/raid1/www/Hosts/bankrupt/TCRLA_Public/190613.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                 L A T I N   A M E R I C A

          Thursday, June 13, 2019, Vol. 20, No. 118

                           Headlines



A N T I G U A   A N D   B A R B U D A

LIAT: Barbados Gov't. Discloses Sale of Airline Shares


A R G E N T I N A

BANCO HIPOTECARIO: Moody's Alters Outlook on B2 Rating to Negative
BANCO HIPOTECARIO: Moody's Assigns B2 GS Local Curr. Deposit Rating


B R A Z I L

INVEPAR SA: S&P Affirms 'CCC+' Global Scale ICR, Off Watch Negative


C O L O M B I A

CANACOL ENERGY: Fitch Affirms BB- LongTerm Issuer Default Ratings


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Business Sector Deny Stonewalling Wage Hike
DOMINICAN REPUBLIC: IMF Says Economy Will Grow Despite Risks
DOMINICAN REPUBLIC: Plagued by Insufficient Power Plants, CDEEE Say


J A M A I C A

JAMAICA: Labor Market Information System Being Revamped


M E X I C O

BBVA BANCOMER: Fitch Cuts LT Hybrid Securities Notes Rating to BB+
PETROLEOS MEXICANOS: KPMG Cardenas Raises Going Concern Doubt


P U E R T O   R I C O

CLOUD I Q LLC: Hires McConnell Valdes as Puerto Rico Counsel
INTEGRAND ASSURANCE: A.M. Best Changes Issuer Credit Rating to 'e'
PUERTO RICO: Committee Says Changes to Members' Claims Minor

                           - - - - -


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

LIAT: Barbados Gov't. Discloses Sale of Airline Shares
------------------------------------------------------
The New York Carib News reports that the Barbados government
Tuesday night formally announced plans to sell its shares in the
cash strapped regional airline, LIAT, but insisted that it was
committed to regional transportation and would continue to hold
minimum shares in the Antigua-based carrier

Barbados along with Antigua and Barbuda, Dominica, Grenada and St
Vincent and the Grenadines are the main shareholders of LIAT that
employs over 600 people and operates 491 flights weekly across 15
destinations.

Barbados Prime Minister Mia Mottley in a statement to Parliament
confirmed reports that Antigua and Barbuda would be seeking to
replace her country as the largest shareholder government by
seeking to acquire the shares Bridgetown would be outing up for
sale, The NY CaribNews relates.

She said that Attorney General Dale Marshall would lead the
negotiations, the report relays.  

Antigua and Barbuda Prime Minister Gaston Browne said he had
received communication from Barbados indicating that Bridgetown was
willing to sell all but 10 per cent of its shares in the airline,
the report notes.  Antigua and Barbuda currently holds 34 percent
of the shares and if it acquires Bridgetown's shares, would have 81
percent of the airline, the report relays.  

The government in a statement had said that "an offer was made for
Antigua and Barbuda to acquire the LIAT shares owned by Barbados,
through a take-over of the liability of Barbados to the Caribbean
Development Bank," the report relays.  

The Antigua and Barbuda government chief of staff, Lionel Max
Hurst, said that "there are many jobs here in Antigua and Barbuda
connected to LIAT and we intend to ensure that those jobs are not
lost," 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,
chairman is Jean Holder, and chief financial officer is Rojer
Inglis.

Dr. Ralph Gonsalves, prime minister of St. Vincent & the
Grenadines, serves as chairman of LIAT shareholders.




=================
A R G E N T I N A
=================

BANCO HIPOTECARIO: Moody's Alters Outlook on B2 Rating to Negative
------------------------------------------------------------------
Moody's Investors Service has affirmed Banco Hipotecario S.A.'s B2
foreign currency senior unsecured debt rating. The outlook on
Hipotecario's rating was changed to negative from stable. This
action followed the announcement made by Moody's Latin America
Agente de Calificacion de Riesgo S.A. (MLA) that it has downgraded
the bank's BCA and affirmed all of its deposit and debt ratings.

The following rating assigned to Banco Hipotecario S.A. was
affirmed:

  Global scale, long-term foreign currency senior unsecured
  debt rating at B2, outlook changed to negative from stable

RATINGS RATIONALE

The affirmation of Hipotecario's rating reflects its assessment of
a high probability of support from the Government of Argentina (B2
stable) to the bank in case of stress, considering both the
Government's stake as the main shareholder of the bank (and the
second in terms of voting rights), and the systemic and
reputational impact that a failure of Hipotecario would have on the
local banking system. This support assumption results in one-notch
uplift to the bank's b3 BCA.

The deterioration of Hipotecario's BCA, which was downgraded to b3
from b2, follows the deterioration of the bank's asset quality
stemming from its large exposure to risky consumer loans,
compounded by the recent impairment of a sizable corporate
exposure. It also incorporates the high credit costs that have
negatively affected the bank's profitability and capitalization. In
addition, Hipotecario's continued reliance on less stable and
expensive market funding increases pressures on its profitability
and raises refinancing risks as domestic and global market
conditions remain volatile. Moody's acknowledges Hipotecario's
ample margins and ongoing expense discipline - which have prevented
a larger drop in profitability-, subdued loan growth and the bank's
ample liquidity, which partially offset the weaknesses.

The negative outlook on Hipotecario's ratings reflect its
expectation that the asset quality deterioration and its impact on
capital and profitability will continue, given its risky asset
exposures, and could lead to further downgrade of its BCA, which
would in turn cause a downgrade on its ratings. The outlook on the
B3/Baa1.ar remains stable as they are currently constrained by
Argentina's country ceiling for foreign currency deposits. Were the
BCA to be downgraded further in one notch, the global and national
scale foreign currency deposit ratings would remain unchanged.

Hipotecario's focus on unsecured personal loans (58% of its
consolidated loan portfolio as of March 2019) has left the bank
more exposed than more diversified peers to the asset risk
deterioration stemming from the challenging Argentine operating
environment. Consequently, the bank's non-performing loans (NPLs)
including its consumer finance subsidiary Tarshop S.A. rose to
12.3% of gross loans as of March 2019, from 6.4% in December 2018
and 4.0% in 2017. Additionally, the bank's largest single corporate
loan exposure, which accounted for about 4% of gross loans as of
March 2019, became delinquent and caused a significant increase in
non-performing loans and credit costs. Excluding the delinquent
corporate loan, NPLs would have been 8.1% as of March 2019, which
is still significantly higher than 2018 year-end due to the
continued deterioration of Hipotecario's consumer portfolio.

Additionally, Hipotecario's loan loss reserve coverage of problem
loans remains weak at 52%. Moody's expects that continued
deterioration in asset risk, coupled with the implementation of
IFRS 9 expected loss provisioning (mandatory for all Argentine
banks starting January 1, 2020) and potential continued losses on
the large delinquent corporate loan (it is 45% provisioned as of
March 2019), will require an increase in provisions over the coming
quarters.

Subdued loan growth, stable profitability until 2018 year end, and
low dividend payouts have allowed Hipotecario to maintain stable
capital metrics, even as those of many of its peers deteriorated.
Tangible common equity equaled 10.1% of risk-weighted assets as of
March 2019, in line with the average over the preceding three
years. However, Moody's expects capital to be negatively pressured
by higher provisioning needs considering the currently low reserve
coverage of problem loans.

The significant increase in credit costs combined with severance
payments as part of the resizing of its cost structure in the first
quarter of 2019 led to a decline in Hipotecario's annualized
profitability ratio to 0.1%, measured as net income to tangible
assets. However, when adjusting for the one-time credit costs
related to the delinquent corporate loan, Hipotecario's
profitability would have been 2.7% through 1Q2019, up from 2.4% in
2018. However, as with other Argentine banks, Hipotecario's
earnings metrics are exaggerated by the high rate of inflation.

WHAT COULD CHANGE THE RATING -- UP OR DOWN

Hipotecario's ratings would likely be downgraded if the bank's
asset quality, capital, and /or profitability continue to
deteriorate, leading to a downgrade of its BCA. Particularly,
further deterioration of the bank's asset quality that would cause
problem loans to represent more than 75% of shareholder's equity
and loan loss reserves (Texas ratio, currently at 46%), would
likely cause a downgrade. Hipotecario's ratings could also face
downward pressure if the operating environment deteriorates further
and/or the Argentine sovereign rating were downgraded.

Although an upgrade of Hipotecario's ratings is currently unlikely,
considering the strong credit interlinkages between the sovereign
and the bank, an upgrade of the Argentine sovereign rating
accompanied by an improvement in operating conditions could put
positive pressures on the bank's ratings, provided the bank's asset
quality improves and funding access is restored.


BANCO HIPOTECARIO: Moody's Assigns B2 GS Local Curr. Deposit Rating
-------------------------------------------------------------------
Moody's Latin America has affirmed all of the ratings of Banco
Hipotecario S.A., including its B2 and A3.ar global and national
scale local currency deposits ratings, and the bank's B3 and
Baa1.ar global and national scale foreign currency deposit ratings.
In addition, Moody's downgraded the bank's baseline credit
assessment (BCA) to b3 from b2, and its counterparty risk
assessment to B2(cr) from B1(cr). Hipotecario's rating outlook was
changed to negative from stable, except for the outlook on the
foreign currency deposit ratings, which remains stable.

The following ratings assigned to Banco Hipotecario S.A. were
affirmed:

Global scale, long-term local currency deposit rating at B2,
outlook changed to negative from stable

Global scale, short-term local currency deposit rating at Not
Prime

Global scale, long-term foreign currency deposit rating at B3,
stable outlook

Global scale, short-term foreign currency deposit rating at Not
Prime

Argentine national scale, long-term local currency deposit rating
at A3.ar, outlook changed to negative from stable

Argentine national scale, long-term foreign currency deposit rating
at Baa1.ar, stable outlook

Argentine national scale, long-term foreign currency senior
unsecured debt rating at A3.ar, outlook changed to negative from
stable

Global scale, short-term counterparty risk assessment at Not
Prime(cr)

Outlook, changed to negative(m) from stable

The following assessments assigned to Banco Hipotecario S.A. were
downgraded:

Baseline credit assessment to b3 from b2

Adjusted baseline credit assessment to b3 from b2

Global scale, long-term counterparty risk assessment to B2(cr) from
B1(cr)

RATINGS RATIONALE

The downgrade of Hipotecario's BCA to b3 from b2 follows the
deterioration of the bank's asset quality stemming from its large
exposure to risky consumer loans, compounded by the recent
impairment of a sizable corporate exposure. The downgrade
incorporates the high credit costs that have negatively affected
the bank's profitability and capitalization. In addition,
Hipotecario's continued reliance on less stable and expensive
market funding increases pressures on its profitability and raises
refinancing risks as domestic and global market conditions remain
volatile. Moody's acknowledges Hipotecario's ample margins and
ongoing expense discipline - which have prevented a larger drop in
profitability-, subdued loan growth and the bank's ample liquidity,
which partially offset the weaknesses.

Hipotecario's focus on unsecured personal loans (58% of its
consolidated loan portfolio as of March 2019) has left the bank
more exposed than more diversified peers to the asset risk
deterioration stemming from the challenging Argentine operating
environment. Consequently, the bank's non-performing loans (NPLs)
including its consumer finance subsidiary Tarshop S.A. rose to
12.3% of gross loans as of March 2019, from 6.4% in December 2018
and 4.0% in 2017. Additionally, the bank's largest single corporate
loan exposure, which accounted for about 4% of gross loans as of
March 2019, became delinquent and caused a significant increase in
non-performing loans and credit costs. Excluding the delinquent
corporate loan, NPLs would have been 8.1% as of March 2019, which
is still significantly higher than 2018 year-end due to the
continued deterioration of Hipotecario's consumer portfolio.

Additionally, Hipotecario's loan loss reserve coverage of problem
loans remains weak at 52%. Moody's expects that continued
deterioration in asset risk, coupled with the implementation of
IFRS 9 expected loss provisioning (mandatory for all Argentine
banks starting 1 January 2020) and potential continued losses on
the large delinquent corporate loan (it is 45% provisioned as of
March 2019), will require an increase in provisions over the coming
quarters.

Subdued loan growth, stable profitability until 2018 year end, and
low dividend payouts have allowed Hipotecario to maintain stable
capital metrics, even as those of many of its peers deteriorated.
Tangible common equity equaled 10.1% of risk-weighted assets as of
March 2019, in line with the average over the preceding three
years. However, Moody's expects capital to be negatively pressured
by higher provisioning needs considering the currently low reserve
coverage of problem loans.

The significant increase in credit costs combined with severance
payments as part of the resizing of its cost structure in the first
quarter of 2019 led to a decline in Hipotecario's annualized
profitability ratio to 0.1%, measured as net income to tangible
assets. However, when adjusting for the one-time credit costs
related to the delinquent corporate loan, Hipotecario's
profitability would have been 2.7% through 1Q2019, up from 2.4% in
2018. However, as with other Argentine banks, Hipotecario's
earnings metrics are exaggerated by the high rate of inflation.

The affirmation of Hipotecario's ratings reflects its assessment of
a high probability of support from the Government of Argentina (B2
stable) to the bank in case of stress, considering both the
Government's stake as the main shareholder of the bank (and the
second in terms of voting rights), and the systemic and
reputational impact that a failure of Hipotecario would have on the
local banking system. This support assumption results in one-notch
uplift to the bank's b3 BCA.

The negative outlook on Hipotecario's ratings reflect its
expectation that the asset quality deterioration and its impact on
capital and profitability will continue, given its risky asset
exposures, and could lead to further downgrade of its BCA, which
would in turn cause a downgrade on its ratings. The outlook on the
B3/Baa1.ar remains stable as they are currently constrained by
Argentina's country ceiling for foreign currency deposits. Were the
BCA to be downgraded further in one notch, the global and national
scale foreign currency deposit ratings would remain unchanged.

WHAT COULD CHANGE THE RATING -- UP OR DOWN

Hipotecario's ratings would likely be downgraded if the bank's
asset quality, capital, and /or profitability continue to
deteriorate, leading to a downgrade of its BCA. Particularly,
further deterioration of the bank's asset quality that would cause
problem loans to represent more than 75% of shareholder's equity
and loan loss reserves (Texas ratio, currently at 46%), would
likely cause a downgrade. Hipotecario's ratings could also face
downward pressure if the operating environment deteriorates further
and/or the Argentine sovereign rating were downgraded.

Although an upgrade of Hipotecario's ratings is currently unlikely,
considering the strong credit interlinkages between the sovereign
and the bank, an upgrade of the Argentine sovereign rating
accompanied by an improvement in operating conditions could put
positive pressures on the bank's ratings, provided the bank's asset
quality improves and funding access is restored.




===========
B R A Z I L
===========

INVEPAR SA: S&P Affirms 'CCC+' Global Scale ICR, Off Watch Negative
-------------------------------------------------------------------
On June 10, 2019, S&P Global Ratings affirmed its 'CCC+' global
scale and 'brBB-' national scale issuer credit ratings on
Brazil-based infrastructure operator Invepar and on its
subsidiaries. S&P also removed the ratings from CreditWatch with
negative implications.

S&P sad, "The rating actions reflect our view that short-term
liquidity pressures have diminished after Invepar paid the R$850
million debt maturity in early April, with part of the proceeds
from the fifth debentures issuance, and the group obtained a waiver
from holders of the R$1 billion debentures that the subsidiary,
Concessionaria Auto Raposo Tavares S.A. (CART; brBB-/Negative/--),
issued. The debentures contained an early payment acceleration
clause, which our February 11 downgrade triggered. However, the
clause was waived by the debenture-holders on June 5 after lengthy
and complex negotiations, given multiple parties. In our view,
these factors allow some time for Invepar to focus on improving its
capital structure.

"Nevertheless, we still view Invepar's capital structure as
unsustainable, because it continues to depend on fresh equity,
asset sales, or cash upstreams from its subsidiaries, all of which
complement the dividend streams to cover debt service costs at the
holding level. In addition, the group is still exposed to default
risk if Invepar is required to make unforeseen payments because of
cross-default clauses. The debentures of a subsidiary, Metrobarra
S.A. (brBB-/Negative) also depend on a waiver after the downgrade
triggered a payment acceleration clause. We view a payment
acceleration as unlikely, given few incentives for the creditor to
do so."




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C O L O M B I A
===============

CANACOL ENERGY: Fitch Affirms BB- LongTerm Issuer Default Ratings
-----------------------------------------------------------------
Fitch Ratings has affirmed Canacol Energy Ltd.'s Long-Term Foreign
and Local Currency Issuer Default Ratings at 'BB-', and the
company's senior unsecured notes at 'BB-'/'RR4'. The Rating Outlook
is Stable.

The ratings reflect Canacol's long-term contracted sales with
investment grade counterparties, low production cost and regional
importance for Colombia. The ratings also benefit from the
company's robust reserve life followed by adequate capital
structure. Fitch expects Canacol will remain a low cost producer
while incrementally increasing production levels to an average of
38,000 boed once the Promigas expansion goes on line at the end of
June 2019, from an expected production of 19,667 boed for 2018.
Canacol's ratings are constrained by the company's relatively small
size and low diversification of gas fields. The company's reserve
life is projected to remain relatively unaffected at nearly 10
years with the expected doubling of production as its reserve base
is estimated to increase once the pipeline expansion is completed.

KEY RATING DRIVERS

Predictable Cash Flow Generation: Canacol's long-term contracted
gas sales at fixed prices with investment grade counterparties
support the company's predictable cash flow generation. Canacol's
cash flow generation will increase with the completion of the
second Promigas pipeline expansion. The company sells 91% of its
gas production under fixed price, long-term take or pay contracts
to high quality off-takers with a weighted average life of its
contracts of six years and an average price of $5.14MMBTU. The
company averaged an EBITDA margin of 75% from 2015-2018, and Fitch
expects 2019 EBITDA will be within historical averages at an
estimated USD208 million. Fitch projects an average EBITDA of
nearly USD300 million between 2019-2022, as production is expected
to reach 37,000 boed.

Positive Through The Cycle FCF: Fitch estimates an average positive
FCF of approximately USD60 million for Canacol from 2019-2022, not
considering any non-planned expansion plans. Fitch expects capex
plans to be more aligned with Canacol's historical average of below
USD120 million per annum, resulting in strong FCF. Fitch assumes
the company will use its cash to pay dividends or on developmental
and/or exploration capex.

Strong Capital Structure: Fitch's base case forecasts that total
debt to EBITDA will be 1.7x in 2019 and average 1.2x from
2020-2022. On a total debt to 1P reserve, Fitch estimates a
USD5.42boe to 1P reserve figure assuming 380,155mmcf (66.7mmboe).
Canacol has a strong maturity profile with its first maturity
starting in 2Q2020 with eleven quarterly payments until maturity in
2022 for its USD30 million term loan, followed by its USD320
million bond issuance due in 2025. The strong maturity profile
allows Canacol the ability to reinvest capital into increasing
production, build up reserve life and explore more growth
opportunities. Fitch expects the company will be able to reach
forecasted production levels and continue to increase reserves
focusing initially on converting 2P to 1P and maintaining a healthy
reserve life of nearly 10 years at a sustainable level.

Limited Production Diversification: Canacol's ratings reflect its
stable but concentrated production profile. Its limited
diversification exposes the company to operational and
macroeconomic risks associated with small-scale gas production.
Fitch expects the company's production to be 25,000 boed in 2019,
gradually increasing year after year reaching 50,000 boed by 2024.
Canacol's production has remained around 20,000 boed in 2018 and
1H2019 due to limited transportation capacity from the Esperanza
and VIM 5 blocks. Canacol has signed a pipeline construction
agreement with Promigas. Upon construction, Fitch estimates the
company has the ability to deliver 230MMCFD (40,000 boed).

Adequate Reserve Life: Fitch believes Canacol has an adequate
reserve life even when assuming a peak in production due to its 1P
reserves. As of the end of fourth quarter 2018, Canacol reported
Colombian 1P reserves of 66.7 million boe, with 100% related to
gas, resulting in a 9.4 years 1P reserve life and a 2P reserves of
98.1 million boe equating to 13.8 years for 2P, applying 2018
historical production of 20,947 boed . Fitch expects the company
will maintain its healthy reserve life of over seven years even
when it produces at its peak starting in 2019 by converting its 2P
reserves to 1P, which per Fitch's calculations results in a pro
forma reserve life of nearly eight years. This figure does not
assume any exploration or further conversion of 3P to 2P.
Historically, the company has reported an 83% exploration success
rate and a 100% success rate on development.

Regional Importance: Canacol's operations are concentrated in the
Lower Magdalena basin, where it is a key gas producer and supplier
for the highly dependent Caribbean coast of Colombia. Gas
represents 70% of the regional energy matrix, and refineries
consume nearly 20% of total supply. Moreover, Fitch expects Canacol
will become the largest supplier to the region by 2021 when
Ecopetrol's Guijara basin, which historically has been the largest
supplier of gas to the region, is projected to decline to below
200MMCFD.

DERIVATION SUMMARY

Canacol Energy's credit profile compares well to other small
independent oil and gas companies in the region. The ratings for
Gran Tierra (B/Positive), GeoPark (B+/Stable) and CGC (B/Negative)
are constrained to the 'B' category given the inherent operational
and commodity risks for being more oil focused producers coupled
with their relatively small scale and low diversification
production profiles.

As a gas producer and supplier, Canacol compares favorably to
Tecpetrol International (BB+/Stable), which owns a 10% stake in
Camisea Blocks 86 and 56 in Peru, equating to approximately 36,000
boed and its Fortin de Piedra assets in Argentina, which benefits
from having a portion of its production under a fixed price
environment that is guaranteed through 2021. Similar to Tecpetrol,
Canacol's regional importance to the Caribbean coast of Colombia,
which is a large consumer of gas, offers strong comparisons to
Camisea, as the block is strategically important for the country of
Peru providing 86% of the country's natural gas supply, and 40% of
the effective power of the electrical interconnected system (SEIN)
and 92% of the country's thermal power.

Canacol's capital structure, cash flow generation abilities and
liquidity profile is comparable to Tecpetrol. As of YE 2018, the
company's gross leverage stood at 2.8x with cash on hand of USD53
million covering two years of interest expense. Fitch estimates
that Canacol will reach a gross leverage of 1.7x in 2019 once it is
able to produce nearly 37,000 boed when Promigas completes a
pipeline expansion project that connects Canacol's fields to
Cartagena and Barranguilla. With the increase of production
supported by contracted sales and capex expectations in line with
historical averages, the company cash flow profile is strong and
similar to Tecpetrol. Fitch estimates' Canacol will be FCF positive
in 2019 and remain so through 2021 assuming no further delays in
the pipeline expansion project.

Canacol's capital structure compares favorably to some of its
regional oil and gas producers Gran Tierra Energy, Geopark and CGC.
Fitch projects Canacol to have similar gross leverage ratios of
1.8x in 2019 to GTE and Geopark at below 2.0x, and superior to
CGC's at slightly below 2.5x.

KEY ASSUMPTIONS

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

  -- An average of 90% from 2019-2022 of production is contracted;

  -- Fitch is assuming a weighted average contract price of
$4.84MCF in 2019, $5.15MCF in 2020-2021, and $5.13MCF in 2022,
consistent with its take or pay contracts;

  -- Average production to be 147MMCFD/d in 2019 and average
190MMCFD/d from 2020-2022;

  -- Average annual capex of USD120 million, total of USD485
million from 2019-2022.

RATING SENSITIVITIES

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

  -- Net production rising consistently to 40,000 boed on a
sustained basis;

  -- Increase in reserve size and diversification as well as
maintaining a minimum 1P reserve life close to 10 years;

  -- Sustained conservative capital structure and investment
discipline.

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

  -- Production size decreased to below 30,000 boed;

  -- Reserve life decreased to below seven years on a sustained
basis;

  -- Gross leverage on a sustained basis of above 2.0x;

  -- Deterioration of the company's capital structure and liquidity
as a result of either a steeper than anticipated decrease in
production or a marked increase in debt.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: As March 31, 2019, Canacol had cash on hand of
USD43 million, which covers interest expense of nearly two years.
The company's first maturity begins in 2Q2020 with 11 quarterly
payments until maturity in 2022, and Fitch estimates the company
will finance capex through operation cash flows over the rating
horizon.




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D O M I N I C A N   R E P U B L I C
===================================

DOMINICAN REPUBLIC: Business Sector Deny Stonewalling Wage Hike
---------------------------------------------------------------
Dominican Today reports that National Young Entrepreneurs
Association (ANJE) President Guillermo Julian denied that the
business sector is to blame for the deadlock of the talks with the
unions leading to a wage increase.

The business leader's statement comes one week after the National
Wages Committee blamed employers for failing to propose a salary
increase for private sector workers, according to Dominican Today.

"The business class has not opposed a wage increase, and it is not
a whim as a class, let's say that in the same resolution that
analyzes the salary increase, that same ordinance, provides for the
reclassification of companies because we request this when I say
that it is not a whim, it's what law 187 - 17 orders; the
reclassification of companies, and that law has not been complied
with," the report quoted Mr. Julian as saying.

As reported in the Troubled Company Reporter-Latin America on June
3, 2019, Fitch Ratings has assigned a 'BB-' rating to Dominican
Republic's DOP50.523 billion notes (equivalent to USD1 billion ),
maturing 2026 and to the USD1.5 billion bonds maturing 2049.


DOMINICAN REPUBLIC: IMF Says Economy Will Grow Despite Risks
------------------------------------------------------------
Dominican Today reports that the International Monetary Fund said
the outlook for the Dominican Republic is favorable and it expects
the economy to grow 5.5% this year and around 5% in the medium
term.

It said that the growth risk is moderate due to a slowdown in
credit expansion and due to the international situation, according
to Dominican Today.

"The moderation will be due to a slowdown in credit expansion, a
less favorable international environment and higher oil prices,"
the IMF said in a statement obtained by the news agency.

Nonetheless the multilateral executive board urged "redouble
efforts to improve the sustainability of debt," due to the upward
trend that is taking place, the report adds.

As reported in the Troubled Company Reporter-Latin America on June
3, 2019, Fitch Ratings has assigned a 'BB-' rating to Dominican
Republic's DOP50.523 billion notes (equivalent to USD1 billion ),
maturing 2026 and to the USD1.5 billion bonds maturing 2049.


DOMINICAN REPUBLIC: Plagued by Insufficient Power Plants, CDEEE Say
-------------------------------------------------------------------
Dominican Today reports that the blackouts in various parts of the
country are not financial, State Electric Utility (CDEEE) CEO Ruben
Jimenez Bichara affirmed.

"If they were financial, the power companies would already be on
the front page wanting payment," the official said, according to
Dominican Today.  "There are not enough plants to satisfactorily
cover the demand that the country has at this time," the official
added.

The official said Punta Catalina is expected to enter the system
soon to cover the current deficit, the report relays.

The CDEEE said on the social networks that five power plants --some
630 megawatts -- are out of service, which hobbles the supply, the
report says.

Recently the country's power companies (ADIE) said they have more
than 270 megawatts available, "which if called upon to enter under
market conditions, would help respond to the demand for energy,
which has increased in recent weeks because of the prevailing high
temperatures," the report adds.

As reported in the Troubled Company Reporter-Latin America on June
3, 2019, Fitch Ratings has assigned a 'BB-' rating to Dominican
Republic's DOP50.523 billion notes (equivalent to USD1 billion ),
maturing 2026 and to the USD1.5 billion bonds maturing 2049.




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

JAMAICA: Labor Market Information System Being Revamped
-------------------------------------------------------
RJR News reports that the Jamaican Labor Market Information System
is being revamped to make it more user-friendly, efficient and
secure.

The website, which falls under the purview of the Jamaican Ministry
of Labor and Social Security, enables employers to post job
openings, and persons seeking employment to upload resumes,
according to RJR News.

Job matching and placements are executed through the system's
Electronic Exchange, the report notes.

Colette Roberts Risden, Permanent Secretary in the Ministry, said
the enhanced website will be more contemporary with a number of
significant features, including an improved user interface,
heightened security mechanisms to safeguard data, and facilitation
of more robust reports that provide detailed labour market
analyses, the report relays.

She added that the upgraded system will be complemented by a mobile
app that has been developed, all of which are slated to be unveiled
shortly, 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.




===========
M E X I C O
===========

BBVA BANCOMER: Fitch Cuts LT Hybrid Securities Notes Rating to BB+
------------------------------------------------------------------
Fitch Ratings has reviewed the ratings of 17 Mexican Financial
Institutions following the downgrade of Mexico's sovereign ratings
to 'BBB' from 'BBB+' on June 5, 2019.

The portfolio review includes Mexican FIs that Fitch believes were
more sensitive to a sovereign downgrade or any deterioration of the
operating environment including those with Issuer Default Ratings,
Viability Ratings or Insurers Financial Strength ratings that are
at, above or one notch below the sovereign rating level. The Rating
Outlook is Stable.

KEY RATING DRIVERS

IDRs, VRS AND IFS

Government-Support Driven Ratings

Fitch has downgraded the Long-Term IDRs of the government-support
driven entities to 'BBB' from 'BBB+' as their creditworthiness is
linked to that of sovereign rating, given their explicit guarantee,
policy role or high strategic importance to the government.

This group considers state-owned banks or government non-bank
financial institutions with IDRs, Support Ratings and Support
Rating Floors driven by explicit support (Bancomext, Banobras and
Nafin) or implicit support (Infonavit and IPAB) from the sovereign,
where the federal government is the shareholder and the source of
any potential support, if required.

Local-Owned Commercial Banks and Affiliates

Fitch has downgraded the ratings of two local commercial banks,
Banco Compartamos and Banco Inbursa, by one notch, whose
international ratings are at or close to the sovereign rating and
driven by their stand-alone credit profiles as reflected by their
VRs. Fitch believes these bank's performance and prospects could be
affected by a worsening operating environment, reflecting the
agency's view that the relativities of the VRs/IDRs versus the
sovereign rating should be maintained.

Fitch also downgraded Banorte and GFNorte ratings by one notch,
despite its higher exposure to government risk than peers. The
latter due to the bank's performance, which has shown resilience to
a deteriorating operating environment, its growing franchise as the
second largest bank in the country and controlled asset quality. In
Fitch's view, if the operating environment continues to worsen, the
downside potential for these ratings relative to peers will be more
significant and immediate.

The downgrade of the IFS rating of Seguros Inbursa is mirroring the
action on Banco Inbursa. Seguros Inbursa's rating is based on legal
explicit support given by its holding group Grupo Financiero
Inbursa (GFInbursa), which is legally obliged to grant support for
its subsidiaries' losses. Fitch considers GFInbursa's credit
quality as aligned to that of its main operating subsidiary, Banco
Inbursa.

Foreign-Owned Commercial Banks

The third group considers foreign-owned commercial banks whose IDRs
are driven by institutional support at or above the sovereign level
(Citibanamex, SAN Mexico, HSBC Mexico) or where the IDRs are driven
by a VR that is above the sovereign rating (BBVA Bancomer).

Fitch has downgraded the support-driven IDRs of Citibanamex and
HSBC Mexico to 'A-' from 'A', due to the maximum support-driven
uplift of two notches above the sovereign rating allowed as per the
agency's criteria. While not driving their IDRs, the VR of
Citibanamex was also downgraded due to the high influence of the
operating environment on the bank's ratings, to 'bbb+' from 'a-',
given its relatively high level ,which is currently marked by a
well-diversified business model. Citibanamex's VR continues to be
one notch above the sovereign; however, it remains on Rating Watch
Negative due to the bank's recent equity restructuring. By
contrast, given its current relatively low level, HSBC Mexico's VR
of 'bbb-' was affirmed maintaining the relativity with the
sovereign rating.

BBVA Bancomer's LT IDRs and VR were downgraded to 'BBB+' from 'A-'
and to 'bbb+' from 'a-', respectively. The bank's VR continues to
be one notch above the sovereign mainly influenced by the strong
company profile within the Mexican financial system and among major
Latam banks, an uplift that Fitch is unlikely to widen. Ratings
continue to be driven by its standalone strength, although these
are already at 'BBB+', which is the minimum level implied by the
bank's potential support from its ultimate parent the Spain's Banco
Bilbao Vizcaya Argentaria (BBVA, A-/Negative), considering BBVA
Bancomer's role as a core subsidiary of material size for its
ultimate parent.

SAN Mexico's IDRs were affirmed because the bank's IDRs are already
at the minimum level implied by Fitch's support approach derived
from its parent's IDRs (Banco Santander, S.A., A-/Stable). However,
the bank's VR was downgraded to 'bbb' from 'bbb+' because its
standalone performance is highly influenced by the operating
environment, which has already started to worsen limiting the
likelihood of having the VR above the sovereign. IDRs are now
driven by parental support.

Bolsa Mexicana de Valores and Subsidiaries

The affirmation of Bolsa Mexicana de Valores (BMV)' LT IDRs at
'BBB+' is driven by the resilience of its credit profile, which
considers its very low leverage, high cash flow generating business
model that benefits from a diversified revenue base, and the
relevant contribution of non-transactional sources of income. The
affirmation of Asigna's and CCV's ratings and their Stable Outlook
are aligned with the actions taken on its parent (BMV), since these
are support driven ratings. These entities are now one notch above
of the sovereign rating.

SUPPORT RATINGS (SRs) and SUPPORT RATING FLOORS (SRFs)

The existing SRs have been affirmed, they would not change as long
as the assessment of the support factors does not change. Fitch has
downgraded SRFs for the government-owned entities to 'BBB' from
'BBB+', which indicate a level below which the agency will not
lower the entities' LT IDRs as long as the rating of the supporter
(government) and the assessment of support does not change. Banco
Inbursa, Banco Compartamos, Banorte and GFNorte SRFs were affirmed
reflecting their systemic importance, which remain unchanged.

NATIONAL SCALE RATINGS

No changes are expected in the national scale ratings of these FIs
derived from the recent downgrade of the sovereign, since these
ratings are local relative rankings of creditworthiness within a
particular jurisdiction.

DEBT RATINGS

The global debt ratings (senior unsecured, subordinated debt and
hybrids) of the entities in this portfolio review are mirroring the
movements on its respective IDRs or VRs. The senior unsecured debt
ratings continue to be aligned with their respective banks' IDRs;
while the subordinated debt and hybrids (except from SAN Mexico
hybrids) are maintaining the same differentiation with the
respective anchor ratings.

SAN Mexico hybrids securities ratings were affirmed as parental
support partially mitigates non-performance risk and therefore they
are rated at the level that would be assigned to equivalent
securities issued by its ultimate parent.

Fitch has also assigned a final rating to the senior unsecured
issuance HSBC 19D at 'A-', which is one notch below the expected
rating assigned on May 14, 2019, in order to remain aligned with
HSBC Mexico's ratings.

SHORT-TERM RATINGS

The short-term ratings of Bancomext, Banobras, Nafin, Infonavit and
IPAB were affirmed as these are aligned with the ST ratings of the
sovereign.

BMV, Asigna and CCV were also affirmed as there were no changes in
their LT-IDRs and as per the correspondence tables in Fitch
criteria.

The ST ratings of BBVA Bancomer, Banorte, GF Norte, Banco
Compartamos and Banco Inbursa were downgraded by one notch as per
the correspondence tables in Fitch criteria and considerations on
the funding and liquidity factor score as the principal determinant
of the rating assigned. Under Criteria Observation (UCO) status on
BBVA Bancomer was removed.

SAN Mexico and Citibanamex ST ratings were affirmed and remain
aligned to that of their parent's. HSBC UCO status was removed and
its ST ratings affirmed, because after the downgrade of the IDRs
there is no upside potential on the ST ratings.

RATING SENSITIVITIES

VRs, IDRs and IFS

The ratings and Outlooks, for the financial institutions included
in this portfolio review are sensitive to any further changes in
Mexico's sovereign ratings, or material deterioration on the local
operating environment over the foreseeable future.

There is limited upside potential on BMV and subsidiaries' ratings
as its current stand-alone ratings are one notch above the
sovereign rating.

SRs and SRFs

SRs are only sensitive to changes in Fitch's change on the
assessment of the support factors. SRFs of Nafin, Bancomext,
Banobras, Infonavit and IPAB are aligned to the sovereign rating,
therefore they will likely move in line with the sovereign.

The SRF of Banco Inbursa, Banco Compartamos, Banorte and GFNorte
could only change if Fitch's view on the potential sovereign
support considering their respective systemic importance changes.

Fitch has taken the following rating actions:

Banco Nacional de Comercio Exterior, S.N.C (Bancomext)

  -- Long-Term Foreign and Local Currency IDR downgraded to 'BBB'
from 'BBB+'; Outlook Stable;

  -- Short-Term Foreign and Local Currency IDR affirmed at 'F2';

  -- Support Rating affirmed at '2';

  -- Support Rating Floor revised to 'BBB' from 'BBB+';

  -- Long-term hybrid securities notes downgraded to 'BBB-' from
'BBB'.

Banco Nacional de Obras y Servicios Publicos, S.N.C. (Banobras)

  -- Long-Term Foreign and Local Currency IDR downgraded to 'BBB'
from 'BBB+'; Outlook Stable;

  -- Short-Term Foreign and Local Currency IDR affirmed at 'F2';

  -- Support Rating affirmed at '2';

  -- Support Rating Floor revised to 'BBB' from 'BBB+'.

Nacional Financiera, S.N.C. (Nafin)

  -- Long-Term Foreign and Local Currency IDR downgraded to 'BBB'
from 'BBB+'; Outlook Stable;

  -- Short-Term Foreign and Local Currency IDR affirmed at 'F2';

  -- Support Rating affirmed at '2';

  -- Support Rating Floor revised to 'BBB' from 'BBB+';

  -- Long-term senior unsecured debt issuances downgraded to 'BBB'
from 'BBB+';

  -- Senior unsecured certificates of deposits (CDs) program and
outstanding issuances downgraded to 'BBB' from 'BBB+'.

  -- Short-term portion of the CDs program affirmed at 'F2'.

Instituto del Fondo Nacional de la Vivienda para los Trabajadores
(Infonavit)

  -- Long-Term Foreign and Local Currency IDR downgraded to 'BBB'
from 'BBB+'; Outlook Stable;

  -- Short-Term Foreign and Local Currency IDR affirmed at 'F2';

  -- Support Rating affirmed at '2';

  -- Support Rating Floor revised to 'BBB' from 'BBB+'.

Instituto para la Proteccion al Ahorro Bancario (IPAB)

  -- Long-Term Foreign and Local Currency IDR downgraded to 'BBB'
from 'BBB+'; Outlook Stable;

  -- Short-Term Foreign and Local Currency IDR affirmed at 'F2';

  -- Support Rating affirmed at '2';

  -- Support Rating Floor revised to 'BBB' from 'BBB+'.

Banco Nacional de Mexico, S.A. (Citibanamex)

  -- Long-Term Foreign and Local Currency IDRs downgraded to 'A-'
from 'A'; Outlook Stable;

  -- Viability rating downgraded to 'bbb+' from 'a-'; Negative
Watch Maintained

  -- Short-Term Foreign and Local Currency IDR affirmed at 'F1';

  -- Support Rating affirmed at '1'.

BBVA Bancomer, S.A. (BBVA Bancomer)

  -- Long-Term Foreign and Local Currency IDRs downgraded to 'BBB+'
from 'A-'; Outlook Stable;

  -- Short-Term Foreign and Local Currency IDR downgraded to 'F2'
from 'F1'; UCO removed;

  -- Support Rating affirmed at '2';

  -- Viability rating downgraded to 'bbb+' from 'a-';

  -- Long-term hybrid securities notes downgraded to 'BB+' from
'BBB-';

  -- Long-term hybrid junior securities notes downgraded to 'BB'
from 'BB+';

  -- Long-term Basel III compliant Tier 2 hybrid securities notes
downgraded to 'BB+' from 'BBB-'.

Banco Mercantil del Norte, S.A. (Banorte)

  -- Long-Term Foreign and Local Currency IDRs downgraded to 'BBB'
from 'BBB+'; Outlook Stable;

  -- Short-Term Foreign and Local Currency IDR downgraded to 'F3'
from 'F2';

  -- Support Rating affirmed at '2';

  -- Support Rating Floor affirmed at 'BBB-';

  -- Viability rating downgraded to 'bbb' from 'bbb+';

  -- USD500 million TIER2 subordinated preferred capital notes
downgraded to 'BB' from 'BB+';

  -- USD120 million junior subordinated securities downgraded to
'BB-' from 'BB'.

Grupo Financiero Banorte, S.A.B. de C.V. (GFNorte)

  -- Long-Term Foreign and Local Currency IDRs downgraded to 'BBB'
from 'BBB+'; Outlook Stable;

  -- Short-Term Foreign and Local Currency IDR downgraded to 'F3'
from 'F2';

  -- Support Rating affirmed at '5';

  -- Support Rating Floor affirmed at 'NF'.

  -- Viability rating downgraded to 'bbb' from 'bbb+';

Banco Santander (Mexico), S.A. (SAN Mexico)

  -- Long-Term Foreign and Local Currency IDRs affirmed at 'BBB+';
Outlook Stable;

  -- Short-Term Foreign and Local Currency IDR affirmed at 'F2';

  -- Support Rating affirmed at '2';

  -- Viability rating downgraded to 'bbb' from 'bbb+';

  -- Long-term senior unsecured global notes affirmed at 'BBB+';

  -- Long-term Basel III compliant Tier 2 hybrid securities notes
affirmed at 'BBB-';

  -- Perpetual hybrid securities non-preferred contingent
convertible capital notes, which qualify as additional Tier 1
affirmed at 'BB'.

Banco Inbursa, S.A. (Banco Inbursa)

  -- Long-Term Foreign and Local Currency IDRs downgraded to 'BBB'
from 'BBB+'; Outlook Stable;

  -- Short-Term Foreign and Local Currency IDR downgraded to 'F3'
from 'F2';

  -- Support Rating affirmed at '3';

  -- Support Rating Floor affirmed at 'BB+';

  -- Viability rating downgraded to 'bbb' from 'bbb+';

  -- 10-year 4.125% senior unsecured notes downgraded to 'BBB' from
'BBB+';

  -- 10-year 4.375% senior unsecured notes downgraded to 'BBB' from
'BBB+'.

Seguros Inbursa, S.A., Grupo Financiero Inbursa (Seguros Inbursa)

  -- Insurer Financial Strength downgraded to 'BBB' from 'BBB+';
Outlook Stable.

HSBC Mexico, S.A. (HSBC Mexico)

  -- Long-Term Foreign and Local Currency IDRs downgraded to 'A'-
from 'A'; Outlook Stable;

  -- Short-Term Foreign and Local Currency IDR affirmed at 'F1';
UCO removed;

  -- Support Rating at '1';

  -- Viability rating affirmed at 'bbb-';

  -- HSBC 19D senior unsecured notes assigned 'A-'.

Banco Compartamos, S.A. I.B.M (Banco Compartamos)

  -- Long-Term Foreign and Local Currency IDRs downgraded to 'BBB-'
from 'BBB', Outlook Stable;

  -- Short-Term Foreign and Local Currency IDR downgraded to 'F3'
from 'F2';

  -- Support Rating affirmed at '5';

  -- Support Rating Floor affirmed at 'NF'.

  -- Viability Rating downgraded to 'bbb-' from 'bbb';

Bolsa Mexicana de Valores, S.A.B de C.V. (BMV)

  -- Long-Term Foreign and Local Currency IDR affirmed at 'BBB+';
Outlook Stable;

  -- Short-Term Foreign and Local Currency IDR affirmed at 'F2'.

Asigna Compensacion y Liquidacion F30430 FISO Bancomer, S.A.
(Asigna)

  -- Long-Term Foreign and Local Currency IDR affirmed at 'BBB+';
Outlook Stable;

  -- Short-Term Foreign and Local Currency IDR affirmed at 'F2'.

Contraparte Central de Valores de Mexico, S.A. de C.V. (CCV)

  -- Long-Term Foreign and Local Currency IDR affirmed at 'BBB+';
Outlook Stable;

  -- Short-Term Foreign and Local Currency IDR affirmed at 'F2'.


PETROLEOS MEXICANOS: KPMG Cardenas Raises Going Concern Doubt
-------------------------------------------------------------
Petroleos Mexicanos filed with the U.S. Securities and Exchange
Commission its annual report on Form 20-F, disclosing a net loss of
MXN180,419,837,000 on MXN1,681,119,150,000 of total sales for the
year ended Dec. 31, 2018, compared to a net loss of
MXN280,850,619,000 on MXN1,397,029,719,000 of total sales for the
year ended in 2017.

The audit report of KPMG Cardenas Dosal, S.C., states that PEMEX
has suffered recurring losses from operations, has a net capital
deficiency and net equity deficit.  These issues, together with its
fiscal regime, the significant increase in its indebtedness and the
reduction of its working capital raise substantial doubt about its
ability to continue as a going concern.

The Company's balance sheet at Dec. 31, 2018, showed total assets
of MXN2,075,197,268,000, total liabilities of
MXN3,534,602,700,000,
and MXN1,459,405,432,000 in total deficit.

A copy of the Form 20-F is available at:

                       https://is.gd/2Egh6z

Petroleos Mexicanos engages in the exploration, exploitation,
refining, transportation, storage, distribution, and sale of crude
oil and natural gas in Mexico.  The Company was founded in 1938 and
is based in Mexico City, Mexico.




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

CLOUD I Q LLC: Hires McConnell Valdes as Puerto Rico Counsel
------------------------------------------------------------
Cloud I Q, LLC, seeks authority from the U.S. Bankruptcy Court for
the Eastern District of Wisconsin to employ McConnell Valdes LLC,
as local Puerto Rico counsel to the Debtor.

Cloud I Q, LLC requires McConnell Valdes to:

   a. act as co-counsel to the Debtor's Bankruptcy attorneys in
      Puerto Rico on any matters or issues that may need to be
      Pursued in the Commonwealth of Puerto Rico, which includes
      the pursuit of any actions necessary to be pursued for the
      protection of Debtor's rights or interests; and

   b. provide any acts necessary to further Debtor's
      reorganization endeavors, in Puerto Rico, and otherwise
      advise and assist with respect to Puerto Rico legal
      issues and related matters thereto.

McConnell Valdes will be paid at these hourly rates:

     Members                $220 to $390
     Counsels               $185 to $380
     Associates             $145 to $190
     Paralegals             $135 to $155
     Law Clerks             $120

McConnell Valdes will also be reimbursed for reasonable
out-of-pocket expenses incurred.

Nayuan Zouairabani, partner of McConnell Valdes LLC, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estates.

McConnell Valdes can be reached at:

     Nayuan Zouairabani, Esq.
     MCCONNELL VALDES LLC
     270 Ave. Luiz Munoz Rivera, 7th Floor
     San Juan, PR 00918
     Tel: (787) 759-9292

                       About Cloud I Q LLC

Cloud I Q LLC, a Wisconsin-based IT solution provider, filed a
Chapter 11 petition (Bankr. E.D. Wis. Case No. 19-23680) on April
19, 2019.  In the petition signed by Jason Neilitz, member, the
Debtor estimated $0 to $50,000 in assets and $1 million to $10
million in liabilities.  The Hon. Michael G. Halfenger oversees the
case.  Paul G. Swanson, Esq., at Steinhilber Swanson LLP, serves as
bankruptcy counsel.


INTEGRAND ASSURANCE: A.M. Best Changes Issuer Credit Rating to 'e'
------------------------------------------------------------------
A.M. Best has removed from under review with negative implications
and changed the Financial Strength Rating to a Non-Rating
Designation of E (Under Regulatory Supervision) from C++ (Marginal)
and the Long-Term Issuer Credit Rating to "e" from "b" of INTEGRAND
Assurance Company (San Juan, Puerto Rico), following a recent court
decision that placed the company under regulatory supervision.

INTEGRAND was placed under regulatory supervision (Puerto Rico)
primarily due to the sizable development on Hurricane Maria losses
that exhausted its reinsurance protection. The Hurricane Maria
losses developed significantly in the second half of 2018 and in
the first quarter of 2019. Additionally, the company still has
exposure to disputed reinsurance recoverable, with heightened
uncertainty regarding the ultimate resolution.


PUERTO RICO: Committee Says Changes to Members' Claims Minor
------------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the Official Committee of Unsecured Creditors of all Commonwealth
of Puerto Rico and other Title III debtors submitted in May 2019 a
third amended verified statement out of an abundance of caution
given recent inquiries from parties in interest concerning
committee members' disclosable economic interests in relation to
the Debtors.

On June 15, 2017, the Office of the United States Trustee for the
District of Puerto Rico filed a Notice Appointing Creditors
Committee for Unsecured Creditors.

On Aug. 16, 2017, the Committee filed the Verified Statement of
Official Committee of Unsecured Creditors Pursuant to Bankruptcy
Rule 2019.

On Aug. 25, 2017, the U.S. Trustee filed an Amended Notice of
Appointment of Official Committee of Unsecured Creditors.  The
Amended Notice of Appointment reflected (i) that from and after
August 25, 2017, the Committee would serve as official committee of
unsecured creditors in the Commonwealth, HTA, ERS, and PREPA Title
III cases, and (ii) that the U.S. Trustee had appointed two
additional members of the Committee: Ferrovial Agroman, and Vitol,
Inc.

On Aug. 31, 2017, the U.S. Trustee filed a Second Amended Notice of
Appointment of Official Committee of Unsecured Creditors.  The
Second Amended Notice of Appointment reflected (i) that Ferrovial
Agroman had resigned from the Committee, and (ii) that the U.S.
Trustee had appointed Peerless Oil & Chemicals, Inc. ("Peerless")
to the Committee.

On May 9, 2018, the Committee filed the First Supplemental Verified
Statement of Official Committee of Unsecured Creditors Pursuant to
Bankruptcy Rule 2019.

On May 14, 2018, the U.S. Trustee filed a Third Amended Notice of
Appointment of Official Committee of Unsecured Creditors.  The
Third Amended Notice of Appointment reflected (i) that Vitol had
resigned from the Committee, and (ii) that the U.S. Trustee had
appointed Baxter Sales and Distribution Puerto Rico Corp. to the
Committee.

On Sept. 19, 2018, the U.S. Trustee filed a Fourth Amended Notice
of Appointment of Official Committee of Unsecured Creditors.  The
Fourth Amended Notice of Appointment reflected (i) that Puerto Rico
Hospital Supply, Total Petroleum Puerto Rico, Corp., and Peerless
had resigned from the Committee, and (ii) that that the U.S.
Trustee had appointed Tradewinds Energy Barceloneta, LLC to the
Committee.

On October 8, 2018, the Committee filed the Second Supplemental
Verified Statement of Official Committee of Unsecured Creditors
Pursuant to Bankruptcy Rule 2019.

In May 2019, the Committee filed a third amended verified statement
out of an abundance of caution given recent inquiries from parties
in interest concerning committee members' disclosable economic
interests in relation to the Debtors.

Changes to the amounts of such disclosable economic interests since
the filing of the Second Supplemental Verified Statement have been
minor and have not materially changed the nature and total amount
of claims represented by Committee members. Moreover, and contrary
to other creditors or groups of creditors, the Committee's
fiduciary duties run to unsecured creditors of each Debtor for
which the Committee has been appointed and such duties are not
dependent upon the composition of the Committee or the size or
nature of a particular Committee member's claims against any
particular Debtor.  

As of May 2019, members of the Creditors' Committee and their
disclosable interests are:

   (1) American Federation of Teachers ("AFT")
       555 New Jersey Avenue, N.W., 11th Floor
       Washington, DC 20001

       AFT, as authorized agent for the Asociacion de Maestros de
Puerto Rico-Local Sindical, holds prepetition unsecured claims
based upon rights arising under a collective bargaining agreement
with the Department of Education of Puerto Rico and under statute,
including, but not limited to, (1) non-contingent claims (a) for
wage increases for years of service and career enhancement as
allowed by statute and/or contract but not paid, (b) that are
subject to grievance or arbitration procedures which have not yet
been processed or therefore liquidated, and (c) that are for other
terms of employment which may have been denied, and (2) contingent
claims including but not limited to claims arising in connection
with compensation, pension, medical and other benefits and/or as a
result of any breach or alteration of the CBA or applicable statute
or law.  The Committee also incorporates herein by reference the
proof of claim [Claim No. 108,230] filed by AFT against the
Commonwealth.

   (2) Baxter Sales and Distribution Puerto Rico Corp.
       Rexco Industrial Park # 200
       Calle B Guaynabo, P.R. 00968

       Baxter holds prepetition unsecured claims against the
Commonwealth in the aggregate amount of $2,213,831 for
health-related products sold or services rendered to the
Commonwealth's Department of Health and certain public hospitals
and health facilities.

   (3) Drivetrain, LLC
       as the Creditors' Trustee for Doral Financial Corporation
       630 Third Avenue, 21st Floor
       New York, NY 10017

       DFC holds prepetition unsecured claims under a certain
closing agreement, dated December 30, 2013, by and among the
Secretary, in her capacity as Secretary of the Treasury, and DFC
and certain of its affiliates (the "2013 Closing Agreement"), under
which DFC became entitled to a credit for tax overpayments in the
amount of $34,097,526.  The 2013 Closing Agreement provided that
the DFC overpayment could be used to reduce estimated taxes or it
could be claimed as a tax refund.  As of May 2019, DFC has not used
any of the DFC overpayment.  As such, DFC has a tax refund claim in
the amount of $34,097,526.  In addition, based on certain closing
agreements, DFC is entitled to accrue a $59,314,891 amortization
deduction annually from 2017 through 2021 (the "Tax Asset"), which
could be used to reduce income that would otherwise be subject to
Puerto Rico tax. Under these closing agreements, DFC is
contractually entitled to an aggregate deduction of $296,574,455.

DFC asserts a claim for any loss of the Tax Asset, as well as any
impairment of its rights under the closing agreements.  DFC also
asserts an unliquidated damages claim against the Commonwealth on a
number of bases.

   (4) Genesis Security Services, Inc.
       5900 Isla Verde Avenue L-2 PMB 438
       Carolina, PR 00979

       Genesis holds prepetition unsecured claims against the
Commonwealth and/or its instrumentalities under agreements for the
provision of security services, in the following amounts:2

       Commonwealth:
       * Department of Labor                       $1,987,765
       * Dept. of Transportation and Public Works    $186,913
       * Capitol Superintendence                     $272,984
       * Department of Education                   $1,398,172
       * Puerto Rico Department of the Family      $2,003,934
       * Department of Health                      $1,041,388
       * Corps of Medical Emergencies Bureau          $22,700
       Highways & Transportation Authority         $1,049,522
       Puerto Rico Electric Power Authority          $157,322
                                                   ----------
              Total                                $8,120,701

   (5) Service Employees International Union ("SEIU")
       1800 Massachusetts Avenue, N.W.
       Washington, DC 20036

       SEIU and its affiliates, SEIU Local 1996/Sindicato
Puertorriqueo de Trabajadores y Trabajadoras, and SEIU Local
1199/Union General de Trabajadores, hold prepetition unsecured
contingent and non-contingent claims, liquidated and unliquidated,
against the Commonwealth and/or its instrumentalities based on (1)
pay, benefits and other terms of employment owing to SEIU members
under collective bargaining agreements with the Commonwealth and/or
its instrumentalities, including, but not limited to, (a) pay,
benefits and other terms of employment claimed in pre-petition
union grievances and arbitrations and (b) pay, benefits and other
terms of employment denied employees as a result of pre-petition
legislative, executive or other unilateral action by the
Commonwealth; and (2) pension and other post-employment benefits
that SEIU members have accrued as a result of their employment with
the Commonwealth and/or its instrumentalities and as a result of
their participation in the Employee Retirement System.  SEIU's
pension claim includes the portion of the total actuarial liability
of the Employee Retirement System, which total is estimated to be
approximately $36 billion, that is attributable to the accrued
benefits earned by SEIU members employed by the Commonwealth and
its instrumentalities.

   (6) Tradewinds Energy Barceloneta, LLC.
       1760 Loiza Street, Suite 303
       San Juan PR 00911

       Tradewinds and its affiliate, Tradewinds Energy Vega Baja,
LLC, hold prepetition unsecured claims against PREPA in the amount
of $20,400,000 and $13,600,000, respectively, based upon certain
rights and breaches arising under Power Purchase and Operating
Agreements executed on or about October 19 and October 20, 2011
(the "PPO Agreements") in which Tradewinds Energy LLC (an affiliate
of Tradewinds and Tradewinds Vega Baja) agreed to build wind
turbine electricity generating plant facilities and PREPA, in
return, contractually agreed to buy the electricity from Tradewinds
Energy LLC.  Subsequently, Tradewinds Energy, LLC assigned its
interest in the PPO Agreements to Tradewinds and Tradewinds Vega
Baja.

   (7) The Unitech Engineering Group, S.E.
       Urb Sabanera
       40 Camino de la Cascada
       Cidra, Puerto Rico 00739

       Unitech holds prepetition unsecured claims against the
Commonwealth of Puerto Rico under certain construction contracts,
in the approximate amount of $11,284,463, plus interest.
Counsel to the Official Committee of Unsecured Creditors:

         Luc. A. Despins, Esq.
         Andrew V. Tenzer, Esq.
         Michael E. Comerford, Esq.
         G. Alexander Bongartz, Esq.
         PAUL HASTINGS LLP
         200 Park Avenue
         New York, NY 10166
         Telephone: (212) 318-6000
         E-mail: lucdespins@paulhastings.com
                 andrewtenzer@paulhastings.com
                 michaelcomerford@paulhastings.com
                 alexbongartz@paulhastings.com

Local Counsel to the Official Committee of Unsecured Creditors:

         Juan J. Casillas Ayala, Esq.
         Diana M. Batlle-Barasorda, Esq.
         Alberto J. E. Aneses Negron, Esq.
         Ericka C. Montull-Novoa, Esq.
         CASILLAS, SANTIAGO & TORRES LLC
         El Caribe Office Building
         53 Palmeras Street, Ste. 1601
         San Juan, PR 00901-2419
         Telephone: (787) 523-3434
         E-mail: jcasillas@cstlawpr.com
                 dbatlle@cstlawpr.com
                 aaneses@cstlawpr.com
                 emontull@cstlawpr.com

                      About Puerto Rico

Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70 billion,
a 68% debt-to-GDP ratio and negative economic growth in nine of the
last 10 years.

The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.

The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III of
2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').

The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017.  On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").

U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases.  The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that may
be referred to her by Judge Swain, including discovery disputes,
and management of other pretrial proceedings.

Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.

The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.

Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.

McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets Inc.
is the Board's municipal investment banker.

Prime Clerk LLC is the claims and noticing agent.  Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico

Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.

O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.

The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.

                    Bondholders' Attorneys

Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet, Rivera
& Sifre, P.S.C. and serve as counsel to the Mutual Fund Group,
comprised of mutual funds managed by Oppenheimer Funds, Inc., and
the First Puerto Rico Family of Funds, which collectively hold over
$4.4 billion of GO Bonds, COFINA Bonds, and other bonds issued by
Puerto Rico and other instrumentalities.

White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.

Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP, Autonomy
Capital (Jersey) LP, FCO Advisors LP, and Monarch Alternative
Capital LP.

Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.

Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ Management
II LP (the QTCB Noteholder Group).

                          Committees

The U.S. Trustee formed an official committee of retirees and an
official committee of unsecured creditors of the Commonwealth.  The
Retiree Committee tapped Jenner & Block LLP and Bennazar, Garcia &
Milian, C.S.P., as its attorneys.  The Creditors Committee tapped
Paul Hastings LLP and O'Neill & Gilmore LLC as counsel.



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

Troubled Company Reporter-Latin America is a daily newsletter
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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.

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