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       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, May 31, 2019, Vol. 20, No. 109

                           Headlines



A R G E N T I N A

ARGENTINA: Paralyzed by Fifth General Strike Against Government


B R A Z I L

ATVOS AGROINDUSTRIAL: Said to be Filing for Banrkuptcy
BANCO SOFISA: Moody's Affirms Ba2 Deposit Ratings, Outlook Stable
BR PROPERTIES: Fitch Alters Then Withdraws 'BB-' IDRs
COMPANHIA DE GAS: Fitch Affirms 'BB' Foreign Currency IDR
COMPANHIA SIDERURGICA: Fitch Hikes LT IDRs to B, Outlook Positive

OI SA: Fitch Affirms LongTerm IDRs at 'B-', Outlook Stable


E C U A D O R

ECUADOR: To Ease Housing Shortage With $200 Million IDB Support


J A M A I C A

JAMAICA: Realtors' Association Calls for More High End Housing


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Businessman Pleads Guilty in Houston Court

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Paralyzed by Fifth General Strike Against Government
---------------------------------------------------------------
EFE News reports that cities in Argentina were without public
transport, school classes, garbage collection, banks and health
services in the nation's fifth general strike.

The General Confederation of Labor (CGT) began a 24-hour general
strike at midnight on May 29 to protest the economic policy of
President Mauricio Macri, according to EFE News.

As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings in June 2018 affirmed its 'B+' long-term sovereign
credit ratings on the Republic of Argentina. S&P's long-term
sovereign credit ratings on Argentina was raise to 'B+' from 'B' in
October 2017. The outlook on the long-term ratings remains stable.

In May 2018, Fitch Ratings affirmed Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'B' and revised the
Outlook to Stable from Positive.

In December 2017, Moody's Investors Service upgraded the Government
of Argentina's local and foreign currency issuer and senior
unsecured ratings to B2 from B3. The senior unsecured shelves were
upgraded to (P)B2 from (P)B3. The outlook on the ratings is
stable.
At the same time, Argentina's short-term rating was affirmed at Not
Prime (NP). The senior unsecured ratings for unrestructured debt
were affirmed at Ca and the unrestructured senior unsecured shelf
affirmed at (P)Ca. Moody's said the key drivers of the upgrade of
the rating to B2 are: (1) a record of macro-economic reforms that
are beginning to address long existing distortions in Argentina's
economy; and (2) the likelihood that reforms will continue and in
turn sustain the recent return to positive economic growth.

The stable outlook on Argentina's B2 ratings balances Argentina's
credit strengths of its large, diverse economy and moderate income
levels against the credit challenges posed by still high fiscal
deficits and a reliance on external financing, which increases its
vulnerability to external event risk, said Moody's.

Back in July 2014, Argentina defaulted on some of its debt, after
expiration of a 30-day grace period on a US$539 million interest
payment.  Earlier that day, talks with a court-appointed mediator
ended without resolving a standoff between the country and a group
of hedge funds seeking full payment on bonds that the country had
defaulted on in 2001. A U.S. judge had ruled that the interest
payment couldn't be made unless the hedge funds led by Elliott
Management Corp., got the US$1.5 billion they claimed. The country
hasn't been able to access international credit markets since its
US$95 billion default 13 years ago. On March 30, 2016, Argentina's
Congress passed a bill that will allow the government to repay
holders of debt that the South American country defaulted on in
2001, including a group of litigating hedge funds that won
judgments in a New York court. The bill passed by a vote of 54-16.




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B R A Z I L
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ATVOS AGROINDUSTRIAL: Said to be Filing for Banrkuptcy
------------------------------------------------------
Aluisio Alves at Reuters reports that Atvos Agroindustrial
Participacoes SA, the sugar and ethanol unit of Brazilian
conglomerate Odebrecht SA, is preparing to file for bankruptcy
protection, a person with knowledge of the matter told Reuters.

The filing will occur after a Brazilian court agreed to freeze cash
held by Atvos at the request of U.S. private equity fund Lone Star,
added the source, who requested anonymity to discuss confidential
matters, according to Reuters.  The planned bankruptcy filing was
first reported by Brazilian newspaper Estado de S. Paulo, the
report relays.

In a statement sent to Reuters, Odebrecht acknowledged it was in
"complex" talks with creditors, the report discloses.

"As is known in the market, Odebrecht and its subsidiaries are in
negotiations with banks and capital markets. It's a complex
operation, but the parties are focused on a satisfactory solution
for all," the firm said, the report adds.


BANCO SOFISA: Moody's Affirms Ba2 Deposit Ratings, Outlook Stable
-----------------------------------------------------------------
Moody's Investors Service has affirmed all of Banco Sofisa S.A.'s
ratings, following the affirmation of the bank's ba2 baseline
credit assessment. Sofisa is rated Ba2 and Not Prime for long- and
short-term local currency deposits, and Ba3 and Not Prime for long-
and short-term foreign currency deposits. The deposit ratings have
a stable outlook. The outlook is stable.

RATINGS RATIONALE

In affirming Sofisa's ba2 BCA and all its ratings, Moody's
acknowledges the bank's good asset risk and profitability metrics,
which are supported by Sofisa's consistent adherence to a business
model specialized in collateralized lending to small and
medium-sized companies. Sofisa's delinquency ratios have remained
below 1.6% since 2013, owing to conservative underwriting standards
as well as maintaining diligent control on credit limits to
individual borrowers. Additionally, the bank posted compound annual
growth rate of 12% for total loans from 2014 to 2018, which
outperformed the banking system's 2% expansion and helped to
compress its asset quality metrics.

However, in the next 12 months, Sofisa's loan delinquency will
likely rise, albeit modestly, because of the ongoing increase in
competition for loans to SME clients, which is prone to reduce the
bank's loan origination. Similarly, profitability metrics will
likely be pressured downward owing to a reduction in spreads and
Brazil's slow economic activity. Despite the negative trend,
Moody's expects Sofisa's earnings and problem loans will weaken
softly because of their resilience against adverse conditions in
recent years. Consequently, they will likely remain in line with
financial profile of ba2.

The rating affirmation also reflects Sofisa's capital position,
which continues to cushion the bank against potential loan losses
in addition to reserves, even after accounting for Sofisa's sizable
dividend distribution in 2018. As a result, the bank's
capitalization, measured by Moody's preferred ratio of tangible
common-equity to risk-weighted assets (TCE/RWA) fell to 9.8% from
13.6% one year prior. Despite the reduction in equity, Moody's
expects Sofisa's recurring earnings origination will partly
replenish its regulatory total capital ratio in 2019, although
likely to a level below that reported 2017, when it stood at
18.4%.

The bank's ratings also reflect the large volume of wholesale-based
funding on the balance sheet, mostly as time deposits to corporate
and institutional investors and debt issued in the local market,
taking advantage of high domestic liquidity. In recent years,
Sofisa has continued to grow the participation of demand and time
deposits with individuals in its funding mix raised through its
digital platform SofisaDireto. This strategy has contributed to a
decline in funding concentration, a credit positive development.

The affirmation of Sofisa's Ba2 deposit ratings also reflects the
affirmation of the bank's adjusted BCA of ba2 and does not
incorporate any uplift from affiliate or government support.

WHAT COULD CHANGE THE RATING -- DOWN/UP

Sofisa's ratings are at the same level as Brazil's sovereign
rating, and therefore, upward rating movement is unlikely at this
point, unless the sovereign rating of Brazil is upgraded and
provided that Sofisa's standalone fundamentals, including its asset
quality and profitability remain strong and its capital position
improves.

Conversely, ratings could be downgraded if the sovereign rating is
downgraded, because the bank's BCA is at the same level as the
sovereign rating. There could be negative pressure on Sofisa's
ratings owing to a material deterioration in asset quality and
lower profitability coming from higher provisions and a decline in
business volume. A consistent drop in earnings origination could
hinder the bank's capacity to replenish capital, which could be
negative to ratings.

METHODOLOGY USED

The principal methodology used in these ratings was Banks published
in August 2018.

Banco Sofisa S.A., is headquartered in São Paulo, Brazil, and
reported BRL5.8 billion in assets and BRL681 million in
shareholders' equity as of 31 December 2018.

LIST OF AFFECTED RATINGS AND ASSESSMENTS

The following ratings and assessments of Banco Sofisa S.A. were
affirmed:

  - Long-term global local currency deposit rating of Ba2, stable
outlook

  - Short-term global local currency deposit rating of Not Prime

  - Long-term global foreign currency deposit rating of Ba3, stable
outlook

  - Short-term global foreign currency deposit rating of Not Prime
  
  - Long-term global local currency counterparty risk rating of
Ba1

  - Short-term global local currency counterparty risk rating of
Not Prime

  - Long-term global foreign currency counterparty risk rating of
Ba1

  - Short-term global foreign currency counterparty risk rating of
Not Prime

  - Long-term Brazilian national scale deposit rating of Aa3.br

  - Short-term Brazilian national scale deposit rating of BR-1

  - Long-term Brazilian national scale counterparty risk rating of
Aaa.br

  - Short-term Brazilian national scale counterparty risk rating of
BR-1

  - Baseline credit assessment of ba2

  - Adjusted baseline credit assessment of ba2

  - Long-term counterparty risk assessment of Ba1(cr)

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

  - Outlook, Stable


BR PROPERTIES: Fitch Alters Then Withdraws 'BB-' IDRs
-----------------------------------------------------
Fitch Ratings has affirmed BR Properties S.A.'s Long-Term Foreign
and Local Currency Issuer Default Ratings at 'BB-' and National
scale long-term rating at 'A(bra)' and revised the Rating Outlook
to Stable from Negative. Simultaneously, Fitch has withdrawn the
ratings for commercial reasons. Accordingly, Fitch will no longer
provide ratings (or analytical coverage) for BR Properties.

The revision of the Rating Outlook to Stable reflects the
expectation of more favourable operating environment that should
contribute to reduce vacancy rates and gradually improve BR
Properties' operational cash flow generation. A potential cash
inflow from the sales asset also tends to contribute to a gradual
deleveraging movement.

BR Properties' ratings are supported by the company's position as
the largest Brazilian commercial properties company, with
high-quality properties and tenant base. BR Properties'
conservative liquidity strategy, with low refinancing risk from an
extended debt amortization profile, is a key rating consideration.
The ratings are also supported by the estimated BRL8 billion market
value of properties in March 2019, covering by about 3.1x the
company's net debt, and by the expectation that coverage ratio
should strengthen due to a combination of lower interest rate in
Brazil and a gradual improvement in EBITDA generation.

KEY RATING DRIVERS

EBITDA to Gradually Recover: Fitch expects cash flow from lease
agreements to gradually improve, in case a recovery of business
environment is confirmed. The company's cash flow generation has
fallen since 2014 due to the negative economic conditions, which
pressured vacancy rates. In March 2019, the financial vacancy rate
was 18.5% and the base case scenario incorporates a gradual
reduction to more conservative levels.

Fitch expects a gradual recovery in the Sao Paulo commercial
properties market during 2019 and 2020. A lower delivery cycle,
higher net absorption, growing demand and flight to quality should
support a reduction in vacancy rates and a recovery in rental
prices. However, Fitch still has a cautious view on recovery speed.
BR Properties' activities are concentrated in Sao Paulo and Rio de
Janeiro. In Fitch's view, the important presence in Rio de Janeiro
market adds higher challenges to BR Properties, due to the strong
economic and security crisis in the state, which could result in
higher challenges for the recovery of this market.

Still High Leverage: BR Properties' leverage remains high and
deleveraging has been slower than expected due to weak economic
scenario. The company's strategy for future acquisitions and the
successful increase in EBITDA from lower vacancy rates will be key
for leverage ratios. Net leverage was about 8.5x in the LTM ended
March 2019 and Fitch projects net debt/EBITDA ratio to reduce to
about 7x during 2019. Interest coverage ratios should also slowly
improve. The company is expected to receive approximately BRL800
million from assets sales during the next few months, which will
use to reduce debt levels during 2019.

Relevant Business Position: BR Properties is the largest commercial
properties company in the fragmented Brazilian market, with
high-quality properties and tenant base. The company had an
estimated market value of properties of BRL8 billion as of March
31, 2019, with a gross leasable area of 636,414 square meters
excluding landbanks.

DERIVATION SUMMARY

BR Properties' historically strong liquidity, with low refinancing
risk from an extended debt amortization profile, is a key rating
consideration. BR Properties leverage is still high and the
expected reduction is taking longer than anticipated. The company's
interest coverage ratios and leverage are weaker than players in
the mall segment.

Fitch rates BR Properties below BR Malls Participacoes (FC IDR
BB/Stable, LC IDR BBB-/Stable, National Scale rating
AAA(bra)/Stable), Iguatemi Empresa de Shopping Centers S.A.
(AAA(bra)/Stable), Multiplan Empreendimentos Imobiliarios S.A.
(AAA(bra)/Stable), and Sonae Sierra Brasil S.A. (AA+(bra)/Stable).
The rating differences are due to BR Properties' more volatile cash
flow generation capacity from office buildings compared to more
resilience EBITDA generation of the shopping malls operators. BR
Properties' vacancy rates are higher than mall operators, as demand
for commercial properties is directly related to Brazil's
macroeconomic conditions.

KEY ASSUMPTIONS

Key Assumptions do not apply as the ratings have been withdrawn.

RATING SENSITIVITIES

Rating Sensitivities do not apply as the ratings have been
withdrawn.

LIQUIDITY

Solid Liquidity: BR Properties' historically strong liquidity, with
low refinancing risk from an extended debt amortization profile, is
factored into the ratings. As of March 31, 2019, total cash and
marketable securities was BRL684 million and total debt was BRL3.3
billion. The company's cash covered its short term debt of BRL393
million by 1.7x as of March 31, 2019. Cash position reduced from
BRL1.5 billion reported in December 2018, as the company pre-paid
its USD185 million perpetual notes. BR Properties should receive
approximately BRL800 million from assets sales during the next few
months and is in the process to acquire one office building in Sao
Paulo for BRL596 million.

FULL LIST OF RATING ACTIONS

Fitch has affirmed and withdrawn the following ratings:

BR Properties S.A.

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

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

  -- Long-term national scale rating at 'A(bra)'.

The Rating Outlook for the corporate ratings was revised to Stable,
from Negative.


COMPANHIA DE GAS: Fitch Affirms 'BB' Foreign Currency IDR
---------------------------------------------------------
Fitch Ratings has affirmed Companhia de Gas de Sao Paulo - COMGAS'
Long-Term Foreign Currency Issuer Default Rating at 'BB', Local
Currency IDR at 'BBB-' and National Scale Long-Term Rating at
'AAA(bra)'. The Ratings Outlook is Stable.

Comgas' ratings reflect the solid fundamentals of its natural gas
distribution business and historically robust financial profile,
supported by reduced leverage, strong liquidity profile and
significant cash flow from operations. Comgas' business profile
benefits from its operations in the state of Sao Paulo, Brazil's
most important state economically, and from the company's long-term
concession agreement, which comprises clauses with non-manageable
cost pass-through that protect its cash flow generation.

Comgas' activities offer favourable growth prospects in the medium
and long term, given the expectation of expansion of its gas
distribution network and customer base given its still low
penetration. Fitch believes that this energy source should continue
to be competitive compared with alternatives, which adds to billed
volumes increase. The agency assumes the company will be able to
continuously recontract its gas supply needs before existing
agreements expire, with potential contractual changes not
materially affecting the company's cash flow generation capacity.

The company's FC IDR is limited by the Brazilian Country Ceiling of
'BB'. The Stable Outlook for the FC IDR is aligned with the Outlook
for the sovereign rating, while the LC IDR and the National Scale
Rating reflects Fitch's expectation that the natural gas
distribution industry will continue to preserve strong fundamentals
and that Comgas will sustain its robust credit metrics, with net
adjusted leverage below 2.0x over the next three years. Fitch also
incorporated no major changes in the company's credit profile due
to regulatory issues.

KEY RATING DRIVERS

Low to Moderate Business Risk: Comgas is the largest natural gas
distribution company in Brazil in terms of volume billed, but is
subject to natural gas consumption volatility within the industrial
segment, which represents around 55% of its gross profit. This
segment's performance is highly linked with GDP and results in
moderate cash flow variation. Nevertheless, Comgas' competitive
manageable cost structure and continued efforts to expand its
residential and commercial client base, with higher profitability,
mitigates the impact of industrial segment volatility. In addition,
natural gas purchase, which is the main cost, is considered as
nonmanageable and is passed-through to tariffs based on contract
clauses. Gas demand is influenced GDP performance and price
competitiveness, although switching costs in some industrial
segments represent a barrier to alternative sources of energy.

Manageable Supply Risk: Fitch assumes no gas supply disruptions for
Comgas within the next three years as the company has successfully
renewed its supply contract with Petrobras until 2021 despite
single supplier concentration risk remains, which is an industry
common feature in Brazil. Positively, Comgas has the option to
renew its supply agreement until 2027 at its discretion, which
mitigates medium term supply risks. The expectation of gas
production increase in the country and divestments of Petrobras on
gas transportation and production assets should allow for
competition on the natural gas chain, increase competitiveness for
the natural gas and stimulate demand. Comgas' region of activity
benefits from diverse gas duct connections to its distribution
network, which favors pursuing alternative gas sources.

Sound Cash Generation: Fitch estimates Comgas will maintain sound
normalized EBITDA during the next three years, including BRL2.1
billion in 2019. EBITDA is based on expectation of adequate tariff
increases, maintenance of operating and cost efficiency and
expansion of its client base, with annual volumes billed annual
average growth of 1.5% from 2019 to 2021. Normalized EBITDA is
adjusted for higher or lower nonmanageable costs than those
contemplated in the tariff. Under the concession agreement, these
differences are incorporated into the next tariff adjustment
process. According to IFRS, the company's EBITDA was BRL1.5 billion
in the LTM ended March 31, 2019, as per Fitch's methodology.

FCF Pressured by Dividends and Capex: Fitch estimates strong
dividends distribution and capex increase during 2019-2021 will
make Comgas FCF negative at around BRL674 million per year on
average. Fitch estimates strong pressure for Comgas to maximize
dividends distribution to support additional debt at shareholder
level. During the next three years, Fitch projects annual average
dividend payments of BRL1.3 billion and investments of BRL800
million. The expectation of the company's robust CFFO generation at
BRL1.3 billion-BRL1.4 billion during this period should partially
alleviate FCF pressure.

Low Leverage to Remain: Fitch expects Comgas' net leverage to
remain at a conservative level in the coming years, despite of
increasing capex and strong dividends distributions. According to
the base case scenario, net debt-to-EBITDA ratio will not exceed
2.0x, with 1.0x in 2019. In the LTM ended on March 31, 2019, total
debt/EBITDA and net debt/EBITDA were 2.2x and 1.0x, respectively,
according to Fitch's methodology.

Part of the Cosan Group: Comgas' ratings consider that the company
is part of the Cosan group, whose main shareholder is Cosan S.A.
Industria e Comercio (FC IDR BB; LC IDR BB+; and National Scale
Rating AAA(bra); all with a Stable Outlook). Despite the higher
debt of its main shareholder to fund tender offer on 1Q19 to
increase Comgas ownership - now at 95% from 80%, the group's access
to the company's cash is limited to distribution of dividends,
given its concessionaire status. Fitch estimates robust dividends
distribution from Comgas to support higher debt.

DERIVATION SUMMARY

Comgas' credit profile favorably compares with Companhia de
Saneamento Basico do Estado de Sao Paulo (Sabesp; LC and FC IDRs
BB/Stable), a water/wastewater utility company that also operates
in the state of Sao Paulo and presents significant unhedged FX debt
exposure, political risk and a higher level of CFFO committed to
capex, given its more capital-intensive operations, despite both
companies presenting sound capital structure and liquidity profile.
In the case of Transmissora Alianca de Energia Eletrica S.A.
(Taesa; LC IDR BBB-/Stable and FC IDR BB/Stable), a power
transmission company in Brazil, Comgas' lower leverage is
counterbalanced by Taesa's lower regulatory and business risks,
given no volumetric exposure leading to more predictable CFFO.

The Colombian Promigas S.A. E.S.P (Promigas; LC and FC IDRs
BBB-/Stable) presents strong business position on its region of
operation and predictable cash flow generation although with gross
leverage level around 4.0x-4.5x, which is higher than Comgas'
ratios (around 2.0x-2.5x). Promigas business profile, however,
benefits from diversification within natural gas transportation and
distribution, compared to Comgas that only distributes gas and can
present some demand volatility. Promigas's IDRs also incorporates
its operation in a country with better operating environment than
Comgas.

KEY ASSUMPTIONS

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

  -- A 1.5% volume increase (excluding thermo power generation
     segment) on average from 2019 to 2021;

  -- Payout dividend ratio on average of 121% of distributable
     net profit;

  -- Annual average capex of BRL800 million during 2019-2021;

  -- Contribution margin increase of 5.5% in 2019 and 4.0%
     thereafter.

RATING SENSITIVITIES

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

  -- Brazil's Country Ceiling upgrade would lead to a positive
     rating action on Comgas' FC IDR.

  -- Improvement of the company's client base segment
     diversification, combined with an upgrade of Brazil's
     sovereign rating, could result in an upgrade of the
     company's LC IDR.

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

  -- Expectation of a sustainable increase in net leverage
     measured by net debt/EBITDA to above 3.0x;

  -- Fitch's perception of regulatory and/or gas supply
     risk deterioration.

  -- A downgrade of the sovereign rating would trigger a downgrade
     for the FC IDR.

LIQUIDITY

Robust Liquidity Position: Comgas' credit profile benefits from
robust liquidity and a lengthened debt maturity schedule. The
company also has proven track record in accessing the local debt
and capital markets with suitable cost of funding during the last
five years, which strengthens its financial flexibility and
mitigates the expected negative FCF in the coming years. The
company's total cash balance at March 31, 2019 of BRL1.8 billion
represented strong coverage of its short-term debt of BRL593
million by 3.0x. Comgas' total debt of BRL3.3 billion, according to
Fitch's methodology, presented lengthened amortization schedule and
consisted mainly of unsecured debenture issuances (BRL2.4 billion)
and Banco Nacional de Desenvolvimento Economico e Social (BNDES)
debt (BRL572 million). The debentures coupon is inflation-linked,
which suits well with its CFFO dynamics, given that its tariff and
fee adjustments formula also is linked with inflation rates.

FULL LIST OF RATING ACTIONS

Fitch has affirmed Comgas' ratings as follows:

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

  -- Long-Term Local Currency IDR at 'BBB-';

  -- National Long-Term Rating at 'AAA(bra)';

  -- BRL540 million 3rd debentures issuance National Long-Term
Rating at 'AAA(bra)';

  -- BRL592 million 4th debentures issuance National Long-Term
Rating at 'AAA(bra)';

  -- BRL500 million 5th debentures issuance National Long-Term
Rating at 'AAA(bra)';

  -- BRL400 million 6th debentures issuance National Long-Term
Rating at 'AAA(bra)';

  -- BRL215 million 7th debentures issuance National Long-Term
Rating at 'AAA(bra)'.

The corporate Rating Outlook is Stable.


COMPANHIA SIDERURGICA: Fitch Hikes LT IDRs to B, Outlook Positive
-----------------------------------------------------------------
Fitch Ratings has upgraded Companhia Siderurgica Nacional's
Long-Term Foreign and Local Currency Issuer Default Ratings to 'B'
from 'B-', its National Scale rating to 'BBB-(bra)' from 'BB-(bra)'
and senior unsecured notes to 'B'/'RR4' from 'B-'/'RR4'. The Rating
Outlook has been revised to Positive from Stable.

CSN's upgrade is based on its substantial reduction of immediate
term refinancing risk and significantly improved operating
environment in its mining business that has increased its financial
flexibility. CSN's 'B' rating continues to reflect the company's
need to divert its growing FCF generation, and/or proceeds from
additional asset sales, to reduce gross debt and improve the
sustainability of its capital structure through future troughs in
the commodity cycle. Recently, CSN successfully refinanced a
significant portion of its near term debts to extend its maturity
profile, and reduce refinancing risk while maintaining sufficient
liquidity. The company delivered on the sale of Companhia
Siderurgica Nacional, LLC (LLC), for USD400 million during May 2018
and the Glencore prepayment agreement for the delivery of 20
million metric tons of iron ore over the next five years in order
to bring forward future sales. The company's leverage profile
remains vulnerable to a decline in iron ore prices as the industry
outlook remains challenging over the long term, coupled with
increased capex outflows, and potential future dividends to fund
obligations at the shareholder level.

CSN's Positive Outlook reflects the company's continued
deleveraging trajectory as a result of favorable iron ore industry
fundamentals following supply disruptions from the world's largest
seaborne iron ore producer, Vale S.A. (BBB-/Rating Watch Negative),
after its tailings dam disaster in January 2019. Sustained higher
iron ore prices of above USD80 per metric ton over the next 12-18
months will provide CSN an unexpected cash flow windfall to improve
credit metrics. The Positive Outlook also factors in encouraging
operational tailwinds and scope for potential further asset sales,
such as the sale of its European steel business and a prospective
iron ore streaming transaction that would collectively generate
around USD1.0 billion. These measures, combined with the reduction
of its short-term refinancing risks and assuaged liquidity
pressures, provide CSN with additional headroom to reduce its heavy
gross debt burden.

KEY RATING DRIVERS

Lower Short-Term Refinancing Risks: CSN recently refinanced its
short-term debt and bolstered its liquidity position, providing
relief over the next 24 months. The company successfully reduced
its short-term refinancing risks through the issuance of USD1.0
billion of new bonds in second-quarter 2019 (2Q19; USD400 million
retap of 2019's due 2023 and new issuance of USD600 million due
2026), which was used to repay its 2019 bonds and a relevant
portion of its 2020 bonds with around USD430 million remaining. In
addition, CSN has refinanced 90% of its local bank debt during
2018, with its remaining debt with Bradesco to be refinanced over
the coming quarters. CSN's iron ore prepayment transaction of
USD500 million bolstered the company's liquidity position; Fitch
adjusts for this transaction as a debt. Annual debt maturities
range between BRL3 billion to BRL4 billion from 2020 to 2022.

Declining Leverage: Fitch's base case assumption indicates total
adjusted debt to operating EBITDA declining to around 4.0x and
total adjusted net debt to operating EBITDA to fall to around 3.0x
in 2019, assuming iron ore prices average USD90 per ton. This
excludes any further asset sales that would further deleverage the
business. Sustained high iron ore prices over the next 12-18 months
allow scope for continued improvement in the company's credit
metrics through gross debt reduction. Should CSN execute on its
potential iron ore streaming transaction and the sale of its German
steel asset, net leverage would decline to below 3.0x based on
Fitch's assumptions and could lead to a ratings upgrade should
these funds also be used to reduce gross debt. The company's
capital structure remains highly leveraged in Fitch's view with a
corresponding high interest burden weakening cash flow during
prolonged periods of low prices and volumes. Further gross debt
reduction is paramount to repairing its balance sheet through the
cycle and allowing for future rating upgrades.

Improvement in Sector Fundamentals: Higher global iron ore and
steel prices correspond with an upward trend in domestic steel
prices, and a solid recovery in sales volumes has benefited CSN's
operating cash flow generation. Fitch projects that CSN's local
steel sales volumes will increase by 9% in 2019, after growing 17%
in 2018, mostly reflecting the strong rebound in automobile
production in Brazil. CSN's steel margins were negatively affected
in 1Q19 due to cost inflation and a scheduled maintenance at its
steel plant. The planned maintenance will be nonrecurring going
forward and the division is expected to benefit from recent price
increases during the second half of 2019. Fitch expects price
increases of approximately 6%-8% during 2019, excluding a 25%
increase to automakers. Risks to higher domestic steel prices are
an appreciation in the Brazilian real and an adverse change to
steel import tariffs in Brazil, which currently are around 12%.

Cash Flow Generation Recovery: CSN's sustained cash flow generation
recovery relies on increasing steel sales, the ability to continue
passing along price increases in the domestic steel segment,
manageable coal costs and sustained iron ore prices above USD60 per
metric ton. CSN's cash flow generation has also benefited from its
investments in its iron ore division, which has allowed the company
to receive a $3 per metric ton premium for quality since the second
half of 2018 with further investments expected to develop a higher
proportion of premium ore products. Fitch's base case scenario
projects CSN's EBITDA at approximately BRL7.6 billion, considering
a revised iron ore price of USD90 per metric ton for 2019 and
EBITDA of BRL8.2 billion considering an iron ore price of USD80 per
metric ton for 2020 among other factors such as continued
mid/high-single-digit growth in steel volumes.

Capital Allocation to Drive FCF Trend: Fitch expects FCF to remain
positive in 2019 and 2020 supported by strong iron ore prices and
improving domestic steel volumes in Brazil. CSN plans to pay around
BRL900 million of dividends in 2019 and higher business cash
outflows for capex will be likely under improved market conditions.
Working capital requirements in 1Q19 drove down FCF to negative,
but this is expected to revert over the coming quarters. The
company's high interest burden remains an issue and furthers the
need for the company to reduce its gross debt balance. Continued
recovery in operating performance will allow FCF to remain positive
absent any significant extraordinary dividends.

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


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

DERIVATION SUMMARY

CSN's 'B'/Outlook Positive rating reflects its improving credit
metrics under favorable iron ore price conditions coupled with the
execution of multiple debt refinancing and asset sales in order to
improve its capital structure. CSN's capital structure over the
long term remains a concern and the company will need to divert
growing cash flow generation and/or continue asset sales in order
to reduce its high debt burden. CSN's more integrated business
profile and diversified portfolio of assets compare well with those
of Usinas Siderurgicas de Minas Gerais S.A. (Usiminas;
B+/Positive). Both issuers are highly exposed to the local steel
industry in Brazil. CSN and Usiminas show much weaker business
position compared with the other Brazilian steel producer Gerdau
S.A (Gerdau; BBB-/Stable), which has a diversified geographical
footprint of operations with important operating cash flow
generated from its assets abroad, mainly in the U.S., and flexible
business model (mini-mills), which allow it to better withstand
economic and commodities cycles.

From a financial risk perspective, Usiminas and CSN are far weaker
than Gerdau, which has been able to maintain positive FCF
generation, strong liquidity and no refinancing risks over the last
few years. CSN has been proactive in reducing its short-term
refinancing risk following the refinancing of its 2019 notes and
the majority of its 2020's. Gross debt levels at CSN remain high
and the company will need to improve its capital structure through
asset sales in the medium term. In contrast, after concluding its
debt restructuring, Usiminas has a more manageable debt schedule
amortization and balanced capital structure.

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

KEY ASSUMPTIONS

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

  -- High single digit increase in domestic steel volumes sold
during 2019;

  -- Total Steel sales around 5.0 million tons in 2019;

  -- Iron Ore volumes of over 30 million metric tons in 2019;

  -- Average iron ore price of USD90 per ton during 2019 and USD80
per ton in 2020, in order to reflect the supply gap in the seaborne
iron ore market, which will likely not resolve until after 2020;

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

KEY RECOVERY RATING ASSUMPTIONS

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

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

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

Fitch applies a waterfall analysis to the post-default enterprise
value (EV) based on the relative claims of the debt in the capital
structure. Fitch's debt waterfall assumptions take into account
debt at March 31, 2019. The waterfall results in a 42%/'RR4'
Recovery Rating for senior unsecured debt. Therefore, the senior
unsecured notes due 2020, 2023, and 2026, and perpetual notes are
'B'/'RR4'.

RATING SENSITIVITIES

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

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

  -- Sustained adjusted total debt/EBITDA ratio below 4.0x and/or
adjusted net debt/EBITDA ratio below 3.0x;

  -- FFO fixed-charge coverage of 5.0x or above.

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

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

  -- Sustained adjusted total debt-/-EBITDA ratio above 5.5x and/or
adjusted net debt/EBITDA ratio above 5.0x;

  -- FFO fixed-charge coverage below 4.0x;

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

LIQUIDITY

Inclusive of the cash received from the iron ore payment agreement
with Glencore on March 29, 2019, liquidity was BRL5.0 billion
compared with short-term debt of around BRL3.3 billion. CSN's
overall adjusted debt burden remains high at BRL30 billion as of
March 31, 2019, which Fitch includes the USD500 million iron ore
prepayment agreement. Following the issuance of its benchmark sized
bond and refinancing its 2019 and 2020 notes, CSN's maturity ladder
extension will provide the company with an additional cushion to
maintain liquidity and service its obligations. CSN's debt
primarily consists of prepayment export financings (19%), local
bank loans (31%), senior notes (23%) and perpetual bonds (13%). The
leverage at the shareholder level, which is believed to be high, is
a concern for Fitch.

FULL LIST OF RATING ACTIONS

Fitch has upgraded the following ratings:

  -- Long-Term Foreign and Local Currency IDRs to 'B' from 'B-';

  -- National Long-Term rating to 'BBB-(bra)' from 'BB-(bra)';

  -- CSN Islands XI Corp. senior unsecured Long-Term rating
guaranteed by CSN to 'B'/'RR4' from 'B-'/'RR4';

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

  -- CSN Resources S.A. senior unsecured U.S. dollars Note
Long-Term rating guaranteed by CSN to 'B'/'RR4' from 'B-'/'RR4'.

The Rating Outlook has been revised to Positive from Stable.


OI SA: Fitch Affirms LongTerm IDRs at 'B-', Outlook Stable
----------------------------------------------------------
Fitch Ratings has affirmed Oi S.A.'s Long-Term Foreign and Local
Currency Issuer Default Ratings at 'B-', the National Long-Term
Rating at 'BB-(bra)', and the 2025 notes rating at 'B-'/'RR4'. The
Rating Outlook is Stable.

The ratings reflect improvements to Oi's financial profile after
the company's debt restructuring. The ratings also reflect Oi's
weak operating performance, challenged competitive position, and
uncertain turnaround prospects. The 2025 notes rating is capped by
Fitch's Country-Specific Treatment of Recovery Ratings at 'RR4',
equalizing the ratings with the IDR.

Oi operates in a sector that is capital intensive and features
rapid technological change. Fitch expects the Brazilian
telecommunications market will remain competitive amid the
country's gradual economic recovery.

KEY RATING DRIVERS

Weak Operating Profile: Oi's competitors made substantial advances
while the company's operating performance deteriorated, before and
during its judicial reorganization. The company lost market share,
most critically in post-paid mobile and residential broadband.
Ultimately, Oi's turnaround prospects hinge on its ability to
convert network investment into subscribers before amortizations of
the restructured principal (plus capitalized interest) begin in
2023. While the emergence of the Brazilian economy from recession
will be positive for consumer and business spending, Oi's attempts
to regain market share may precipitate price competition, limiting
prospects for material growth in the medium term.

Mixed Mobile Results: The decline in Oi's overall mobile numbers
belies encouraging trends in both the post-paid and prepaid
subscriber bases. Prepaid subscriber losses have slowed for the
company compared to the market as a whole, resulting in an increase
in market share. In post-paid, the company has returned to growth
with an increase in RGUs of approximately 20% YoY. Both of these
have coincided with increases in consumer mobile ARPU. Similarly,
business mobile continues to grow at an accelerating rate of 17%
YoY. The rebalancing of the company's customer mix to the point
where post-paid gains offset prepaid losses should improve
profitability and cash flow stability in the medium term.

Challenging Residential Prospects: As of 1Q19, the company's
broadband market share is 19%, down from 25% in 2015, having lost
subscribers in a growing market to both larger integrated operators
and smaller internet providers. The company's aggressive fiber roll
out through existing fixed-line infrastructure should be an
advantage in the medium term, although competitor investments in
fiber will remain high. Fitch expects broadband will be the main
driver of fixed-line growth in Brazil, given penetration rates, as
double digit declines in fixed-line telephony will continue to
pressure revenues. Positively, Pay TV has grown consistently,
though it accounts for only 11% of the company's residential RGUs.


Declining Revenue and Profitability: In 2018, the company's
revenues and adjusted EBITDA fell 7.3%, and 6.3% respectively.
While the company has been able to maintain adjusted EBITDA margins
through various efficiency measures, the resumption of top-line
growth is essential to debt serviceability, as the company's
restructured debt begins amortizing in 2023, along with interest
payments in 2022. Fitch expects revenue to decline in 2019, as
growth in post-paid and fiber broadband is insufficient to fully
offset declines elsewhere, before stabilizing in 2020 and returning
to growth.

Improved Financial Profile: The elimination of the Oi's debt
overhang and the BRL4.0 billion equity raise will enable it to make
sorely needed investments in its broadband and mobile network.
Furthermore, the recent court ruling in the company's favour
regarding its African assets should yield dividends of around
BRL2.6 billion. Divestitures of non-core assets and tower sales
would provide additional financial flexibility, which is
constrained by Oi's investment requirements. Fitch expects leverage
to rise as capitalized interest is added to principal and operating
income remains pressured.

Capex Dampens Cash Flows: Oi will be FCF negative for the
foreseeable future. The company's capex are expected to be around
BRL20.0 billion over the next three years, far more than cash flow
from operations, which will benefit from low cash interest and tax
payments. Fitch does not expect any dividends in the foreseeable
future. As network investments are a key pillar in Oi's turnaround,
the company has limited room to reduce capex. Following the initial
heavy investment schedule, capex is should moderate in the long
term.

DERIVATION SUMMARY

Oi's ratings reflect its restructured financial profile and the
still-uncertain outlook for its turnaround strategy. While the
company's financial profile has improved since its debt
restructuring and equity raise, Oi's financial flexibility is
limited by its network upgrade requirements. The company will need
to reverse subscriber attrition and monetize network investments
before debt amortizations resume.

Oi's ratings are more a function of its business profile than other
speculative grade issuers such as Cable & Wireless (BB-/Stable),
whose leverage is offset by its stable market position. Digicel
Group Limited (B-/Stable) is similar, in that its recent debt
restructuring has given the company additional time to improve
operational performance. When compared with U.S. peers, Oi's status
as the number four mobile player is similar to Sprint Corporation's
(B+/Rating Watch Positive), in that they lack scale to challenge
the leaders.

The Recovery Ratings for Oi's debt is capped at 'RR4' by Brazil's
treatment in Fitch's Country-Specific Recovery Ratings.

KEY ASSUMPTIONS

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

  -- Fixed Line: Overall RGUs to decline by low single digits, as
growth in pay TV and broadband subs are insufficient to offset
fixed telephony losses; ARPUs to steadily increase as customer mix
shifts.

  -- Mobile: Overall RGUs to decline by low single digits, as
growth in post-paid subs is insufficient to offset prepaid losses;
ARPUs to steadily increase as customer mix shifts.

  -- Overall revenues to decline by approximately 5% in 2019, and
stabilize by the end of 2020, before resuming low single digit
growth.

  -- EBITDA margins to remain around 25%-26%.

  -- Capex of approximately BRL20.0 billion over the next three
years.

  -- BRL2.6 billion in dividends from African operations.

  -- Stable macroeconomic conditions in Brazil (e.g. FX, interest
rate, and inflation).

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

Fitch assumes a going-concern EBITDA of approximately BRL5.1
billion, and an EV multiple of 5x. The going concern EBITDA
represents a 12% discount to 2018 EBITDA and derives from Fitch's
stress case for Oi, wherein the company is unable to stabilize
revenues due to continued subscriber attrition and/or ARPU
contraction.

Fitch calculates recovery prospects for the senior unsecured notes
in line with an 'RR2', which would allow for a ratings uplift from
Oi's IDR. The country-specific treatment of Recovery Rating
criteria constrains the upward notching of IDRs to reflect recovery
expectations for corporate finance entities based on the impact of
country-specific factors. Fitch applies caps to instrument ratings
for a given jurisdiction. These reflect the agency's view that
average recoveries are likely to be lower in regimes that are
debtor friendly and/or have weak enforceability and higher in
regimes that are creditor-friendly and/or have strong
enforceability. Countries are ranked according to their average
scores and put into one of four groups based on creditor
friendliness and respect for rule of law. Brazil is ranked in Group
D, and therefore issuers in Brazil can have Recovery Ratings of up
to 'RR4'.

RATING SENSITIVITIES

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

  -- Revenue stabilization and growth, driven by sustained
increases in subscribers as the company regains market share and
monetizes its investments in mobile data and fiber broadband
networks.
Developments That May, Individually or Collectively, Lead to
Negative Rating Action

  -- Continued deterioration in operating performance, driven by
subscriber losses in mobile and broadband, which results in
continued revenue and EBITDA contraction decline for the next 18
months.

  -- Failure to achieve additional financing from suppliers, banks,
or asset sales that would allow it to implement growth investment
during next two years.

LIQUIDITY

Improved Liquidity, Low Flexibility: The extension to debt
repayments, along with the BRL4.0 billion capital increase, have
improved Oi's liquidity situation in the near term. From the
ratification of the Judicial Restructuring Plan (JRP), the company
has interest grace periods of four to 24 years on interest payments
and five to 20 years on its restructured debts (i.e. not including
the 2025 senior unsecured PIK toggle notes). However, the company's
capital intensity in the next three years constrains financial
flexibility significantly, and FCF is expected to be negative for
the foreseeable future.

Arbitration proceedings pertaining to the company's African assets
have been favorable, resulting in awards of approximately USD653
million, which should further support the company's ambitious
capital deployment program. Per the JRP, dividends in the coming
years will be minimal.

Per Fitch methodology, leverage ratios are calculated based on
principal outstanding rather than the fair value or market value of
debt. As of March 31, 2018, Oi reports fair value of debt of
approximately BRL16.4 billion, to which Fitch reverses out the fair
value adjustment of BRL13.7 billion, resulting in a total debt of
BRL30.1 billion.

FULL LIST OF RATING ACTIONS

Fitch has affirmed the following ratings:
Oi S.A.

  -- Long-Term Foreign Currency Issuer Default Rating (IDR)
     at 'B-'; Outlook Stable;

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

  -- National Rating at 'BB-(bra)'; Outlook Stable;

  -- 2025 unsecured notes rating at 'B-'/'RR4'.




=============
E C U A D O R
=============

ECUADOR: To Ease Housing Shortage With $200 Million IDB Support
---------------------------------------------------------------
The Inter-American Development Bank has approved a $200 million
conditional credit line designed to ease a housing shortage in
Ecuador, with a comprehensive, sustainable and inclusive approach
in the framework of the "Homes for Everyone Sectorial Plan." The
credit line will finance an initial loan of $93.9 [sic] to identify
housing solutions for low-income families.

The funding will aim to boost poor and vulnerable families' chances
of obtaining affordable, sustainable and universally accessible
housing and strengthen the Ecuadoran government's ability to
develop and implement long-term housing policies. The first
disbursement is designed to reduce a quantitative housing shortage
among urban and rural households at the two lowest income quintiles
of the population. It will give priority to families in which women
are the main bread earners and those with people who are disabled,
optimizing the management capability of the Ministry of Urban
Development and Housing.

As for the impact of the program, achievement of the goals of the
first loan will be measured with indicators that reflect
improvement in health in rural areas, a drop in time spent on
unpaid work among vulnerable families, a reduction in utility
bills, and savings in usage of water, energy and construction
materials.

For more than 20 years the IDB has been Ecuador's main multilateral
partner in the structuring and financing of public housing
programs. This new campaign by the IDB and Ecuador therefore
follows up on work done under the program known as "Homes for
Everyone," the goal of which is to ensure that 95 percent of
vulnerable families in the country have a decent place in which to
live.

It is worth noting that more than two million people in Ecuador
suffer from a housing shortage, of which 1.2 million live in urban
areas (21 percent with a quantitative shortage) and 850,000 in
rural areas  (38 percent with a quantitative shortage).

The money for this line of credit will come from IDB ordinary
capital. The French Development Agency will contribute parallel
co-financing of $80 million toward attainment of the goals of the
first loan.




=============
J A M A I C A
=============

JAMAICA: Realtors' Association Calls for More High End Housing
--------------------------------------------------------------
RJR News reports that Andrew James, President of the Realtors'
Association of Jamaica, is calling for the construction of more
high end accommodations in Jamaica.

The call comes amid criticisms that new housing developments are
too expensive for the average Jamaican to afford, according to RJR
News.

Mr. James argues that housing developments in Jamaica are too cheap
and largely undervalued compared to other territories in the
region, the report adds.

As reported in the Troubled Company Reporter-Latin America on Sept.
27, 2018, S&P Global Ratings revised its outlook on Jamaica to
positive from stable. At the same time, S&P  affirmed its 'B'
long-and short-term foreign and local currency sovereign credit
ratings, and its 'B+' transfer and convertibility assessment on the
country.




=================
V E N E Z U E L A
=================

PETROLEOS DE VENEZUELA: Businessman Pleads Guilty in Houston Court
------------------------------------------------------------------
Marissa Luck at Houston Chronicle reports that a Miami man pleaded
guilty in a federal court in Houston for his role in a foreign
bribery scheme involving Venezuelan state-owned oil company PDSVA
and its Houston-based subsidiary Citgo Petroleum, the U.S.
Department of Justice disclosed.

Jose Manuel Gonzalez Testino, 48, a dual citizen of the U.S. and
Venezuela, pleaded guilty to one count of conspiracy to violate the
Foreign Corrupt Practices Act, one count of violating the Foreign
Corrupt Practices Act and one count of failing to report foreign
bank accounts, according to the Justice Department, according to
Houston Chronicle.

The report notes that Gonzalez is the latest person to plead guilty
as part of a bigger U.S. government investigation into bribery at
PDVSA.  Including Gonzalez, the Justice Department and U.S.
Attorney Ryan K. Patrick of the Southern District of Texas' office
has charged 21 people in connection to the investigation, 16 of
whom have entered guilty, according to the Justice Department, the
report relays.  Charges against the other five defendants remain
outstanding.

As the Chronicle previously reported, the Houston federal court has
become one of the busiest in the nation over the past decade for
cases involving foreign bribery in large part because of the
concentration of energy companies here with global operations, the
report discloses.  Houston accounted for seven, or about one-fourth
of the 26 cases brought by the Justice Department in 2016 under the
Foreign Corrupt Practices Act, the report relays.

In this latest case, Gonzalez allegedly conspired to bribe PDVSA
and Citgo officials to secure contracts for several companies he
controlled from about 2012 until at least 2018, the department
said, the report says.

The Justice Department said Gonzalez admitted to paying at least
$629,000 in bribes to Cesar Rincon David Godoy who formerly managed
PDVSA's procurement subsidiary Bariven, the report relays.
Gonzalez also apparently admitted he and his co-conspirators paid
bribes to Alfonso Eliezer Gravina Munoz, a former official at the
Houston-based subsidiary PDVSA Services Inc, the Justice Department
said, the report notes.

In exchange for these payments, Rincon and Gravina directed PDVSA
contracts to Gonzalez's companies, gave Gonzalez access to inside
information on PDVSA's procurement process and give priority to his
companies over other vendors, the Justice Department said, the
report relays.

The report notes that Gonzalez's alleged bribery also extended into
a special projects group within Citgo that procured goods and
services on behalf of its parent company PDVSA.  Gonzalez admitted
he and his co-conspirators paid at least four Citgo officials in
the special projects group and provided gifts and other things of
value to a senior Citgo executive, the report says.  The Justice
Department didn't name who these officials were, the report notes.

In exchange, Gonzalez said those Citgo officials also helped his
companies obtain inside information on PDVSA's bidding process,
assisted Gonzalez in winning contracts and helped to hide the fact
that Gonzalez controlled multiple companies on certain bidding
panels for PDVSA projects, according to the Justice Department, the
report relays.

Gonzalez, who also admitted he failed to file a foreign bank
account report in 2017, was arrested last July at the Miami
International Airport, the federal government said, the report
adds.  His sentencing is scheduled for Aug. 28.

As reported in the Troubled Company Reporter-Latin America on Aug.
24, 2018, S&P Global Ratings affirmed its 'SD' global scale issuer
credit rating and 'D' issue-level ratings on Petroleos de Venezuela
S.A. (PDVSA).



                           *********


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

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

Copyright 2019.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
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