Floors, where assigned. The National Ratings of the four Guatemalan banks and their subsidiaries in Guatemala were unaffected. KEY RATING DRIVERS IDRS AND VRS BAM BAM's IDRs are rated above the sovereign to reflect potential support from its shareholder Bancolombia, S.A. (BBB/Stable) if required. The bank's IDR is rated at the country ceiling of 'BB+', which captures transfer and convertibility risks, and the LC IDRs are given the maximum uplift of two notches above the sovereign rating, which in Fitch's opinion reflects the sound owner's commitment to its subsidiary. Fitch considers that the Bancolombia's ability and propensity to provide assistance to BAM reflects that any required support would be manageable. Also, the huge reputational risk that BAM's default could constitute to its parent, which could damage its franchise. BAM's VR is highly influenced by a challenging operating environment and the company profile, which is supported by its recognized franchise in Guatemala, being the fourth largest bank in term of assets. Industrial, Banrural and G&TC Industrial, Banrural and G&TC's IDRs, which are driven by their VRs, are rated at the sovereign level. The country's mild economic prospects and heightened political tensions could influence the business environment and the local banks' performance, and limits the banks' international ratings, as reflected in the Negative Outlook. The three banks' VRs are highly influenced by the operating environment and their strong local franchises. SUPPORT RATING AND SUPPORT RATING FLOOR BAM's SR of '3' reflects the Bancolombia's ability and propensity to provide assistance to BAM, in case of needing it. Industrial, G&TC and Banrural's SRs of '3' reflect Fitch's opinion about the moderate probability of extraordinary support that the bank will receive from the sovereign if needed. Fitch's assessment of support is based on the sovereign ability to provide support, as reflected in its rating and the small relative size of the banking system. The SRs also reflect the banks' deposit-based funding structure and systemic importance in Guatemala. Industrial, G&TC and Banrural's SRFs are one notch below the sovereign rating of Guatemala and according to Fitch's criteria, indicate the minimum level to which the entity's Long-Term IDR could fall as long as Fitch's assessment of the support factors does not change. SUBSIDIARIES AND AFFILIATED COMPANIES BIBank BIBank's National Ratings in Panama reflect the potential support from its sister company, Industrial through their holding company Bicapital Corporation. Its support assessment considers that a default would constitute high reputational risk to its parent and to Industrial. The Negative Outlook on the National Long-Term Rating indicates that the ratings would be downgraded should Industrial's IDR be downgraded. GTC GTC Bank Inc.'s, Panamanian National Scale Ratings' reflect the potential support from its parent G&TC. Fitch's assessment of support considers its relevant role within the group's strategy and that a default would constitute a very high reputational risk to its parent. The Negative Outlook reflects that the ratings would be downgraded should G&TC's IDRs be downgraded. RATING SENSITIVITIES IDRS and VRS The Negative Outlooks on the Local and Foreign Currency IDRs of Industrial, BAM, Banrural and G&TC are aligned with the sovereign. A downgrade of Guatemala's sovereign ratings and Country Ceiling would trigger similar rating actions on these banks' IDRs and VRs. SUPPORT RATING AND SUPPORT RATING FLOORS BAM's SR is sensitive to modifications in Guatemala's sovereign rating, or in the assessment of the Bancolombia' propensity or ability to provide support to its subsidiary. A moderate downgrade in the sovereign rating would not affect Industrial, GT&C and Banrural's SRs and SRFs; however, they are sensitive to changes in Fitch's view of the sovereign's propensity to support the bank. SUBSIDIARIES AND AFFILIATED COMPANIES Changes in the National Scale Ratings of BIBank are contingent on changes in Industrial's capacity, as reflected by its Foreign Currency IDR, and propensity to provide support. Changes in GTC's Panamanian scale ratings will mirror changes in its parent's ability and propensity to provide timely support when required. Fitch has affirmed the following ratings and revised Outlooks as indicated: Banco Agromercantil de Guatemala, S.A. -- Foreign Currency Long-Term IDR at 'BB+', Rating Outlook revised to Negative from Stable; -- Foreign Currency Short-Term IDR at 'B'; -- Local Currency Long-Term IDR at 'BBB-', Rating Outlook revised to Negative from Stable; -- Local Currency Short-Term IDR at 'F3'; -- Viability at 'bb'; -- Support at '3'. Banco Industrial S.A. -- Foreign Currency Long-Term IDR at 'BB', Rating Outlook revised to Negative from Stable; -- Foreign Currency Short-Term IDR at 'B'; -- Local Currency Long-Term IDR at 'BB'; Rating Outlook revised to Negative from Stable; -- Local Currency Short-Term IDR at 'B'; -- Viability at 'bb'; -- Support at '3'; -- Support Floor at 'BB-'. Banco de Desarrollo Rural, S.A. -- Foreign Currency Long-Term IDR at 'BB'; Rating Outlook revised to Negative from Stable; -- Foreign Currency Short-Term IDR at 'B'; -- Local Currency Long-Term IDR at 'BB'; Rating Outlook revised to Negative from Stable; -- Local Currency Short-Term IDR at 'B'; -- Viability at 'bb'; -- Support at '3'; -- Support Floor at 'BB-'. Banco G&T Continental S.A. -- Foreign Currency Long-Term IDR at 'BB'; Rating Outlook revised to Negative from Stable; -- Foreign Currency Short-Term IDR at 'B'; -- Local Currency Long-Term IDR at 'BB'; Rating Outlook revised to Negative from Stable; -- Local Currency Short-Term IDR at 'B'; -- Viability at 'bb'; -- Support at '3'; -- Support Floor at 'BB-'. GTC Bank, Inc. -- National Long-Term ratings at 'A+(pan)'; Rating Outlook revised to Negative from Stable; -- National Short-Term ratings at 'F1(pan)'. BI Bank, S.A. -- National Long-Term ratings at 'A(pan)'; Rating Outlook revised to Negative from Stable; -- National Short-Term ratings at 'F1(pan)'. CEMENTOS PROGRESO: Fitch Alters Outlook on 'BB+' FC IDR to Negative ------------------------------------------------------------------- Fitch Ratings has affirmed the ratings and/or revised the Outlooks of the following corporates as a result of Fitch's recent revision of Guatemala's Rating Outlook to Negative from Stable. -- Cementos Progreso, S.A. (Cempro); -- Comcel Trust (Comcel); -- Energuate Trust (Energuate). KEY RATING DRIVERS The revision of Guatemala's Outlook to Negative reflects heightened political tension and uncertainty, and steady erosion in the government's already low tax collection. Presidential and congressional elections scheduled for this year may result in a government with a weak mandate, and are likely to lead to a fractured congress, resulting in continued political gridlock and diminishing reform prospects. The failure to enact reforms at the tax administration as well as pass new tax measures would lead to further erosion of revenues. Guatemala's ratings are supported by a track record of macroeconomic stability and conservative policies, low public debt to GDP and sound external liquidity. These strengths are counterbalanced by a narrow tax base that constrains policy flexibility and limits debt tolerance, as well as weak governance, investment levels and human development indicators. KEY ASSUMPTIONS Key Assumptions Related to Guatemala: -- Fitch forecasts that Guatemala's economy and balance of payments will continue to benefit from strong remittance inflows from the U.S.; -- The global economy performs largely in line with Fitch's Global Economic Outlook (March 2019). RATING SENSITIVITIES The foreign-currency (FC) ratings of these companies could be negatively affected by a downgrade of the sovereign rating of Guatemala and/or of its country ceiling. Factors that could lead to a downgrade of Guatemala include: -- A slowdown in growth, which may be due to a disruption of remittances, social unrest and/or governability challenges; -- Continued erosion of the revenue base that undermines fiscal flexibility; -- Political gridlock that constrains government financing flexibility and effective policy making. Conversely, factors that could lead to a stabilization of Guatemala's Outlook and therefore the FC ratings of these companies include: -- Improvements in tax collection that enhance fiscal policy flexibility; -- Higher investment and growth prospects; -- Improvements in governance and human development indicators relative to peers. FULL LIST OF RATING ACTIONS Fitch has affirmed the following ratings and revised Outlooks where indicated: Cementos Progreso, S.A.: -- Long-Term FC Issuer Default Rating at 'BB+'; Outlook revised to Negative from Stable; -- Long-term Local-Currency IDR at 'BB+'; Outlook revised to Stable from Positive; -- USD350 million senior unsecured notes at 'BB+'. Cempro's LC Outlook Revision to Stable from Positive reflects the company's domestic operational focus and its exposure to a potential deterioration of Guatemala's operating environment. Comcel Trust -- Long-Term FC IDR at 'BB+'; Outlook revised to Negative from Stable. -- Long-Term LC IDR at 'BB+'; Outlook Stable; -- USD800 million senior unsecured notes at 'BB+'. Energuate Trust -- Long-Term FC IDR at 'BB'; Outlook Stable. -- Long-Term LC IDR at 'BB'; Outlook Stable. -- Senior unsecured notes rating at 'BB'. The affirmation of Energuate's ratings reflects the company's consistent operating performance, continued deleveraging trajectory as well as the strategic nature and importance of the electricity sector for the Guatemalan government. ======= P E R U ======= RUTAS DE LIMA: S&P Affirms 'BB' Rating on Sr. Secured Notes ----------------------------------------------------------- On April 24, 2019, S&P Global Ratings affirmed its 'BB' rating on Rutas de Lima S.A.C.'s senior secured notes. S&P believes that although the tariff increase that Rutas de Lima is entitled to was delayed and traffic growth levels were marginally lower than expected, the Panamericana Norte and Sur toll roads will maintain adequate financial and operating performances until the notes are due. The municipality of Lima remains behind schedule for expropriating the lands required for the construction of the greenfield toll road "Ramiro Priale." Thus, S&P continues to exclude the associated construction works from our analysis. The stable outlook reflects S&P's expectation that the Panamericana Norte and Panamericana Sur roads will deliver stable operational and financial performance over the next two years, supported by traffic growth of between 3.0% and 3.5%, and will generated projected annual DSCRs at or above 1.07x, consistently. ===================== P U E R T O R I C O ===================== LUBY'S INC: Posts $6.6MM Net Income for Qtr. Ended March 2019 ------------------------------------------------------------- Luby's, Inc., has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting net income of $6.63 million on $74.42 million of total sales for the quarter ended March 13, 2019, compared to a net loss of $11.57 million on $81.79 million of total sales for the quarter ended March 14, 2018. For the two quarters ended March 13, 2019, the Company reported a net loss of $856,000 on $177.34 million of total sales, compared to a net loss of $17.10 million on $195.29 million of total sales for the two quarters ended March 14, 2018. As of March 13, 2019, the Company had $197.58 million in total assets, $82.49 million in total liabilities, and $115.08 million in total shareholders' equity. Cash used in operating activities was approximately $7.6 million in the two quarters ended March 13, 2019, an approximate $5.5 million increase from the two quarters ended March 14, 2018. The approximate $5.5 million increase in cash used in operating activities is due to an approximate $5.0 million increase in cash used for working capital purposes and an approximate $0.5 million increase in net loss after adjusting for non-cash items. The Company generally reinvests available cash flows from operations to maintain and enhance existing restaurants and support Culinary Contract Services. Cash provided by investing activities was approximately $18.7 million in the two quarters ended March 13, 2019 and an approximate $4.5 million use of cash in the two quarters ended March 14, 2018. Capital expenditures were approximately $1.8 million in the two quarters ended March 13, 2019 and approximately $8.0 million in the two quarters ended March 14, 2018. Proceeds from the disposal of assets were approximately $20.4 million in the two quarters ended March 13, 2019 and approximately $2.8 million in the two quarters ended March 14, 2018. Insurance proceeds received as a result of claims made from property damage caused by Hurricane Harvey were approximately $08 million in the two quarters ended March 14, 2018. Cash used in financing activities was $17,000 in the two quarters ended March 13, 2019 compared to an approximate $7.1 million source of cash during the two quarters ended March 14, 2018. Cash flows from financing activities was primarily the result of the Company's 2018 Credit Agreement. During the two quarters ended March 13, 2019, net cash provided by the Company's 2018 Term Loan was $58.4 million, cash used in Revolver borrowings was approximately $20.0 million, cash used for Term Loan re-payments was approximately $35.2 million, cash used for debt issuance costs was approximately $3.2 million, and cash used for equity shares withheld to cover taxes was $12,000. During the two quarters ended March 14, 2018, cash provided by borrowings on the Company's Revolver were approximately $8.6 million, cash used for Term Loan re-payments was approximately $1.4 million, and cash used for equity shares withheld to cover taxes was $70,000. Chris Pappas, president and CEO, commented, "We continue to make positive progress through our turn-around efforts to reduce costs while repositioning our brands for improved sales and increased store-level profit efficiencies to drive better financial results in 2019 and beyond. Since the beginning of the second quarter last year, we have closed 27 underperforming units and through our $45.0 million asset sales program that began last year, we have generated proceeds of $34.7 million. "Cost management remains a primary focus throughout our organization and even after adjusting for the number of closed stores, our cost run-rate came down in the second quarter. Store-level profit as a percentage of restaurant sales improved in the second quarter to 10.7% compared to 7.7% in the same quarter last year due primarily to effective cost controls to reduce food and supply expenses, efficient hourly labor scheduling, and reductions in repairs and maintenance expense. "While our same-store sale results for the quarter are below our expectations for the full year, they improved sequentially at both our Luby's Cafeteria and Fuddruckers brands. Our chief operating officer, Todd Coutee, continues to realign our organization by putting the right people in the right positions. Todd and the team are also hard at work at several initiatives to enhance sales at each brand with new everyday value choices, focus on convenience and the dinner meal part, and re-introducing a breakfast service option at several Luby's locations. "Lastly, as we transition to primarily a franchise model for Fuddruckers, we converted five company-operated Fuddruckers restaurants to franchise-operated restaurants. These restaurants are in the San Antonio market and were transferred in early April to a new franchise operator with prior Fuddruckers experience. We continue to work on additional re-franchising opportunities in markets outside of our home market in Houston, Texas." Second Quarter Restaurant Sales: * Luby's Cafeterias sales decreased $2.9 million versus the second quarter fiscal 2018, due to the closure of seven locations over the prior year and a 2.2% decrease in Luby's same-store sales. The decrease in same-store sales was the result of a 4.0% decrease in guest traffic, partially offset by a 1.9% increase in average spend per guest. * Fuddruckers sales at company-owned restaurants decreased $3.8 million versus the second quarter fiscal 2018, due to 14 restaurant closings and a 5.3% decrease in same-store sales. The decrease in same-store sales was the result of a 9.3% decrease in guest traffic, partially offset by a 4.4% increase in average spend per guest. * Combo location sales decreased $0.3 million, or 7.0%, versus second quarter fiscal 2018. * Cheeseburger in Paradise sales decreased $1.9 million. The decrease in sales is related to reducing operations to a single store compared to operating seven locations in the second quarter fiscal 2018. * Income from continuing operations was $6.6 million, or $0.22 per diluted share, compared to a loss of $11.5 million, or $0.38 per diluted share, in the second quarter fiscal 2018. * Store level profit, defined as restaurant sales plus vending revenue less cost of food, payroll and related costs, other operating expenses, and occupancy costs, was $7.0 million, or 10.7% of restaurant sales, in the second quarter compared to $5.7 million, or 7.7% of restaurant sales, in the second quarter fiscal 2018. The improvement in store level profit, despite a decline in same-store sales, was the result of effective cost management in several areas. Food costs as percent of restaurant sales decreased as we focused on on a return to "classic favorites" with favorable food costs as well as an overall higher average spend per guest. The Company's restaurant supplies expense and repairs and maintenance expense each experienced significant reductions over prior year as these expenses continued to be opportunities of focus. The Company also managed to reduce its hourly labor costs on a per store basis through efficient restaurant staffing. Store level profit is a non-GAAP measure, and reconciliation to loss from continuing operations is presented after the financial statements. * Culinary Contract Services revenues increased by $1.7 million to $7.5 million with 33 operating locations during the second quarter. New locations contributed approximately $1.4 million in revenue and locations continually operated over the prior full year increased revenue approximately $0.3 million. Culinary Contract Services profit margin increased to 11.0% of Culinary Contract Services sales in the second quarter compared to 3.6% in the second quarter fiscal 2018. * Selling, general and administrative expenses decreased $0.2 million. Removing one-time proxy-solicitation and communication costs of approximately $1.0 million, selling, general and administrative expenses decreased $1.2 million. The decrease reflects reductions in corporate staff and related costs as well as reductions in other overhead expenses, including general liability claims expense, corporate travel, and corporate supplies expense. Included in selling, general, and administrative expenses was approximately $0.8 million in marketing and advertising expense which represents 1.0% of total sales. Balance Sheet and Capital Expenditures The Company ended the second quarter with net debt (total debt less cash) of $29.6 million, a decrease from $35.8 million at the end of fiscal 2018. During the second quarter, its capital expenditures decreased to $0.7 million compared to $3.7 million in the second quarter fiscal 2018. At the end of the second quarter, the Company had $3.9 million in available cash, $10.8 million in restricted cash, and $115.1 million in total shareholders' equity. A full-text copy of the Form 10-Q is available for free at: https://is.gd/lRhLmq About Luby's Houston, Texas- based Luby's, Inc. (NYSE: LUB) -- http://www.lubysinc.com/-- operates 136 restaurants nationally as of March 13, 2019: 81 Luby's Cafeterias, 54 Fuddruckers, one Cheeseburger in Paradise restaurants. Luby's is the franchisor for 102 Fuddruckers franchise locations across the United States (including Puerto Rico), Canada, Mexico, Colombia, and Panama. Luby's Culinary Contract Services provides food service management to 33 sites consisting of healthcare, corporate dining locations, sports stadiums, and sales through retail grocery stores. Luby's reported a net loss of $33.56 million for the year ended Aug. 29, 2018, compared to a net loss of $23.26 million for the year ended Aug. 30, 2017. As of Dec. 19, 2018, Luby's had $208.89 million in total assets, $100.83 million in total liabilities, and $108.05 million in total shareholders' equity. Grant Thornton LLP, in Houston, Texas, issued a "going concern" qualification in its report on the consolidated financial statements for the year ended Aug. 29, 2018, noting that the Company sustained a net loss of approximately $33.6 million and net cash used in operating activities of approximately $8.5 million. The Company's term and revolving debt of approximately $39.5 million is due May 1, 2019. The Company was in default of certain debt covenants of its term and revolving credit agreements maturing on May 1, 2019. On Aug. 24, 2018, the lenders agreed to waive the existing events of default resulting from any breach of certain financial covenants or the limitation on maintenance capital expenditures, in each case that may have occurred during the period from and including May 9, 2018 until Aug. 24, 2018, and any related events of default. Additionally, the lenders agreed to waive the requirements that the Company comply with certain financial covenants until Dec. 31, 2018, at which time the Company will be in default without an additional waiver or alternative financing. These conditions, along with other matters, raise substantial doubt about the Company's ability to continue as a going concern. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Oil Revenue Under New Threat ----------------------------------------------- Aleem Khan at Trinidad Express reports that as Trinidad and Tobago government, unlike its Caribbean counterparts, continues to fail to get T&T removed from a European Union (EU) blacklist even once, T&T could be about to lose close to millions of dollars in oil revenue this year, a French tax attorney confirmed over the Easter weekend. France is getting ready to charge a 75 per cent withholding tax on payments made by French companies to blacklisted countries. In T&T's case, that would be oil and gas producer Perenco's payments to T&T, according to Trinidad Express. ============= U R U G U A Y ============= BANCO DE LA NACION: Fitch Affirms 'B' LongTerm IDRs, Outlook Neg. ----------------------------------------------------------------- Fitch Ratings has affirmed Banco de la Nacion Argentina's Long-Term Foreign Currency and Local Currency Issuer Default Ratings at 'B'. The Rating Outlook is Negative. KEY RATING DRIVERS IDRs BNAUY's IDRs are aligned with Argentina's sovereign ratings (B/Negative Outlook) as it is a full branch of Banco de la Nacion Argentina (BNA), which is fully owned by the Argentine state. In addition, BNA's liabilities (including its branches abroad) are guaranteed by the sovereign. BNA has a leading franchise and systemic importance in Argentina as the largest bank in terms of loans and deposits. In Fitch's view, regardless of BNA's overall adequate financial condition, its creditworthiness is heavily affected by Argentina's low sovereign rating, given the influence of the operating environment on the FIs performance. BNAUY is the smallest bank in Uruguay due to its narrow business focus. It is fully integrated with the head office's structure, strategies, corporate governance practices and risk management procedures. BNAUY operates through one main office. BNAUY has volatile profitability, a fairly liquid balance sheet and adequate capitalization metrics. RATING SENSITIVITIES IDRs BNAUY's ratings are sensitive to changes in Argentina's sovereign rating and/or willingness or ability to provide support to BNA and its branches. Fitch has affirmed the following ratings: BNAUY -- Long-term Foreign Currency IDR at 'B'; Negative Outlook; -- Long-term Local Currency IDR at 'B'; Negative Outlook. PROVINCIA CASA: Fitch Affirms 'B' LongTerm IDRs, Outlook Negative ----------------------------------------------------------------- Fitch Ratings has affirmed Provincia Casa Financiera's Long-Term Foreign and Local Currency Issuer Default Ratings at 'B'. The Rating Outlook is Negative. KEY RATING DRIVERS IDRs Provincia is a branch of Banco de la Provincia de Buenos Aires and part of the same legal entity. Therefore, Provincia's IDRs reflect Fitch's opinion of BAPRO's credit profile, which is highly influenced by its leading franchise and its systemic importance in Argentina and to the Province of Buenos Aires, as the second largest bank in terms of deposits and the third by loans with market shares of 9.9% and 8.7%, respectively, as of January 2019. Fitch also considers the bank's improving financial performance and ample liquidity, as well as its low capital base, above industry delinquency and high exposure to the public sector. In addition, BAPRO and Provincia are wholly owned by the government of the Province of Buenos Aires. BAPRO's liabilities (including those of its branches abroad like Provincia) are fully guaranteed by the government of the Province of Buenos Aires. In Uruguay, Provincia is small due to its narrow business focus. Its legal status is a casa financiera, which differs from a banking license because it is not allowed to raise residents' deposits and has much lower regulatory costs. However, in terms of regulatory capital limits, Provincia has to comply with the rules applied to banks. Provincia is in the process of changing its legal status to an Institucion Financiera Externa, which is only allowed to do businesses with non-residents. Being part of the same legal entity, Provincia is fully integrated with its head office's structure, strategies, corporate governance practices and risk management procedures. It operates through one office and reports to the Finance Division of BAPRO. Provincia has an improving profitability, low credit risk, a highly liquid balance sheet and adequate capitalization metrics. RATING SENSITIVITIES IDRS Provincia's IDRs are sensitive to changes in BAPRO's credit profile. Provincia's Negative Outlook on the IDRs reflects the potential impact in BAPRO's financial and business profile of a downgrade in Argentina's sovereign ratings, which currently have a Negative Outlook. Fitch has affirmed the following ratings: Provincia Casa Financiera: -- Long-Term Foreign Currency IDR at 'B'; Outlook Negative; -- Long-Term Local Currency IDR at 'B'; Outlook Negative. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2019. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *