/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/190506.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, May 6, 2019, Vol. 20, No. 90 Headlines A N T I G U A A N D B A R B U D A LIAT: St. Kitts & Nevis to Provide EC$1-Mil. in Emergency Funding B R A Z I L BANCO ABC: Fitch Affirms 'BB' Long-Term Foreign Currency IDRs MARFRIG GLOBAL: Fitch Retains BB- IDR Amid NBM US' Notes Issue D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Lack of Local Qualified Professionals Cited DOMINICAN REPUBLIC: Must 'Bury' US$3.9BB Cost of Red Tape, Paz Says DOMINICAN REPUBLIC: Santiago Province Seeks Higher Gov't Investment P A R A G U A Y BIOCEANICO SOVEREIGN: Moody's Rates $732MM Secured Notes 'Ba1' BIOCEANICO SOVEREIGN: S&P Gives (P)BB Rating on $732MM Sec. Notes P E R U NAUTILUS INKIA: S&P Affirms 'BB' ICR on Reorganization Completion P U E R T O R I C O ASOCIACION DE PROPIETARIOS: Seeks to Hire Accountant ASOCIACION DE PROPIETARIOS: Seeks to Hire Justiniano's as Counsel FIRST BANCORP: Fitch Hikes Long-Term IDR to 'B+', Outlook Stable JJE INC: Seeks to Hire Gratacos Law Firm as Legal Counsel KONA GRILL: Case Summary & 30 Largest Unsecured Creditors POPULAR INC: Fitch Hikes Long-Term IDR to 'BB', Outlook Stable SKYTEC INC: May 17 Approval Hearing on Disclosure Statement Set X X X X X X X X [*] BOND PRICING: For the Week April 29 to May 3, 2019 - - - - - ===================================== A N T I G U A A N D B A R B U D A ===================================== LIAT: St. Kitts & Nevis to Provide EC$1-Mil. in Emergency Funding ----------------------------------------------------------------- Caribbean360.com reports that the St Kitts and Nevis Government has agreed to provide emergency funding support of over EC$1 million (US$370,031) to the cash-strapped regional airline LIAT, even as shareholder governments are reported to be considering a proposal for financing the carrier. The Government said in a statement that the decision to help the Antigua-based airline followed a presentation to the Cabinet by a three-member LIAT delegation on March 11, according to Caribbean360.com. An advisory committee had been established to review the delegation's proposals and make recommendations on the way forward, according to Caribbean360.com. The LIAT high-level representatives -- including LIAT's General Counsel and Corporate Secretary, Diane Shurland along with LIAT's Chief Financial Officer, Rojer Inglis and Chief Commercial Officer, Audra Walker -- had also proposed for the Government to enter into a Minimum Revenue Guarantee (MRG) arrangement with the airline, the report relays. "The Government of St. Kitts and Nevis agrees in principle with the idea of participating in an MRG arrangement on the basis of further discussions and negotiations with high-level representatives of LIAT," the statement said, the report notes. The report relays that the announcement came on the same day LIAT shareholders met in Antigua to discuss the future of the airline, amid concerns that it would be near closure without financial assistance from regional governments. Host Prime Minister Gaston Browne put forward a proposal at that meeting. He is expected to have the proposal, which he made orally, in writing for the stakeholders to consider, the report notes. About LIAT LIAT Ltd., formerly known as Leeward Islands Air Transport or LIAT, is an airline headquartered on the grounds of V. C. Bird International Airport in Antigua. It operates high-frequency inter-island scheduled services serving 15 destinations in the Caribbean. The airline's main base is VC Bird International Airport, Antigua and Barbuda, with bases at Grantley Adams International Airport, Barbados and Piarco International Airport, Trinidad and Tobago. The airline is owned by seven Caribbean governments, with three being the major shareholders: Barbados, Antigua & Barbuda and St. Vincent and the Grenadines along with Dominica(94.7 %); other Caribbean governments, private shareholders and employees (5.3%). In the last few years, LIAT has been challenged with financial difficulties, often needing additional funding as the airline dealt with the high cost of operations. In November 2016, the Barbados government defended LIAT's operations, even as opposition legislators called for a cessation of the business. In early 2015, LIAT offered early retirement packages to employees in efforts to downsize. In 2014, LIAT knew it had to deal with unprofitable routes to make operations viable. In the third quarter of 2013, the airline's top management was shaken, with news Chief Executive Officer Captain Ian Brunton's sudden resignation. LIAT's current chief executive officer is Julie Reifer-Jones and chief financial officer is Rojer Inglis. Dr. Ralph Gonsalves, prime minister of St. Vincent & the Grenadines, serves as chairman of LIAT shareholders. =========== B R A Z I L =========== BANCO ABC: Fitch Affirms 'BB' Long-Term Foreign Currency IDRs ------------------------------------------------------------- Fitch Ratings has affirmed Banco ABC Brasil S.A.'s ratings including its Long-Term Foreign Currency Issuer Default Ratings at 'BB', LT Local Currency IDR at 'BB+' and LT National Rating at 'AAA(bra)'; Outlook Stable. KEY RATING DRIVERS IDRS, NATIONAL RATINGS AND SUPPORT RATING ABCBr's IDRs and Nacional Ratings are driven by the expected institutional support that Fitch believes ABCBr would receive from its parent, Arab Banking Corporation B.S.C. (ABC, Long-Term IDR 'BBB-'/Stable). The Stable Outlook on the IDRs is in line with that of the bank's parent, and also mirrors the Outlook on the sovereign ratings. ABCBr's LT Foreign Currency IDR is constrained by Brazil's Country Ceiling of 'BB', while its LT Local Currency IDR is two notches above Brazil's long-term rating (LT Foreign Currency and Local Currency IDRs BB-/Stable), which is the usual maximum uplift Fitch applies to Brazilian financial institutions owned by strong foreign shareholders. The bank's Support Rating of '3' reflects the expected support from ABC, which is based in Bahrain. Given the subsidiary's relevant contribution to the parent's revenues and the brand, Fitch believes that, in the unlikely event it is needed, the Brazilian subsidiary would likely receive support from its majority shareholder. VR ABCBr's VR of 'bb- continues to be driven by the bank's credit metrics that reflect a low risk profile, stable profitability, comfortable capitalization and liquidity and sound risk management. Although lower than previous years, the bank's profitability during 2018 remained satisfactory and was driven by more diverse sources of revenue which served to offset lower NIMs. The bank's credit metrics continued to be aided by ABCBr's relatively low funding costs, its strategic focus and the better asset quality metrics when compared to some of its other competitors. The bank's credit portfolio tenors continue to be conservatively matched to the tenors of its funding, providing comfortable levels of liquidity. ABCBr's ratings also reflect the well-positioned franchise and its overall sound financial profile as a wholesale-funded bank. The bank operates under a well-defined strategy of providing credit and other banking services mainly to the large corporate segment (annual revenues over BRL800 million) and also corporates (annual revenues between BRL100 million and BRL800 million). The bank maintains a very strong liquidity position which enables lower funding costs. The bank continues to focus on the business segments that it knows well. During the past year, total loan, or on-balance-sheet exposure, only rose 7.3% and the expanded credit portfolio which includes guarantees and corporate securities rose 7%. The amount of guarantee exposure experienced a combined 6% increase during the LTM and this was mostly concentrated in the corporate segment which saw a 46.5% growth. Despite the high rate of growth in the corporate segment, this segment only represents 20% of total expanded credit portfolio. The bank's corporate securities portfolio saw 9% growth during 2018 where most of the growth came from the corporate segment. For 2019, management provided an expanded credit portfolio growth guidance of 11% to 15% which was above the 7% recorded in 2018. However it is likely to be achieved given the election uncertainties have passed and the improved economic outlook appears favorable. Management is expecting a higher demand from existing and new clients in the lower corporate segment whose risk will be mitigated by real guarantees and strict risk controls. Management also expects to continue to mitigate the pressured NIM by increasing fee revenues and lower credit costs. Fitch believes these expectations are reasonable. ABCBr's conservative underwriting standards are regularly monitored by various risk committees to avoid sector and client concentrations and to ensure good quality assets. Also, during the last four years, the bank had benefitted from reduced levels of competition while maintaining its conservative underwriting, which is reflected in its low level of non-performing loans. As of Dec. 31, 2018, ABCBr reported a low level of NPLs over 90 days to total credit exposure of 0.4%, while its impaired loan (D-H) to total loans ratio remained stable at 5.3% from 5.2% a year earlier. The over-90 day NPL ratio compares very well to the banking system average. ABCBr's favorable NPL ratio is a reflection of the focus on lower-risk companies and its conservative underwriting. The bank's loan loss reserve coverage ratio on NPLs over 90 days remained strong at 2.9% of total credit exposure. The bank continues to focus on ensuring a stable liquidity position through conservative asset liability management policies to mitigate gaps through hedging and funding diversification. Strategies include the sourcing of longer-term funding, which includes the use of longer-term instruments. ABCBr continues to maintain satisfactory capital ratios. At Dec. 31, 2018, the Fitch core ratio had remained relatively stable at 13.4% (14.0% a year earlier). The bank already well-exceeds the Central Bank regulatory minimum total capital requirement just by means of its FYE 2018 Tier I regulatory capital ratio of 13.4%. ABCBr had a total Regulatory Capital ratio of 17.2% at the end of fourth-quarter 2018. RATING SENSITIVITIES IDRS Positive Rating Action: ABCBr's IDR is constrained by Brazil's operating environment; as a result, an upgrade of these ratings is unlikely in the near future. Negative Rating Action: The bank's IDRs could be affected by a deterioration of Arab Banking Corporation's rating as the support rating is potentially sensitive to any change in assumptions around the propensity and ability of Arab Banking Corporation to provide timely support to the bank. ABCBr's ratings could also be affected by a further deterioration in the Sovereign rating, as the bank is closely linked with Brazil's operating environment. VR Positive Rating Action: ABCBr's VRs are constrained by Brazil's operating environment; as a result, an upgrade of these ratings is unlikely in the near future. Negative Rating Action: Although unlikely in Fitch's view, a significant deterioration of ABCBr's asset quality that results in credit costs that severely limit its profitability and ability to grow its capital, combined with a reduction in its liquidity or capitalization position could lead toward a downgrade of the bank's ratings. An unlikely decline in the FCC-to-risk-weighted assets ratio consistently below 11%, along with an operating profit-to-average risk weighted asset ratio consistently below 1.5% could result in a ratings review. ABCBr's VR rating could also be affected by a further deterioration in the Sovereign rating, as the bank is closely linked with Brazil's operating environment. NATIONAL Changes in ABCBr's IDRs or in the bank's credit profile relative to its Brazilian peers could result in changes in its National Ratings. Given that ABCBr's National Rating is currently at the top of the rating scale, an upgrade of this rating is not possible. SUPPORT RATING The SR is potentially sensitive to any change in assumptions around the propensity or ability of ABC to provide timely support to the bank. Fitch has affirmed the following ratings: Banco ABC Brasil: -- Long-Term Foreign Currency IDRs at 'BB'; Outlook Stable; -- Long-Term Local Currency IDRs at 'BB+'; Outlook Stable; -- Short-Term Foreign and Local Currency IDRs at 'B'; -- Viability Rating at 'bb-'; -- Long-Term National rating at 'AAA(bra)'; Outlook Stable; -- Short-Term National rating at 'F1+(bra)'; -- Support Rating at '3'. MARFRIG GLOBAL: Fitch Retains BB- IDR Amid NBM US' Notes Issue -------------------------------------------------------------- Fitch Ratings has assigned a 'BB-' rating to NBM US Holdings, Inc.'s proposed 7-year benchmark-sized senior unsecured notes. NBM US Holdings is a wholly-owned subsidiary of Marfrig Global food S.A. The notes are also unconditionally and irrevocably guaranteed by Marfrig, MARB BondCo PLC, Marfrig Holdings (Europe) B.V. and Marfrig Overseas Limited. The notes will be unsecured senior obligations and will rank pari passu with all unsecured and unsubordinated obligations of Marfrig and the subsidiaries guarantors. The proceeds are expected to be used to refinance existing indebtedness including existing notes due in 2021 and 2023. KEY RATING DRIVERS Evolving Business Profile: Marfrig divested Keystone to Tyson Foods, Inc (BBB/Stable) for a total enterprise value of USD2.4 billion at the end of 2018. The Keystone divestment came on the heels of Marfrig's acquisition of 51% of National Beef Packing Company, LLC for USD969 million in June 2018. Through these transactions Marfrig has increased its exposure to beef, however, some of the risks related to a single commodity are offset by the lack of historical correlation between the U.S. and Brazilian cattle cycles. Further, Marfrig will own 51% of much larger National Beef versus 100% of Keystone, and although National Beef's EBITDA will be consolidated 100%, there will be cash flow leakage due to substantial minority interests. The impact of this leakage on cash flow will be somewhat offset by lower capital expenditure needs at National Beef. Gradual Deleveraging: Fitch estimated that pro forma adjusted net debt/ EBITDA (excluding minority dividends) was about 3.5x in 2018 compared to 5.1x as of fiscal year-end 2017 (FYE17). Fitch expects Marfrig's net leverage to be below 3.5x in 2019 as a result of improved EBITDA due to positive domestic consumption in the USA and Brazil and the reopening of export markets. On February 8, 2019, Uruguay and Japan entered into a sanitary agreement that authorized exports of fresh beef between the two countries, which will benefit Marfrig, as it is the largest beef exporter in Uruguay. The company also made some bolt-on acquisitions in early 2019 which included Quickfood in Argentina (USD54.9 million), Varzea Grande from BRF in Brazil (BRL100 million) and Iowa Premium LLC (USD150 million) in the US. Product Concentration: While helping the company achieve its credit leverage targets, the sale of Keystone increased the company's product concentration and therefore business risk, as Keystone provided relatively stable cash flow as most of its sales were processed poultry products sold to McDonalds in the U.S.; the company is now a pure beef player with a processing capacity of 33,500 head/day. National Beef is the fourth largest beef processor in the United States with approximately 13% of the beef processing capacity in the U.S. (12,000 head/day). In South America business, Marfrig is one of the region's leading beef producers, with a primary processing capacity of over 21,000 head/day. Geographical diversification: Marfrig's ratings incorporate the company's geographic diversification in the volatile protein commodity industry. Fitch estimated that National Beef represented about 60% of the group EBITDA and the remaining in South America (mostly in Brazil). The geographic diversification helps to decrease risks related to disease and currency fluctuation. In addition, most of beef produced by National Beef is consumed in the U.S. and a small part exported to Japan and South Korea, which reduces the risks of tariffs and quotas faced by the company's operations in South America. Favorable Beef Outlook: Marfrig's competitive advantages stem from a favorable environment to raise cattle in Brazil and the U.S., the large scale of operations, access to exports markets from Brazil and the U.S. and long-term relationship with farmers, customers, and distributors. Global beef fundamentals are expected to remain positive in the next couple years for Brazilian and U.S. producers due to increased demand and better cattle availability. U.S. beef production is forecast to grow by nearly 2% in 2019 according to the USDA. In exports, Brazil and Argentina are poised to remain top suppliers to China as the country makes a concerted effort to boost its beef supplies as pork production will be hindered by disease issues. Among the significant industry risks are a downturn in the economy of a given export market, the imposition of increased tariffs or sanitary barriers, and strikes or other events that may affect the availability of ports and transportation. DERIVATION SUMMARY Marfrig ratings reflect its solid business profile and geographic diversification as a pure play in the beef industry with a large presence in South America (notably Brazil) and in the U.S. with National Beef. Marfrig is well positioned to compete in the global protein industry due to its size and geographic diversification. The business compares favorably regarding size with its regional peer Minerva S.A. (BB-/Stable), which is mainly a beef processor in South America. JBS S.A. (BB-/Stable) and Tyson Foods (BBB/Stable) enjoy a higher level of scale of operations, stronger FCF, and higher product and geographical diversification than Marfrig. JBS's rating is constrained by ongoing litigation issues. Regarding net leverage, Marfrig compares favorably to Minerva (BB-). Marfrig's leverage is higher than Tyson's. Marfrig is subject to a put option from minorities' shareholders. The put option related to National Beef could be exercised in January 2023 (payable one-third each year). The put option would be accelerated in the event of a change in control of Marfrig Global Foods S.A. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - Sales are driven by positive consumer demand in the U.S. and Brazil; - Bolt-on acquisitions - Adjusted Net debt/ EBITDA below 3.5x in 2019; RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action -- Sustainable and positive FCF; -- Improved and resilient operating margins in Marfrig Beef; -- Substantial decrease in gross and adjusted net Debt/ EBITDA (excl.dividends paid to minorities) to below 4.5x and 3.0x, respectively, on a sustained basis. Developments That May, Individually or Collectively, Lead to Negative Rating Action -- Negative FCF on a sustained basis; -- Net leverage above 4.5x on a sustainable basis. LIQUIDITY Adequate Liquidity: As of Dec. 30, 2018, Marfrig had USD1.85 Billion of cash and cash equivalent compared to USD946 million of short-term debt. The short-term debt is mainly related to the 2019 senior unsecured notes (USD0.5 billion) and trade finance lines. FULL LIST OF RATING ACTIONS Fitch currently rates Marfrig as follows: Marfrig Global Foods S.A. -- Long-Term Foreign and Local Currency IDR 'BB-'; -- National Long-Term Rating 'A(bra)'. The Rating Outlook is Stable. Marfrig Holdings (Europe) B.V. -- Senior unsecured notes due 2019, 2021, 2023 'BB-'. MARB BondCo PLC -- Senior unsecured notes due 2024 and 2025 'BB-'. NBM US Holdings, Inc Fitch has assigned a 'BB-' rating to the proposed senior unsecured notes guaranteed by Marfrig Global Food S.A. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Lack of Local Qualified Professionals Cited --------------------------------------------------------------- Dominican Today reports that representatives of the main business organizations in the Dominican Republic warned that just like the free zones, the industries find it impossible to get qualified professionals in engineering, chemistry and English proficiency in the country. National Business Council (Conep) president Pedro Brache said the situation forces them to hire foreigners, according to Dominican Today. He said the production equipment is increasingly sophisticated, for which demands a highly qualified professional, the report notes. For Industries Association vice president Circe Almanzar, "the government should evaluate in which areas to give scholarships, because what's coming out of the university isn't what's required," 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: Must 'Bury' US$3.9BB Cost of Red Tape, Paz Says ------------------------------------------------------------------- Dominican Today reports that Dominican Republic red tape is to blame for part of the failure of some micro, small and medium businesses, hurdles that are holding back the entrepreneurial capacity of Dominican citizens. National Competitiveness Council director, Rafael Paz, said the country should "bury" and put an end to the culture of stamps and certifications, because in the Dominican nation, its' believed that "a seal must be put on everything and that everything has to be controlled and verified," according to Dominican Today. The report notes that Mr. Paz said that when in a country obstacles persist that interfere in the interaction of the State and its citizens, economic activity is limited, thus "harming the social welfare that is intended to be achieved with regulations that should not be an impediment to development." "The regulations for 43 institutions and ministries, translated into 1,873 procedures and services, generate a social cost in the Dominican Republic of RD$197.2 billion (US$3.9 billion) per year which represents 5.46% of gross domestic product," the report quoted Mr. Paz as saying. The official said that to eradicate the problem that he affirms jeopardizes the business sector, a Regulatory Improvement Plan will be initiated that would reduce 70% of the social spending on regulations, the report notes. 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: Santiago Province Seeks Higher Gov't Investment ------------------------------------------------------------------- Dominican Today reports that the Dominican Republic's second biggest city and the Cibao region remain firm in their demand for higher Government investment for that part of the country, in keeping with its fiscal contribution to the national GDP. According to Santiago Merchants and Industries Association (ACIS) figures, Santiago province accounts for 17% of Dominican Republic's GDP, but receives just 3%, Dominican Today says. "It is difficult for a region to develop without the creation of a clear policy design, which could lead to the investment of what the same zone produces," said ACIS president, Sandy Filpo, the report discloses. Interviewed by the El Caribe media group, the business leader said that if the economic activities were to be tallied, the measurement would likely show that Santiago's contribution to GDP is higher than 17%, according to Dominican Today. "For example, what banks produce . . . They're taxed in Santo Domingo and it's seen as a single levy, not from Santiago, not from Cibao, but from the capital," he said, 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. =============== P A R A G U A Y =============== BIOCEANICO SOVEREIGN: Moody's Rates $732MM Secured Notes 'Ba1' -------------------------------------------------------------- Moody's Investors Service has assigned a Ba1 rating to Bioceanico Sovereign Certificate Limited $732 million senior secured notes. The outlook is stable. Proceeds from notes will be used by the issuer SPV (Bioceanico Sovereign Certificate Limited) to purchase construction certificates called Certificados de Reconocimiento de Obligacion de Pago or CROPs to be issued by the Government of Paraguay (Ba1 Stable) for the construction of the Corredor Vial Bioceanico' project, which is part of an ongoing road integration plan between Chile, Argentina, Paraguay and Brazil. The Project will be developed by a consortium formed by the sponsors Construtora Queiroz Galvao S.A. (50%) and Ocho A S.A. (50%) and will be financed through a combination of equity contributions, working capital facilities granted by public and private financial institutions and by the senior secured notes to be issued by the issuer, an Special Purpose Vehicle (SPV) domiciled in the Cayman Islands. Moody's has reviewed the preliminary draft legal documentation provided to date related to the debt issuance. The assigned rating assumes that there will be no material variation from the drafts reviewed and that all agreements will be legally valid, binding and enforceable. RATINGS RATIONALE The Ba1 rating and stable outlook reflect the proposed financing structure whereby the repayment of the notes will rely on payments made by the Government of Paraguay (Ba1 Stable) on the CROPs, which are certificates representative of direct, unconditional and irrevocable payment obligations from the government and payable in US dollars that the consortium formed by Construtora Queiroz Galvao S.A. and Ocho A S.A. will receive after performing certain construction work milestones. The assigned ratings also aknowledge that the CROPS constitute public external debt of the Republic of Paraguay as defined in Paraguay's sovereign debt documentation. The assigned rating recognizes that the proposed structure isolates the repayment of the notes from any performance and construction risks related to the sponsors, because the issuer of the notes will hold cash or will make investments according to a permitted investments policy until all CROPS generated after the completion of the construction milestones are purchased. Permitted investments under the debt documentation will consist of highly liquid investment grade securities that are not subject to price variations that could diminish their value at any time. Once construction is completed and all CROPs are acquired, repayment of the debt under the Notes will rely on the future payments under such CROPs, which are direct payment obligations from the Government of Paraguay. Moody's has incorporated into the rating that under the proposed structure, a construction delay that prevents the SPV from buying the minimum amount of CROPs by the specific dates detailed in the financing documents could lead to a partial or total termination event. Moody's understands that in the case of a delay in construction or a termination event, any potential shortfall in the SPV to repay bondholders would be at all times covered by a combination of funds in escrow accounts and a letter(s) of credit (LC) issued by a financial institution(s) rated at least at the same level of the Government of Paraguay. Moody's therefore understands that full completion of the project is not as critical as in a typical project finance structure because purchased CROPs will subsist as a contractual payment obligation of the Government of Paraguay even if the project is not finalized. The rating also incorporates the fact that the protection provided by the LC will remain in place at all times and that any potential required substitution of the LC or the LC provider will be made with sufficient anticipation to prevent lack of full coverage at all times during the construction period. Moody's recognizes that CROPs constitute public external debt of the Republic of Paraguay as defined in the sovereign debt documentation. Moody's also understands that each CROP expressly precludes all set-off rights, and that all payment obligations under the CROPS already issued and purchased by the issuer SPV will have no relation to any termination events or breaches that may be incurred in the construction of the remaining of project. Because of this and due to the nature of the direct payment obligation of the Government of Paraguay under the certificates, there is no a debt service reserve account contemplated in the financing structure, which is otherwise typical in many project finance transactions. Moody's typically applies a notching down approach for financial structures that lack a debt service reserve account. However, in the case of Bioceanico Sovereign Certificate Limited Moody's has not applied any notching adjustments because CROPs are direct obligations from the government and any liquidity shortfall at this level is already addressed by constraining the rating to Paraguay's foreign currency issuer rating. Outlook The rating outlook is stable, in line with the stable outlook of the Government of Paraguay, reflecting Moody's view that the creditworthiness of the issuer cannot be de-linked from the credit quality of the government as the repayment of the notes relies on payments by the Government of Paraguay on the construction certificates that the issuer is going to purchase. Moreover, the outlook incorporates Moody's expectation that the proposed structure will hold cash and liquid investments until the purchase of all the CROPs is completed. WHAT COULD CHANGE THE RATING UP/DOWN The Ba1 rating is closely tied and constrained by Paraguay's foreign currency issuer rating; therefore the rating could be upgraded if Paraguay's foreign currency issuer rating is upgraded. Similarly, a rating downgrade of the sovereign would likely result in negative rating actions for the notes. Corporate Profile Bioceanico Sovereign Certificate Limited is an Special Purpose Vehicle (SPV) domiciled in the Cayman Islands. Bioceanico Sovereign Certificate Limited will issue Senior Secured Notes to finance its CROP purchase commitment to a construction consortium formed by Construtora Queiroz Galvao S.A. (50%) Ocho A S.A. (50%), in connection with the financing for the design and construction of a new road between Loma Plata and Carmelo Peralta located in the Republic of Paraguay. The Project was awarded by the Ministry of Public Works and Communications and countersigned by the Ministry of Finance of Paraguay. BIOCEANICO SOVEREIGN: S&P Gives (P)BB Rating on $732MM Sec. Notes ----------------------------------------------------------------- S&P Global Ratings assigned its preliminary 'BB' rating to Bioceanico Sovereign Certificate Ltd.'s $732 million senior secured notes series 2019-1. The note issuance is a repack securitization backed by construction payment obligations (in Spanish, "Certificados de Reconocimiento de Obligacion de Pago", or "CROPs") issued by the Paraguayan Ministry of Public Works and Communications and signed by the Ministry of Finance, to finance the design and construction of a new road between Loma Plata and Carmelo Peralta located in the Republic of Paraguay (BB/Stable/B). The preliminary rating is based on information as of May 2, 2019. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary 'BB' rating reflects: -- The credit quality of the CROPs, which S&P believes to be at the same level as the foreign currency rating on Paraguay. -- The transaction's pass-through payment structure, which mitigates the risk of shortfalls and payment mismatches between assets and liabilities. The lack of construction, operating, or performance risks associated with the CROPs. This is because the Ministry of Finance (MOF) and Ministry of Public Works and Communications (MOPC) will each sign and issue one CROP to the issuer after Consorcio Corredor Vial Bioceanico (the consortium) satisfactorily completes each of the 20 predefined milestones of the project. Therefore, the CROP payments will not be contingent upon any risk related to the project, the project contract, the consortium, or the consortium's members. -- A CROP collection account held offshore that will be funded with payments received from Paraguay under the purchased CROPs. -- A consortium commitment termination event (CTE) protection account also held offshore and funded by the consortium as collateral support, which is to be used following the occurrence of either a total or partial CTE. -- Features within the transaction's structure that mitigate foreseeable risks (e.g., administrative delays or purchase extensions) of the generation of CROPs in exchange for additional collateral posted by the seller via direct deposits in the corresponding account and/or with a letter of credit (LOC) from an entity with a minimum required creditworthiness. -- Key credit risks, including macroeconomic and political factors that could affect S&P's rating on Paraguay and its view of the LOC provider's creditworthiness, which could limit the transaction's credit quality. -- The transaction's legal structure, asset isolation under the relevant jurisdictions, and the issuer's legal status, which S&P understands to be bankruptcy remote. ======= P E R U ======= NAUTILUS INKIA: S&P Affirms 'BB' ICR on Reorganization Completion ----------------------------------------------------------------- S&P Global Ratings affirmed its issuer credit rating on Nautilus Inkia Holdings LLC at 'BB' and the issue-level rating at 'BB-'. I Square Capital (ISQ; not rated) decided to reorganize its investments in Latin America in late 2018, pursuing gains in efficiency. Therefore, the infrastructure fund decided to consolidate several subsidiaries under Nautilus. The latter has stakes in Nautilus Inkia Holdings LLC, Nautilus Distributions Holdings LLC (Distributions; not individually rated), Nautilus Isthmus Holdings LLC (Isthmus; not individually rated), which are co-issuers and jointly responsible for the existing $600 million bullet notes, and Nautilus Energy TopCo LLC (not rated). Nautilus also consolidated Orazul (BB/Stable/--), Orazul Energy Guatemala S.A. (not rated), Orazul El Salvador S.A. (not rated), Orazul Energy Argentina S.A. (not rated), and Orazul Energy Chile S.A. (not rated). S&P now analyzes Inkia based on the Nautilus group's pro forma figures, and view the reorganization as neutral from a credit perspective, because the newly incorporated companies will generate around 18% of the group's total EBITDA and most of them have long-term contracts providing stability and predictability to its cash flows. More importantly, although some of the new subsidiaries have debt (the bulk of which is Orazul's $550 million bond), pro forma after the reorganization, Nautilus' main credit metrics will remain in line with our previous expectations. S&P expects adjusted debt to EBITDA to be 4.0x-4.5x, considering a consolidated EBITDA in the $750 million - $850 million range at Nautilus level. S&P still forecasts Inkia's EBITDA of $550 million - $600 million for the next two years. In addition, the group's strategy of selling a significant portion of its aggregate capacity under dollar-linked, long-term power purchase agreements (PPAs) continues to support stable and predictable cash flow generation. In 2018, 70% of the group's aggregate energy sales (in gigawatts [GWh]) were through PPAs. Given the PPAs' weighted average remaining life of 10 years at competitive prices, S&P expects a stable EBITDA generation going forward. Nautilus also participates in Guatemala's regulated distribution segment, enjoying a certain amount of stability the group's subsidiaries operate under a technical and independent regulatory framework. The above-mentioned strengths offset the group's presence in riskier jurisdictions such as Bolivia, Nicaragua and El Salvador, among others, and its exposure to competition (typical for unregulated power utilities). ===================== P U E R T O R I C O ===================== ASOCIACION DE PROPIETARIOS: Seeks to Hire Accountant ---------------------------------------------------- Asociacion De Propietarios Condominio Radio Centro seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire an accountant. The Debtor proposes to employ Asdrubal Delgado Biaggi, a certified public accountant, to prepare its monthly reports, financial statements, tax returns and cash flow projections needed for its bankruptcy plan, and provide other accounting services necessary to administer its bankruptcy estate. The accountant will charge an hourly fee of $50 for his services. Mr. Biaggi disclosed in court filings that he is "disinterested" as defined in Section 101(14) of the Bankruptcy Code. Mr. Biaggi maintains an office at: Asdrubal Delgado Biaggi 3062 Monaco Street Cabo Rojo, PR 00623 Mobile: 787-519-1963 Fax: 787-986-7439 Email: vipblock@hotmail.com About Asociacion De Propietarios Condominio Radio Centro Asociacion De Propietarios Condominio Radio Centro sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 19-02202) on April 23, 2019. At the time of the filing, the Debtor estimated assets of less than $100,000 and liabilities of less than $500,000. Gloria Justiniano Irizarry, Esq., at JUSTINIANO'S LAW OFFICE, is the Debtor's counsel. ASOCIACION DE PROPIETARIOS: Seeks to Hire Justiniano's as Counsel ----------------------------------------------------------------- Asociacion De Propietarios Condominio Radio Centro seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Justiniano's Law Office as its legal counsel. The firm will advise the Debtor of its duties under the Bankruptcy Code; examine officers as to the acts, conduct and property of the Debtor; assist in the preparation of a plan of reorganization; review proofs of claim; and provide other legal services in connection with its Chapter 11 case. Gloria Justiniano Irizarry, Esq., the firm's attorney who will be handling the case, will charge an hourly fee of $250. Her firm received a retainer in the amount of $3,500. Ms. Irizarry disclosed in court filings that she and other members of Justiniano's Law Office are "disinterested" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Gloria Justiniano Irizarry, Esq. Justiniano's Law Office Ensanche Martinez Calle A. Ramirez Silva #8 Mayaguez, PR 00680-4714 Phone: (787) 222-9272/(787) 805-2945 Email: justinianolaw@gmail.com About Asociacion De Propietarios Condominio Radio Centro Asociacion De Propietarios Condominio Radio Centro sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 19-02202) on April 23, 2019. At the time of the filing, the Debtor estimated assets of less than $100,000 and liabilities of less than $500,000. Gloria Justiniano Irizarry, Esq., at JUSTINIANO'S LAW OFFICE, is the Debtor's counsel. FIRST BANCORP: Fitch Hikes Long-Term IDR to 'B+', Outlook Stable ---------------------------------------------------------------- Fitch Ratings has upgraded First BanCorp's Long-Term Issuer Default Rating to 'B+' from 'B'. The Rating Outlook remains Stable. The upgrade reflects the resilience of FBP's financial profile, which was better than Fitch's expectations, despite a challenging operating environment in recent years. The upgrade is further supported by reduced uncertainty around FBP's operating environment over the Outlook horizon. The bank's ratings were previously constrained by potential weakening of its financial profile due to Puerto Rico's challenged fiscal position and the destruction caused by hurricanes Irma and Maria. However, this weakening did not materialize. Fitch upgraded FBP's ratings on Dec. 7, 2018 due to fundamental improvements in the company's financial profile during the prior years. KEY RATING DRIVERS IDRs and VRs The rating action reflects a change in Fitch's view of FBP's operating environment in Puerto Rico as well as Fitch's assessment of the relative importance of the bank's U.S. mainland operations in assessing its operating environment. Economic activity in Puerto Rico has been better than Fitch expected following hurricanes Irma and Maria in September 2017. Fitch's assessment of the operating environment in Puerto Rico incorporates the expectation that federal aid and reconstruction efforts will likely result in economic growth over the rating time horizon. Fitch expects that federal aid from the U.S. government and rebuilding efforts will have a positive short- to medium-term impact on the island's economy. Additionally, Fitch believes the size of the aid package outweighs some of the uncertainty around the timing and amount of federal aid that will Puerto Rico will ultimately receive. The latest approved fiscal plan from the Government of Puerto Rico estimates total aid of approximately $82 billion consisting of federal aid and insurance proceeds over a 15-year time period. Longer-term prospects for the island's economy, outside of the current Outlook horizon, depend heavily on the effectiveness of fiscal and structural reforms. Despite its upgrade, FBP's ratings continue to be constrained by a challenging and uncertain operating environment in Puerto Rico over the longer term. Damage caused by the hurricanes has complicated Puerto Rico's efforts to reverse outward migration, generate sustainable economic growth, and address its fiscal and debt imbalances. Fitch's action also reflects Fitch's view that FBP's financial profile has been more resilient than Fitch expected given the challenging fiscal situation in Puerto Rico and damage stemming from the hurricanes. Although FBP's asset quality is weaker relative to Puerto Rican peers and to U.S. mainland banks, deterioration in asset quality over the last several quarters has been less than Fitch's expectations, supporting its upgrade. Asset quality metrics such as net charge-offs and nonperforming assets to loans and other real estate owned have improved meaningfully over the last few years despite a challenging operating environment in Puerto Rico. Fitch expects that FBP will continue to reduce its nonperforming assets over the Outlook horizon. FBP's earnings performance has also been better than Fitch's expectations. Core earnings have improved and, importantly, stabilized despite challenges caused by the fiscal situation and hurricanes in Puerto Rico. Fitch still expects that earnings could face headwinds going forward as FBP continues to work down its relatively high levels of nonperforming assets, a rating constraint. In Fitch's view, capital remains a rating strength and should provide an adequate buffer for losses stemming from potential credit quality deterioration. At 1Q19, FBP's TCE and CET1 stood at 16.4% and 20.4%, respectively, which are among the highest in Fitch's rated universe in the U.S. Given FBP's risk profile and uncertainties that remain regarding the Puerto Rico economy, the company's higher capital ratios are viewed as prudent and supportive of the ratings. The rating action incorporates the expectation that FBP's capital ratios could come down from current levels to the extent FBP pursues merger and acquisition (M&A) opportunities. FBP's funding profile is well situated for its current ratings. Fitch observes that there has been modest improvement over time with the company reducing its reliance on noncore funding sources, particularly brokered deposits. Historically, FBP's funding profile has been weaker when compared to U.S. bank peers given greater reliance on non-core funding sources. LONG- AND SHORT-TERM DEPOSIT RATINGS FBP's uninsured deposits at its subsidiary bank are rated one notch higher than FBP's IDR because U.S. uninsured deposits benefit from depositor preference. U.S. depositor preference gives deposit liabilities superior recovery prospects in the event of default. HOLDING COMPANY FBP has a bank holding company structure with the bank as the main subsidiary. The company's IDRs and VRs are equalized with those of the operating company and bank, reflecting its role as the bank holding company, which is mandated in the U.S. to act as a source of strength for its bank subsidiary. Double leverage is below 120% for the FBP parent company. SUPPORT RATING AND SUPPORT RATING FLOOR The Support Rating of '5' and Support Ratings Floor of 'NF' reflect Fitch's view that FBP is not considered systemically important, and therefore the probability of support is unlikely. The IDRs and VRs do not incorporate any support. RATING SENSITIVITIES IDRs and VRs With its rating action, Fitch view's FBP's ratings as well situated at their current levels. FBP's operating environment continues to be a higher influence factor on its ratings. Therefore, FBP's ratings would be sensitive to Fitch's assessment economic and demographic trends in Puerto Rico over the medium- and long-term time horizons. Fitch expects that Puerto Rico's economy will likely grow over the next few years but that longer-term growth prospects are less certain and are dependent on the effectiveness of fiscal and structural reforms in Puerto Rico. Fitch will continue to monitor data such as population growth, GNP per capita, and Ease of Doing Business rankings in its assessment of the operating environment in Puerto Rico over the medium and long term. Positive rating momentum could build over time if the commonwealth's planned structural and fiscal reforms result in stabilizing or improving demographic trends, economic growth and Ease of Doing Business scores. Conversely, negative rating pressure could develop if the planned structural and fiscal reforms are not effective, resulting in weakening demographic trends, economic growth and Ease of Doing Business scores. FBP's ratings could also be sensitive to environmental factors such as severe weather events that result in weaker demographic or economic growth trends and/or sustained asset quality deterioration. FBP's ratings could come under pressure should the company manage capital ratios below peers over time, particularly if the company's nonperforming assets remain elevated on a relative basis. Positive rating momentum could develop over time should FBP successfully reduce its level of nonperforming assets to be more in line with peers while maintaining capital levels in line with or higher than peers. Conversely, Fitch could take negative action should FBP engage in M&A resulting in capital ratios falling below peer levels, absent credible plans to rebuild capital to levels in line with or better than peers. Over the longer term, positive rating momentum could stem from an improved franchise indicated by profitable loan and deposit market share growth in the commonwealth. Fitch considers FBP's current relative market position as a limiting factor due to its market share in Puerto Rico. FBP is currently the second largest bank on the island with loan and deposit market shares of 19% and 12%, respectively, as of 2Q18. This compares to BPOP's loan and deposit market shares in Puerto Rico of 49% and 58%, respectively. LONG- AND SHORT-TERM DEPOSIT RATINGS The ratings of long- and short-term deposits issued by FBP's subsidiary are primarily sensitive to any change in the company's IDRs. FBP's deposit ratings could be similarly affected should the company's Long-Term IDR change. HOLDING COMPANY If FBP became undercapitalized or increased double leverage significantly, Fitch could notch the holding company IDR and VR down from the ratings of the bank subsidiary. Additionally, upward momentum at the holding company could be limited should FBP manage its holding company liquidity aggressively over time. SUPPORT RATING AND SUPPORT RATING FLOOR The Support Rating and Support Rating Floor are sensitive to Fitch's assumption around capacity to procure extraordinary support in case of need. Fitch has upgraded the following ratings: First BanCorp -- Long-Term IDR to 'B+' from 'B'; Outlook Stable; -- Viability Rating to 'b+' from 'b'. FirstBank Puerto Rico -- Long-Term IDR to 'B+' from 'B'; Outlook Stable; -- Long-term deposit to 'BB-'/'RR3' from 'B+'/'RR3'; -- Viability Rating to 'b+' from 'b'. Fitch has affirmed the following ratings: First BanCorp -- Short-Term IDR at 'B'; -- Support at '5'; -- Support floor at 'NF'. FirstBank Puerto Rico -- Short-Term IDR at 'B'; -- Short-term Deposits at 'B'; -- Support at '5'; -- Support floor at 'NF'. JJE INC: Seeks to Hire Gratacos Law Firm as Legal Counsel --------------------------------------------------------- JJE, Inc., seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Gratacos Law Firm, P.S.C., as its legal counsel. The firm will advise the Debtor of its powers and duties under the Bankruptcy Code; assist the Debtor in negotiation with its creditors concerning the orderly liquidation of its assets or the formulation of a reorganization plan; and provide other legal services in connection with its Chapter 11 case. Gratacos Law Firm received the sum of $4,467 for legal expenses including the filing fee, and $1,250 as a retainer. Victor Gratacos Diaz, Esq., at Gratacos Law Firm, disclosed in court filings that his firm is "disinterested" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Victor Gratacos Diaz, Esq. Gratacos Law Firm, P.S.C. P.O. Box 7571 Caguas, PR 00726 Phone: (787) 746-4772 Fax: (787) 746-3633 Email: bankruptcy@gratacoslaw.com About JJE Inc. JJE, Inc., is a home health care services provider based in Manati, Puerto Rico. JJE, Inc., filed a Chapter 11 petition (Bankr. D.P.R. Case No. 19-02034) on April 12, 2019, and is represented by Victor Gratacos Diaz, Esq., in Caguas, Puerto Rico. In the petition signed by Jenny Olivo, president, the Debtor disclosed $295,244 in total assets and $1,953,718 in total liabilities. KONA GRILL: Case Summary & 30 Largest Unsecured Creditors --------------------------------------------------------- Lead Debtor: Kona Grill, Inc. 15059 North Scottsdale Road, Suite 300 Scottsdale, AZ 85254 Business Description: Kona Grill, Inc. -- https://www.konagrill.com -- owns and operates 27 casual dining restaurants in 18 states, as well as Puerto Rico, serving contemporary American favorites, sushi, and alcoholic beverages throughout the United States and Puerto Rico. In addition, Kona Grill has two international restaurants that operate under franchise agreements. As of April 30, 2019, the Debtors employ approximately 2,400 people. Chapter 11 Petition Date: April 30, 2019 Court: United States Bankruptcy Court District of Delaware (Delaware) Nine affiliates that simultaneously filed voluntary petitions seeking relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- Kona Grill, Inc. (Lead Case) 19-10953 Kona Restaurant Holdings, Inc. 19-10954 Kona Sushi, Inc. 19-10955 Kona Macadamia, Inc. 19-10956 Kona Texas Restaurants, Inc. 19-10957 Kona Grill International Holdings, Inc. 19-10958 Kona Baltimore, Inc. 19-10959 Kona Grill International, Inc. 19-10960 Kona Grill Puerto Rico, Inc. 19-10961 Debtors' Bankruptcy Counsel: Jeremy V. Richards, Esq. James E. O'Neill, Esq. John W. Lucas, Esq. PACHULSKI STANG ZIEL & JONES LLP 919 N. Market Street, 17th Floor Wilmington, DE 91899 Tel: (302) 652-4100 Fax: (302) 652-4400 Email: jrichards@pszjlaw.com jo'neill@pszjlaw.com jlucas@pszjlaw.com Debtors' Investment Banker: PIPER JAFFRAY Debtors' Restructuring Advisor: ALVAREZ & MARSAL NORTH AMERICA, LLC Debtors' Claims & Noticing Agent: EPIQ CORPORATE RESTRUCTURING, LLC https://dm.epiq11.com/case/KNG/info Total Assets as of Dec. 31, 2018: $53,613,000 Total Debts as of Dec. 31, 2018: $74,049,000 The petition was signed by Christopher J. Wells, chief restructuring officer. A full-text copy of Kona Grill's petition is available for free at: http://bankrupt.com/misc/deb19-10953.pdf Consolidated List of Debtors' 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ 1. Fashion Show Mall, LLC Litigation Undetermined Attn: Drew Nieman and/or Law/Lease Admin Dept. c/o Fashion Show Attn: Law/Lease Admin Dept. 110 N. Wacker Dr. Chicago, IL 60606 Tel: 312.935.1968 Email: drew.nieman@cbre.com or sara.spicklemire@cbre.com 2. The Irvine Company LLC Litigation Undetermined Attn: Blake Windal and/or General Counsel Retail Properties 101 Innovation Irvine, CA 92617 Tel: 949.789.9180 Email: bwindal@irvinecompany.com 3. JFC Trade Payable $572,375 Attn: Jason Koyama 7101 E. Slauson Ave. Los Angeles, CA 90040 Tel: 323.721.6100 Email: jkoyama@jfc.com 4. Dolphin Mall Lease $500,000 Associates, LLC Termination Attn: Michele Walton Settlement c/o Taubman 200 E Long Lake Rd., Ste. 300 Bloomfield Hills, MI 48304-2324 Tel: 248.258.7225 Email: mwalton@taubman.com 5. Scottsdale Quarter Reit Trade Payable $326,847 Attn: Joshua Lindimore 180 E. Broad St., 21st Floor Columbus, OH 43215 Tel: 614.887.5671 Email: Joshua.lindimore@ washingtonprime.com 6. Taubman Cherry Creek LP Trade Payable $177,514 Attn: Michele Walton c/o Taubman 200 E Long Lake Rd., Ste. 300 Bloomfield Hills, MI 48304-2324 Tel: 248.258.7225 Email: mwalton@taubman.com 7. Edward Don & Company Trade Payable $163,451 Attn: Frederica Campbell 9801 Adam Don Parkway Woodridge, IL 60517 Tel: 708.442.9400 Email: frederlcacampbell@don.com 8. TRG IMP LLC Trade Payable $155,390 Attn: Michele Walton c/o Taubman 200 E Long Lake Rd., Ste. 300 Bloomfield Hills, Ml 48304-2324 Tel: 248.258.7225 Email: mwalton@taubman.com 9. Masion LLP Trade Payable $143,051 Attn: Doug Holod 3300 Wells Fargo Center 90 South 7th Street Minneapolis, MN Tel: 612.672.8200 Email: doug.holod@masion.com 10. TWC Chandler Trade Payable $138,913 Attn: Guy Mercurio c/o Macerich 11411 N. Tatum Blvd. Phoenix, AZ 85028 Tel: 214.373.5222 Email: Guy.Mercurio@macerich.com 11. Country Club Plaza JV LLC Trade Payable $136,679 Attn: Michele Walton c/o Taubman 200 E. Long Lake, Suite 300 Bloomfield Hills, Ml 48304-2324 Tel: 248.258.7225 Email: mwalton@taubman.com 12. Bear Stearns Com Mg Trade Payable $132,729 Sec Inc Mg Pt Ct Series 2005 - Pwr 7 Remic I Attn: Angelina Scarcelli c/o Colliers International 3960 Howard Hughes Pkwy., Ste. 150 Las Vegas, NV 89169 Tel: 702.836.3768 Email: Angelina.Scarcelli@colliers.com 13. Continental Atrium Corporation Lease $125,000 Attn: Larry Helfman Termination 2780 Skypark Dr., Ste. 325 Settlement Torrance, CA 90505 Tel: 310.640.1620 Email: lah@helfmanlaw.com 14. TB Mall at UTC, LLC Trade Payable $121,392 Attn: Michele Walton c/o Taubman 200 E Long Lake Rd., Ste. 300 Bloomfield Hills, Ml 48304-2324 Tel: 248.258.7225 Email: mwalton@taubman.com 15. Spgii Domain, LP Trade Payable $120,166 c/o Simon Property Group Attn: Debra Burns and/or Legal Dept. 225 W. Washington St lndianaoolis, IN 46204 Tel: 317-263-7134 Email: dburns@simon.com 16. Aramark Trade Payable $118,987 Attn: Misti Jones 1515 E. Hadley St., Suite 100 Phoenix, AZ 85034 Tel: 602.254.6222 Email: Jones-Misti@aramark.com 17. ICRE Reit Holdings Trade Payable $111,755 Attn: Jennifer Roberts c/o LPC Commercial Services, Inc. 4601 N. Fairfax Dr., Ste.1115 Arlington, VA 22203 Tel: 703.351.0000 Email: jroberts@lpc.com 18. Baybrook JV 1 LLC Trade Payable $104,202 Attn: Sherri Braddberry 110 N. Wacker Dr. Chicago, IL 60606 Tel: 312.960.5859 Email: sherri.bradberry@ggp.com 19. Lincolnshire Propco, LLC Trade Payable $99,483 Attn: Amy Levin clo Next Property Management 5215 Old Orchard Rd., Ste. 880 Skokie. IL 60077 Tel: 847.881.2000 Email: alevin@nextrealty.com 20. HG Galleria LLC Trade Payable $97,146 Attn: Barb Deritter and/or Legal Dept. c/o HG Galleria I, II, III, LP 225 W. Washington St. Indianapolis, IN 46204 Tel: 317.263.7949 Email: bderiter@simon.com 21. Crawfish, LLC Trade Payable $92,531 Attn: Steve Sumell c/o Trade Mark Property 1701 River Run, Ste. 500 Ft. Worth, TX 76107 Tel: 817.870.1122 Email: ssumell@trademarkproperty.com 22. Rich Taubman Associates Trade Payable $88,491 Attn: Michele Walton 200 E. Long Lake Rd., Ste. 300 Bloomfield Hills, Ml 48304-2324 Tel: 248.258.7225 Email: mwalton@taubman.com 23. Hawaiian Fresh Seafood Trade Payable $87,212 Attn: Frank Porcelli 2290 Alahao Place, Unit 100 Honolulu, HI 96819 Tel: 800.845.8862 Email: frank@hawailanfresheafood.com 24. Banyan Street/Gap 1 Trade Payable $85,780 East Pratt Holdings LLC Attn: Zac Gruber 80 SW 8th St., Ste. 2200 Miami, FL 33130 Tel: 305.722.9400 Email: zgruber@banyanstreet.com 25. TWLDC Holdings, LP Trade Payable $81,293 Attn: Robin Parker 3 Waterway Square Place c/o Howard Hughes Corp. 1790 Hughes Landing, Ste. 600 The Woodlands, TX 77380 Tel: 281.475.2111 Email: robin.parker@howardhughes.com 26. Plaza Internacional Trade Payable $80,384 Puerto Rico LLC Attn: Michele Walton c/o Taubman 200 E. Long Lake Rd., Ste. 300 Bloomfield Hills, Ml 48304-2324 Tel: 248.258.7225 Email: mwalton@taubman.com 27. CBL-T-C, LLC dba Trade Payable $79,518 Coolsprings Mall, LLC CBL Center Attn: Debbie Bell 2030 Hamilton Place Blvd., Suite 500 Chattanooga, TN 37421 Tel: 423.855.0001 Email: Debble.bell@cblproperties.com 28. Excel Trust, LP Trade Payable $76,498 Attn: Debra Brigher, Legal Dept. c/o Shopcore Properties Two Liberty Place, Ste. 3325 50 S. 16th St. Philadelphia, PA 19102 Tel: 215.330-4201 Email: legal@shopcore.com 29. Freshpoint Trade Payable $72,343 Attn: Brenden St. John 711 North Orlando Ave., Ste. 201 Maitland, FL 32751 Tel: 404.831-2185 Email: Brenden.stjohn@freshpoint.com 30. True World Foods Trade Payable $62,482 Attn: Keiko Moreno 24 Link Drive Rockleigh, NJ 07647 Tel: 201.750.0024 Email: k.moreno@trueworldfoods.com POPULAR INC: Fitch Hikes Long-Term IDR to 'BB', Outlook Stable -------------------------------------------------------------- Fitch Ratings has upgraded Popular Inc.'s Long-Term Issuer Default Rating to 'BB' from 'BB-'. The Rating Outlook remains Stable. The upgrade reflects the resilience of BPOP's financial profile, which was better than Fitch's expectations, despite a challenging operating environment in recent years. The upgrade is further supported by reduced uncertainty around the BPOP's operating environment over the Outlook horizon. The bank's ratings were previously constrained by potential weakening of its financial profile due to Puerto Rico's challenged fiscal position and the destruction caused by hurricanes Irma and Maria would result in a weakened financial profile. However, this weakening did not materialize. KEY RATING DRIVERS IDRs, VRs AND SENIOR DEBT The rating action reflects a change in Fitch's view of BPOP's operating environment in Puerto Rico as well as Fitch's assessment of the relative importance of the bank's U.S. mainland operations in assessing its operating environment. Economic activity in Puerto Rico has been better than Fitch expected following hurricanes Irma and Maria in September 2017. Fitch's assessment of the operating environment in Puerto Rico incorporates the expectation that federal aid and reconstruction efforts will likely result in economic growth over the rating time horizon. Fitch expects that federal aid from the U.S. government and rebuilding efforts will have a positive short- to medium-term impact on the island's economy. Additionally, Fitch believes the size of the aid package outweighs some of the uncertainty around the timing and amount of federal aid that will Puerto Rico will ultimately receive. The latest approved fiscal plan from the Government of Puerto Rico estimates total aid of approximately $82 billion consisting of federal aid and insurance proceeds over a 15-year time period. Longer-term prospects for the island's economy, outside the current Outlook horizon, depend heavily on the effectiveness of fiscal and structural reforms. Despite the upgrade, BPOP's ratings continue to be constrained by a challenging and uncertain operating environment in Puerto Rico over the longer term. The damage caused by the hurricanes has complicated Puerto Rico's efforts to reverse outward migration, generate sustainable economic growth, and address its fiscal and debt imbalances. Incorporated into its action is Fitch's view that BPOP's risk appetite is in line with its current rating level and could limit upward rating potential for BPOP over the longer term. Positively, BPOP has meaningfully reduced its exposure to construction and commercial loans to SMEs in Puerto Rico over the last several years, which were responsible for the vast majority of BPOP's commercial net charge-offs on the island since the financial crisis. However, BPOP's has exhibited outsized growth in its U.S. mainland CRE portfolio over the last several years. Fitch has voiced concerns about outsized growth in CRE, particularly in multifamily lending, due to weakening underwriting standards and the risk stemming from overvaluation within the sector. Fitch's action also reflects Fitch's view that BPOP's financial profile has been more resilient than Fitch expected given the challenging fiscal situation in Puerto Rico and damage stemming from the hurricanes. Although BPOP's asset quality is weaker relative to U.S. mainland banks, deterioration in asset quality stemming from the hurricanes and fiscal challenges in Puerto Rico has been minimal, supporting its upgrade. Fitch expects that asset quality measures will stabilize or improve modestly over the Outlook horizon. BPOP's earnings performance over the last year has exceeded Fitch's expectations. The company's core earnings have improved due to a significant reduction in due to reduced provision expenses, increased fee income and higher spread revenue, partially offset by higher operating expenses. In Fitch's view, capital remains a rating strength for BPOP and should provide an adequate buffer to potential losses stemming from credit quality deterioration. For 1Q19, BPOP's TCE and CET1 stood at 9.8% and 16.4%, respectively, which are on the high end of Fitch's rated universe in the U.S. Fitch views the company's higher capital ratios as prudent and supportive of ratings and expects that capital ratios may come down modestly from current levels over the next few years through increased shareholder returns. BPOP has a solid funding profile driven by its leading deposit franchise in Puerto Rico and a favorable loan-to-deposit ratio. The company's loan-to-deposit ratio has decreased over the past couple of years to 64% at 1Q19 driven in part by weak organic loan demand in Puerto Rico and an influx of public sector deposits that are collateralized by high quality liquid securities. LONG- AND SHORT-TERM DEPOSIT RATINGS BPOP's uninsured deposit ratings at its subsidiary banks are rated one notch higher than BPOP's IDR and senior unsecured debt rating because U.S. uninsured deposits benefit from depositor preference. U.S. depositor preference gives deposit liabilities superior recovery prospects in the event of default. SUBORDINATED DEBT AND OTHER HYBRID SECURITIES BPOP's hybrid capital instruments issued are notched down from the company's Viability Rating in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which may vary considerably. BPOP's preferred stock and trust preferred stock rating are rated three notches below its VR in accordance with Fitch's assessment of the instruments' non-performance and loss severity risk profiles for issuers with VRs in the 'bb' category. HOLDING COMPANY BPOP has a bank holding company structure with the bank as the main subsidiary. IDRs and VRs are equalized with those of the operating companies and banks, reflecting its role as the bank holding company, which is mandated in the U.S. to act as a source of strength for its bank subsidiaries. Double leverage is below 120% for the BPOP parent company. SUPPORT RATING AND SUPPORT RATING FLOOR The Support Rating of '5' and Support Ratings Floor of 'NF' reflect Fitch's view that BPOP is not considered systemically important, and therefore the probability of support is unlikely. The IDRs and VRs do not incorporate any support. RATING SENSITIVITIES IDRs, VRs AND SENIOR DEBT With its rating action, Fitch view's BPOP's ratings as well situated at their current levels. BPOP's operating environment continues to be a higher influence factor on its ratings. Therefore, BPOP's ratings would be sensitive to Fitch's assessment economic and demographic trends in Puerto Rico over the medium- and long-term time horizons. Fitch expects that Puerto Rico's economy will likely grow over the next few years, but that longer-term growth prospects are less certain and are dependent on the effectiveness of fiscal and structural reforms in Puerto Rico. Fitch will continue to monitor data such as population growth, GNP per capita, and Ease of Doing Business rankings in its assessment of the operating environment in Puerto Rico over the medium and long term. Positive rating momentum could build over time if the commonwealth's planned structural and fiscal reforms result in stabilizing or improving demographic trends, economic growth and Ease of Doing Business scores. Conversely, negative rating pressure could develop if the planned structural and fiscal reforms are not effective, resulting in weakening demographic trends, economic growth and Ease of Doing Business scores. BPOP's ratings could also be sensitive to environmental factors such as severe weather events that result in weaker demographic or economic growth trends and/or sustained asset quality deterioration. BPOP's ratings would also be sensitive to changes in risk appetite such that credit, market, or operational risk is likely to increase over time from current levels. Negative rating pressure could result from loan growth in excess of economic growth or increased exposure to higher-risk loan types, particularly if accompanied by materially weaker capital ratios. Positive rating pressure could develop should BPOP exhibit a reduced risk appetite relative to current levels, particularly if accompanied by stable capital levels. LONG- AND SHORT-TERM DEPOSIT RATINGS The ratings of long- and short-term deposits issued by BPOP subsidiaries are primarily sensitive to any change in the company's IDRs. BPOP's deposit ratings could be similarly affected should the company's Long-Term IDR change. SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The ratings of hybrid securities are sensitive to any change in BPOP's Long-Term IDR or to changes in BPOP's propensity to make coupon payments that are permitted but not compulsory under the instruments' documentation. HOLDING COMPANY If BPOP became undercapitalized or increased double leverage significantly, Fitch could notch the holding company IDR and VR down from the ratings of the operating companies. SUPPORT RATING AND SUPPORT RATING FLOOR The Support Rating and Support Rating Floor are sensitive to Fitch's assumption around capacity to procure extraordinary support in case of need. Fitch has upgraded the following ratings: Popular, Inc. -- Long-term IDR to 'BB' from 'BB-'; Outlook Stable -- Senior unsecured to 'BB' from 'BB-'; -- Viability rating to 'bb' from 'bb-'; -- Preferred stock to 'B' from 'B-'. Popular North America, Inc. -- Long-term IDR to 'BB' from 'BB-'; Outlook Stable -- Senior unsecured to 'BB' from 'BB-'; -- Viability rating to 'bb' from 'bb-'. Popular Bank -- Long-term IDR to 'BB' from 'BB-'; Outlook Stable -- Long-term deposits to 'BB+' from 'BB'; -- Viability rating to 'bb' from 'bb-'. Banco Popular de Puerto Rico -- Long-term IDR to 'BB' from 'BB-'; Outlook Stable -- Viability rating to 'bb' from 'bb-'. Popular Capital Trust I -- Trust preferred to 'B' from 'B-'. Popular Capital Trust II -- Trust preferred to 'B' from 'B-'. Popular North America Capital Trust I -- Trust preferred to 'B' from 'B-'. Fitch has affirmed the following ratings: Popular, Inc. -- Short-term IDR at 'B'; -- Short-term Debt at 'B'. -- Support at '5'; -- Support floor at 'NF'. Popular North America, Inc. -- Short-term IDR at 'B'; -- Short-term Debt at 'B'. -- Support at '5'; -- Support floor at 'NF'. Popular Bank -- Short-term IDR at 'B'; -- Short-term deposits at 'B'. -- Support at '5'; -- Support floor at 'NF'. Banco Popular de Puerto Rico -- Short-term IDR at 'B'; -- Short-term deposits at 'B'. -- Support at '5'; -- Support floor at 'NF'. Fitch has assigned the following rating: Banco Popular de Puerto Rico -- Long-term deposits 'BB+'; SKYTEC INC: May 17 Approval Hearing on Disclosure Statement Set --------------------------------------------------------------- Bankruptcy Judge Edward A. Godoy will convene a hearing on May 17, 2019 at 10:00 a.m. to consider final approval of Skytec, Inc.'s amended disclosure statement. The motion to appoint trustee, filed by Logistic Systems, Inc., at docket number 149 is set for the same hearing. The debtor has been granted an extension of time until April 29, 2019 to respond to Logistic Systems' motion. About Skytec Inc. Skytec, Inc., is a privately-held company based in Puerto Rico that provides wireless telecommunication solutions. Skytec sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 18-05288) on Sept. 12, 2018. In the petition signed by Henry L. Barreda, president, the Debtor disclosed $2,119,734 in assets and $5,848,090 in liabilities. Judge Enrique S. Lamoutte Inclan presides over the case. The Debtor tapped Fuentes Law Offices, LLC as its legal counsel. =============== X X X X X X X X =============== [*] BOND PRICING: For the Week April 29 to May 3, 2019 ------------------------------------------------------ Issuer Name Cpn Price Maturity Country Curr ----------- --- ----- -------- ------- --- MIE Holdings Corp 7.5 56.2 4/25/2019 HK USD Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD China Huiyuan Juice Gr 6.5 46.6 8/16/2020 CN USD Yida China Holdings Lt 7.0 74.3 4/19/2020 CN USD Noble Holding Internat 5.3 60.5 3/15/2042 KY USD YPF SA 16.5 67.3 5/9/2022 AR ARS Noble Holding Internat 6.2 62.2 8/1/2040 KY USD Odebrecht Finance Ltd 7.0 17.0 4/21/2020 KY USD Banco Macro SA 17.5 65.2 5/8/2022 AR ARS KrisEnergy Ltd 4.0 40.4 6/9/2022 SG SGD Noble Holding Internat 6.1 62.0 3/1/2041 KY USD USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD Polarcus Ltd 5.6 71.8 7/1/2022 AE USD Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD MIE Holdings Corp 7.5 56.4 4/25/2019 HK USD Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD YPF SA 16.5 67.3 5/9/2022 AR ARS Provincia del Chubut A 4.5 2208 3/30/2021 AR USD Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD Enel Americas SA 5.8 32.7 6/15/2022 CL CLP Banco Macro SA 17.5 65.2 5/8/2022 AR ARS Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Province of Santa Fe 6.9 75.2 11/1/2027 AR USD Odebrecht Finance Ltd 7.0 16.5 4/21/2020 KY USD Province of Santa Fe 6.9 74.7 11/1/2027 AR USD Embotelladora Andina S 3.5 37.9 8/16/2020 CL CLP USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Empresa Provincial de 12.5 0.0 1/29/2020 AR USD Cia Energetica de Pern 6.2 1.1 1/15/2022 BR BRL Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY Plaza SA 3.5 38.3 8/15/2020 CL CLP Banco Security SA 3.0 5.6 7/1/2019 CL CLP Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD Corp Universidad de Co 5.9 64.2 11/10/2021 CL CLP City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD Fospar S/A 6.5 1.2 5/15/2026 BR BRL Empresa de Transporte 4.3 30.9 7/15/2020 CL CLP Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD SACI Falabella 2.3 50.6 7/15/2020 CL CLP Sylph Ltd 2.4 65.1 9/25/2036 KY USD Banco Security SA 3.0 27.4 6/1/2021 CL CLP Empresa Electrica de l 2.5 63.8 5/15/2021 CL CLP Sociedad Austral de El 3.0 17.0 9/20/2019 CL CLP Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP Esval SA 3.5 49.9 2/15/2026 CL CLP ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2019. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *