TCRLA_Public/190628.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Friday, June 28, 2019, Vol. 20, No. 129

                           Headlines



A R G E N T I N A

CHUBUT: Fitch Affirms 'B' LongTerm IDRs, Outlook Negative


B O L I V I A

ENTEL BOLIVIA: Moody's Withdraws Ba3 CFR for Business Reasons


B R A Z I L

BRAZIL: Court Rejects Request to Free Ex-President Pending Appeal


C H I L E

CORPORACION DEL COBRE: Miner Unions Seek More Consideration


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Fitch Affirms 'BB-' LT IDR, Outlook Stable
DOMINICAN REPUBLIC: Medina Pledges Help to Avocado Growers


M E X I C O

BANORTE: Moody's Gives Ba2(hyb) Ratings to $1.1-Bil. Tier I Notes
MEXICO: Economic Activity Declines 1.4% in April


P U E R T O   R I C O

ARQUIDIOCESIS DE SAN JUAN: Matta Buying Property for $360K
DISTRIBUIDORA LEQUAR: Unsecureds to Get $50K Carve Out


T R I N I D A D   A N D   T O B A G O

TRINIDAD & TOBAGO: Lenders Vulnerable to Growing Household Debt
TRINIDAD & TOBAGO: Moody's Affirms Ba1 LT Issuer Rating
TRINIDAD PETROLEUM: S&P Affirms 'BB' ICR, Off Watch Negative

                           - - - - -


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

CHUBUT: Fitch Affirms 'B' LongTerm IDRs, Outlook Negative
---------------------------------------------------------
Fitch Ratings has affirmed the Province of Chubut's Long-Term
Foreign- and Local-Currency Issuer Default Ratings at 'B'/Negative
Outlook, reflecting the Negative Outlook assigned to Argentina.
Fitch has also affirmed the 'B' long-term ratings on Chubut's 7.75%
senior secured notes for USD650 million.

KEY RATING DRIVERS

The rating actions are based on Fitch's new "Rating Criteria for
International Local and Regional Governments" published on April 9,
2019. Under these criteria, the key rating drivers for Argentinean
LRGs are their risk profile and debt sustainability ratios. Fitch
classifies Chubut as a type B LRG since the entity must cover debt
service from cash flow on an annual basis.

Fitch has assigned Chubut a Standalone Credit Profile of 'b', which
reflects a combination of Vulnerable risk profile assessment and
moderate debt metrics, which resulted in a 'bbb' debt
sustainability assessment. The SCP also factors in rated peers'
positioning. Fitch does not apply any asymmetric risk or
extraordinary support from upper-tier governments. As a result,
Chubut's IDR is derived from its SCP assessment "b", which is in
line with Argentina's IDR.

DERIVATION SUMMARY

Risk Profile Assessment: Vulnerable

There are six weaker assessments for the risk factors, which in
combination with sovereign rating of 'B' resulted in a Vulnerable
risk profile assessment.

Revenue Robustness: Weaker

Chubut presents volatile revenue source since more than 50% of
operating revenue are transfers from National Government
(B/Negative), through federal co-participation tax transfers and
other current transfers. Federal Shared Tax Revenue is comprised of
federal taxes that are linked to national economic activity,
currently under recession.

Revenue Adjustability: Weaker

Fitch believes that additional revenue increase can cover less than
50% of reasonably decline of revenues considering that the province
presents low tax autonomy and the fact that tax revenues is
expected to grow lower than inflation in 2019 partially compensated
by oil royalties, which is an important revenue source for Chubut.
Affordability of additional taxation in the country is perceived as
low as tax rates are high and distortive.

Expenditure Sustainability: Weaker

Province's expenditure flexibility is low, as it has significant
responsibilities that are operating in nature, such as the
provision of health care and education. Salary and price
adjustments have pressured operating expenditure in recent years.
Additionally, track record of fiscal prudence is limited, also
hampered by the fact that expenditure growth is influenced by
inflation dynamics.

Expenditure Adjustability: Weaker

There are expenditure budget balance rules in place but no strong
track record of application. Fitch notes that as verified with
other provinces there is lack of structural reforms at the national
and provincial level, which makes long term fiscal sustainability
questionable.

Liabilities and Liquidity Robustness: Weaker

There is weak national framework for debt and liquidity. The
country has weak accountability and disclosure practices for
off-balance sheet risks; including public sector entities. Also,
there is appetite for risk, although policies have been prudent.
Regarding debt maturity, Fitch expects some USD200 million worth of
debt to be repaid in 2019 with no relevant increases expected given
the amortizing nature of the USD650 million bond, which is
prevalent in Chubut's debt structure.

Liabilities and Liquidity Flexibility: Weaker

There is no or very limited emergency liquidity support from upper
tiers (sovereign counterparty below BBB-). Chubut can cover
temporary deficits of the provincial treasury through the use of
the fund balances of the entire province's non-financial public
sector without financial cost (FUCO, its Spanish acronym).

Chubut presents moderate debt metrics, its direct debt of ARS 36.5
billion in 2018 represented high 3x the operating balance. As of
2018, 85.4% of the provincial debt was denominated in foreign
currency. As a mitigating factor, as of April 2019, oil royalties
covered 3.8x the debt service for the USD650 million bond above the
minimum of 1.1x stablished by the transaction documents.

Debt sustainability assessed at 'bbb'. Fitch's rating case
forward-looking scenario indicates net direct risk corresponding to
around 9x of operating balance by 2021. Considering this, in
combination with weak DSCR, Fitch assesses the province's debt
sustainability at 'bbb'. Fitch expects under its rating case
scenario debt service coverage (operating balance/debt service,
including short-term debt maturities) close to zero, thus
evidencing the need for refinancing.

Chubut is located in the Patagonian region of Argentina, where
social economic indicators tend to be better than the national
average. With an economy based on services, Chubut is in a
strategic geographic position in addition to being the country's
largest oil-producing province, responsible for around 30% of the
national output in 2018.

KEY ASSUMPTIONS

Fitch's rating case scenario is a "through-the-cycle" scenario,
which incorporates a combination of revenue, cost and financial
risk stresses. It is based on the 2018 estimated figures and
2019-2021 projected ratios.

Its rating case scenario for Chubut assumes operating revenues
running close to inflation. Salaries and pensions are expected to
increase less than inflation with positive impact on operating
balance in 2019.

RATING SENSITIVITIES

Chubut's Issuer Default Ratings are constrained by the sovereign;
therefore, any rating actions affecting Argentina (B/Negative)
should result in a similar action for Chubut. Ratings would be
downgraded if the SCP is downgraded by one notch, which could be
observed if Chubut misses any debt service payment. A similar
action would occur for Chubut's bond ratings.




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B O L I V I A
=============

ENTEL BOLIVIA: Moody's Withdraws Ba3 CFR for Business Reasons
-------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo S.A.,
withdrawn Empresa Nacional de Telecomunicaciones S.A.'s (ENTEL
Bolivia) Ba3/Aaa.bo Corporate Family Rating on its global scale and
Bolivian national scale.

The following ratings were withdrawn:

Corporate Family Rating: Ba3 (global scale); Aaa.bo (national
scale)

Prior to the withdrawal, the outlook was stable.

RATINGS RATIONALE

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

Entel is Bolivia's incumbent telecommunications service provider.
The company derives over 80% of its revenue from the mobile voice
and internet segment, where it has a market share of around 47.7%,
with full national coverage through 2G and 4G networks. In
addition, the company offers fixed landline and broadband, wireless
data, corporate and satellite television services. For the 12
months ended March 31, 2019, Entel Bolivia reported revenue
totaling close to $683 million.




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

BRAZIL: Court Rejects Request to Free Ex-President Pending Appeal
-----------------------------------------------------------------
BBC News reports that Brazil's Supreme Court has delayed its
decision over an appeal by former President Luiz Inacio Lula da
Silva against his convictions for corruption.

Judges also rejected a proposal that Lula be freed until they reach
a verdict, which is now scheduled for August, according to BBC
News.

The report notes that Lula, 73, is serving nearly 25 years in jail
for two separate convictions.

His lawyers argue that the judge who convicted him, Sergio Moro,
was not impartial and had acted politically, the report says.  Lula
led Brazil between 2003 and 2010, and is an iconic figure for the
left in Latin America, the report relays.

The former leader has denied all charges against him, including six
others for which he is awaiting trial. He argues that they are
politically motivated and designed to stop him running for the
presidency again, the report says.

The report discloses that Lula had entered last year's presidential
election, but Mr. Moro's arrest order forced him out of the race.

At the time, Mr. Moro was a powerful judge behind the so-called
"Car Wash" corruption investigation, an unprecedented probe that
centred on political bribes from state-run companies, the report
notes.

Lula's arrest paved the way to victory for Brazil's current
right-wing President Jair Bolsonaro, who went on to make Mr. Moro
his justice minister, the report relays.

Mr. Moro has denied any wrongdoing and ignored calls to resign from
his new post, the report discloses.

However, his impartiality was thrown into question following a
series of leaked private messages he allegedly exchanged with
prosecutors before Lula's first conviction in 2017, the report
relays.

The messages, published in The Intercept, appear to show him asking
the prosecutors to publish press releases criticising Lula's
defence, and sharing investigative tips with them when he was
legally obliged to remain impartial, the report notes.

But Brazil's Supreme Court said these messages needed investigating
before they could be admitted as evidence, the report rellays.

"We had already presented countless evidence that the ex-president
did not have a fair, impartial, independent trial," lawyer
Cristiano Zanin Martins told reporters, according to news agency
AFP, the report notes.

"He did not commit a single crime and he has the right to be judged
by an impartial judge," Mr. Martins added.

As reported in the Troubled Company Reporter-Latin America on May
27, 2019, Fitch Ratings has affirmed Brazil's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable
Outlook.




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C H I L E
=========

CORPORACION DEL COBRE: Miner Unions Seek More Consideration
-----------------------------------------------------------
The Latin American Herald reports that leaders of the 3,200
striking workers at the Chuquicamata mine called on Chilean
state-owned Corporacion del Cobre (Codelco) to show "more
flexibility" in negotiating an end to the labor dispute.

"We're willing to reach an agreement at any time," one union
president, Liliana Ugarte, told Radio Cooperativa, adding that
there was only one article on which the two sides had not reached
agreement, according to The Latin American Herald.

Workers at Chuquicamata, one of the largest mines operated by
Codelco, went on strike June 14 after the two parties were unable
to seal a new collective bargaining agreement, the report notes.

"The company has closed itself off to dialogue and making a little
more progress," the report quoted Mr. Ugarte as saying.

Workers rejected Codelco's latest offer by a vote of 1,511 to
1,225.

Codelco offered a benefits package worth 14.1 million pesos (about
US$20,200) per worker, a 1.2 percent wage increase, better working
conditions for new employees and improved severance benefits in a
36-month contract, the report notes.

Chuquicamata is in the process of being converted from an open pit
mine to an underground mine at a cost of about $5.5 billion, making
it one of Codelco's main investment projects, the report relays.

The report notes that Codelco is undertaking several infrastructure
projects aimed at extending the operating lives of its main mines
by about 50 years at a cost of $18 billion.

As part of the overhaul, however, Codelco plans to eliminate the
jobs of about 1,500 workers.

Ugarte said the unions were focusing on four points in the
negotiations, but the sides were close to an agreement on three of
them, the report notes.

The union leader said that, in fact, two of the points "should not
have been in the collective bargaining negotiations because they
are part of the (existing) contract," the report relays.

The most difficult item in the negotiations "has to do with
leveling (the compensation) of new workers, so we can reduce the
(pay) gap," the report quoted Mr. Ugarte as saying.

Codelco's new hires "do the same work as the old ones, but they
don't get the same bonuses," the union leader said, the report
notes.

Ugarte said Codelco was following a government pay policy that does
not take into account the fact "that we work in extreme areas,
saturated, in very tough conditions," the report says.

Mining areas "have the highest cancer rates, and (incidence) of
ortho-muscular diseases, of nervous system diseases. If they have
to even things out, let them do it at the top," the union leader
said, the report notes.

Mining Minister Baldo Prokurica, for his part, said Codelco's
latest proposal "is the highest that the company can make," the
report relays.

The minister called on union leaders to accept reality and reach a
deal, the report says.

Although the strike will continue, starting on the fifth day after
the vote to reject management's latest proposal, individual workers
can agree to accept the offer and return to the mine, the report
adds.

As reported in the Troubled Company Reporter-Latin America on Oct.
23, 2017, Moody's Investors Service raised Corporacion Nacional del
Cobre's (CODELCO)  baseline credit assessment (BCA) to ba1 from
ba2.




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

DOMINICAN REPUBLIC: Fitch Affirms 'BB-' LT IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed Dominican Republic's Long-Term,
Foreign-Currency Issuer Default Rating at 'BB-' with a Stable
Outlook.

KEY RATING DRIVERS

The ratings balance Dominican Republic's favorable macroeconomic
performance and narrow current account deficit with its rising
government debt and off-balance-sheet liabilities, higher net
external debt than 'BB' peers, and limited monetary policy
effectiveness.

Fitch expects GDP growth of 5.8% in 2019, dipping from 7% in 2018,
as private investment growth moderates and consumption remains
robust, supported by a monetary easing in the form of a reduction
in the bank reserve requirement on peso deposits. Fitch expects
post-election fiscal tightening to slow the pace of economic growth
to 5.1% in 2020, while investment accelerates in 2021.

Dominican Republic's macro performance is stronger than the current
'BB' median. The economy's 6.6% five-year average real GDP growth
outpaces the current median of 4.2% while its five-year average
inflation of 2.5% has been lower than the current median of 5.6%.

Public finances are weak relative the the 'BB' category. General
government (GG) debt (Fitch approximates this using non-financial
public sector [NFPS] debt), stands at 40.2% of GDP and is in line
with the current 'BB' median in 2018, but Fitch expects it will
continue to rise gradually over time. The interest burden, at 16.4%
of revenues, is well above 'BB' peers. The low revenue base, 14.9%
of GDP, constrains the government's debt tolerance while the GG
debt/revenue ratio of 270% is high relative to the current 'BB'
median of 155% in 2018.

Off-balance-sheet liabilities are growing as a result of the
central bank's operational losses (averaging 1.4% of GDP per year
during 2014-2018) as well as off-balance-sheet NFPS liabilities
resulting from recurrent electricity system losses, supplier
arrears, and government trust liabilities. Consolidated
public-sector liabilities totaled an estimated 57.1% of GDP at
year-end 2018. The consolidated public-sector liabilities figures
include (figures as of year-end 2018): GG (NFPS) debt excluding the
central bank recapitalization bonds (36.9% of GDP), central bank
debt (15.3% of GDP), accrued supplier arrears (estimated at 1.6% of
GDP based on the 2019 budget), securitized electricity system debt
(estimated at 1.6% of GDP), outstanding public utility arrears to
electricity generators at year-end (1% of GDP) and liabilities of
the RDVial trust for transport infrastructure (0.7% of GDP).

General government deficits (NFPS, excluding central bank
operational losses) have averaged 3.7% of GDP over the past four
years and are larger than the 'BB' median. The GG deficit narrowed
to 2.8% of GDP in 2018 from 3.6% of GDP in 2017 (including the
central government statistical discrepancy and interest payments on
a cash basis from the public credit NFPS debt statistics),
resulting from tax administration gains, lower current transfers
(including central bank recapitalization transfers) and capital
spending. Fitch's base-case expectation is for higher 3.3% of GDP
average GG deficits in 2019-2020 with upward interest costs and an
increase in election-related spending offsetting tax administration
gains and operational savings from a new state-owned electricity
generator.

In Fitch's view, risks to the fiscal outlook are broadly balanced.
On the one hand, the post-electoral period following national
elections in 2020 offers a policy window to legislate for and
implement key reforms. Conversely, further delays in adopting such
reforms will result in a continued rise of government debt and
public-sector liabilities. In the short-term, tail risk of fiscal
slippage exists if the elections are competitive among the main
parties for the presidency and control of congress in May 2020 and
the largest cities amid municipal elections preceding in February
2020. The three key reforms—of public finances, reduction of
financial losses in the electricity system, and central bank
recapitalization—have remained stalled since 2016 despite the PLD
party's control of the presidency and congressional majorities in
the upper and lower chambers due to internal fissures. The main
governing and opposition party platforms support Dominican
Republic's macro institutions and the country's free-market
economic model.

Dominican Republic's fiscal framework is weaker than 'BB' peers
with clear fiscal policy anchors, and the transparency and
risk-management of off-balance-sheet liabilities from the recurrent
electricity system losses and infrastructure projects are weaker
than peers with efficient energy management and clear
public-private partnership (PPP) legal frameworks, respectively.

The government met its financing needs mainly with USD3.1 billion
global bond issuance in 2018, including Dominican Republic's first
peso-denominated global bond. The government repaid a USD500
million maturity, one of its first bonds issued at its re-entry to
the international market, then issued USD2.5 billion global notes
in 2019.

The prominence of the Dominican Republic peso to U.S. dollar
(DOP-USD) exchange rate in public inflation expectations and the
large share of FX-denominated government debt constrain the
effectiveness of monetary policy. Inflation averaged 3.6% yoy in
2018,within the central bank's target band, supported by relative
DOP-USD exchange rate stability and moderate fuel import prices.
Public inflation expectations are anchored within the band,
assuming 3.5%-4.0% annual DOP-USD depreciation. The central bank
increased communications about its inflation-targeting objective.
However, operating losses and mounting securities liabilities
(13.5% of GDP in June 2019, making the institution the largest
domestic issuer) limit monetary policy effectiveness.

Dominican Republic's external finances flow metrics are improving,
but the balance sheet is weaker than the 'BB' median, as a result
of its net external debt/current external receipts (CXR) ratio of
55.5% in 2018, higher than the current 'BB' median. The large
foreign-currency share of government debt (67.7% in 2018) and
import price pass-through to inflation for the island economy
restricts the central bank's exchange rate flexibility.

Other external variables exhibit a positive trend. The current
account deficit remains small (1.4% of GDP in 2018) and financed by
net foreign direct investment (FDI). Fitch expects the current
account deficit to remain less than 2% of GDP during 2019-2021,
supported by moderate oil import prices. Its CXR sources are
diversified although sensitive to the U.S. economic cycle, and its
commodity export dependence is well below the current 'BB' median.


Dominican Republic's external debt service (4.9% of CXR in 2018) is
in line with the category, and its external liquidity is gradually
improving. The international liquidity ratio above 160% in 2018 is
supported by the central bank's gradual foreign reserve
accumulation and the even amortization schedule of international
bond maturities.

The Dominican banking system (multi-service commercial banks) has
adequate average capitalization (15.7% at March 2019) and liquidity
(20.4% of deposits) with low non-performing loans (1.6% of credit)
that are more than 100% provisioned under normal economic stress
conditions. The banking system remains profitable (18.6% average
return on equity at March 2019). Real private credit growth
averaged 9.2% yoy during January 2019-May 2019, consistent with a
high five-year average of 11% yoy for 2014-2018.

Other structural factors are evolving closer to the 'BB' median.
Dominican Republic's per capita income of USD7,920 exceeds the
current 'BB' median of USD6,345 for 2018. The sovereign's
governance, social and ease-of-doing-business percentile rankings
are just below the 'BB' median.

DERIVATION SUMMARY

SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO)

Fitch's proprietary SRM assigns Dominican Republic a score
equivalent to a rating of 'BB+' on the Long-Term Foreign-Currency
(LT FC) IDR scale. Fitch's sovereign rating committee adjusted the
output from the SRM to arrive at the final LT FC IDR by applying
its QO, relative to rated peers, as follows:

  -- Public finances: -1 notch, to reflect weaknesses in the fiscal
structure owing to low revenues and rigidity of large current
expenditures; and material contingent liabilities from ongoing
financial losses of public utilities and the large debt of the
central bank.

  -- External finances: -1 notch, to reflect that net external debt
exceeds the category median. However, Dominican Republic's
commodity dependence is lower, CXR are relatively diversified
(though sensitive to the U.S. economic cycle), and external
liquidity measures are gradually improving.

Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three-year centred
averages, including one year of forecasts, to produce a score
equivalent to a LT FC IDR. Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within
Fitch's criteria that are not fully quantifiable and/or not fully
reflected in the SRM.

KEY ASSUMPTIONS

Fitch assumes that the global economy, international oil prices,
and U.S. Federal Reserve monetary policy perform in line with
Fitch's Global Economic Outlook.

RATING SENSITIVITIES

The Rating Outlook is Stable. The main factors that, individually
or collectively, could lead to a positive rating action are:

  -- Strengthening of the government revenue base and/or
     fiscal consolidation leading to public debt reduction;

  -- Further strengthening of the international reserves position;

  -- Entrenchment of the central bank's inflation-targeting regime
     resulting in greater monetary policy credibility and
     effectiveness.

The main factors that could lead to a negative rating action are:

  -- Increased budget deficits, weaker growth and/or
     crystallization of contingent liabilities leading to
     deterioration in the public debt dynamics;

  -- Emergence of fiscal financing constraints;

  -- Deterioration of the international reserves position and
     current account deficit.


DOMINICAN REPUBLIC: Medina Pledges Help to Avocado Growers
----------------------------------------------------------
Dominican Today reports that President Danilo Medina visited 166
avocado growers at Bohechio, western San Juan province where he
pledged assistance.

He said the Government will help increase planting and will provide
packaging machines to pave the way to export the product, according
to Dominican Today.

The Presidency said Medina also ordered the construction of two
schools and a baseball field, finish the high school and install
the power lines to the community of Guayabal, the report notes.

"President Medina made his surprise 254th visit in Bohechío, which
resulted in a direct dialogue with the men and women of our
interior, promote the associativity, further strengthen the
productive sectors and democratize the wellbeing and development
opportunities," the report relays.

The president asked the farmers to include more members in their
association and promised to increase avocado plantation area from
160 hectares to 630 hectares, the report notes.

                   About Dominican Republic

The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district.

Fitch Ratings affirmed Dominican Republic's Long-Term,
Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable
Outlook in September 2018.

The Troubled Company Reporter-Latin America reported on April 4,
2019 that the Dominican Today related that Juan Del Rosario of the
UASD Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."




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M E X I C O
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BANORTE: Moody's Gives Ba2(hyb) Ratings to $1.1-Bil. Tier I Notes
-----------------------------------------------------------------
Moody's Investors Service assigned definitive Ba2 (hyb) foreign
currency junior subordinated debt ratings to two of Banco Mercantil
del Norte, S.A. (Cayman I)'s (Banorte) perpetual callable
subordinated non-preferred non-cumulative Additional Tier 1 capital
notes, with an optional redemption on the first call date. The
Callable Junior Subordinated Non-Preferred Non-Cumulative Tier 1
Capital Notes were issued through Banorte's Cayman Islands branch,
Banco Mercantil del Norte, S.A. (Cayman Islands). The capital notes
totaled $1.1 billion, split into two tranches of different
maturities and coupons.

LIST OF AFFECTED RATINGS:

The following definitive ratings were assigned to Banco Mercantil
del Norte, S.A.(Cayman I)'s Perpetual Callable Junior Subordinated
Non-Preferred Non-Cumulative Tier 1 Capital Notes issued in two
tranches:

  Long-term foreign currency junior subordinated debt rating of
  Ba2 (hyb) to $600 million 6.75% Perpetual 5-Year Callable
  Junior Subordinated Non-Preferred Non-Cumulative Tier 1 Capital
  Notes (NC5 Notes)

  Long-term foreign currency junior subordinated debt rating of
  Ba2 (hyb) to $500 million 7.5% Perpetual 10-Year Callable
  Junior Subordinated Non-Preferred Non-Cumulative Tier 1
  Capital Notes (NC10 Notes)

RATINGS RATIONALE

Moody's definitive ratings of Ba2 (hyb) for tranche "NC5 Notes" for
$600 million and tranche "NC10 Notes" for $500 million are in line
with the provisional rating assigned on June 11, 2019.

Moody's rating rationale was set out on that date in the press
release and has not changed since then.

WHAT COULD CHANGE THE RATINGS UP OR DOWN

This junior subordinated rating is likely to face downward pressure
if the bank's core capitalization levels significantly decrease or
if its expansion into consumer and commercial lending leads to a
substantial deterioration of asset quality in line with weakening
medium-term economic prospects in Mexico, resulting from
policymaking uncertainty and lower investor confidence.

Upward pressure could accumulate in the assigned junior
subordinated rating if Banorte's asset quality is sustained while
the bank diversifies its loan book into retail in a decelerating
economy while maintaining its ample core capitalization and
profitability levels.


MEXICO: Economic Activity Declines 1.4% in April
------------------------------------------------
The Latin American Herald reports that Mexico's economic activity
declined 1.4 percent in April, compared to the same month in 2018,
due to a slowdown in the manufacturing and service sectors, the
National Institute of Statistics and Geography (INEGI) said.

The figure comes from the Global Economic Activity Index (IGAE),
which shows that the secondary sector of the economy contracted 2.9
percent and the tertiary sector declined 0.80 percent, while the
primary sector grew 1.3 percent, the INEGI said in a statement
obtained by the news agency.

The IGAE, though, rose 0.10 percent in April, compared to the
previous month, on a seasonally adjusted basis, due to an increase
of 1.5 percent in manufacturing and a 2.6 percent drop in the
agricultural sector and a 0.30 percent decline in the service
sector, according to The Latin American Herald.

The IGAE is a preliminary short-term gauge of economic trends in
the country since it does not include all the economic categories
used in calculating the gross domestic product (GDP), the report
relays.

Mexico's GDP contracted 0.20 percent in the first quarter, compared
to the October-December 2018 period, on a seasonally adjusted
basis, the INEGI said, the report discloses.

The report relays that economists and financial institutions have
revised their 2019 economic growth estimates downward several times
and now see Mexico's GDP expanding around 1.5 percent in 2019.

Some analysts have warned that the economy could slip into
recession if US President Donald Trump were to impose tariffs on
Mexico, the report relays.

President Andres Manuel Lopez Obrador, however, is sticking to his
forecast that Mexico's economy will grow at an average annual rate
of 4 percent during his six-year term, which ends in 2024, the
report notes.

On April 1, the Finance and Public Credit Secretariat said it
expected the economy to grow at a real annualized rate of between
1.1 percent and 2.1 percent this year, the report discloses.

The Bank of Mexico revised its GDP estimate downward on May 29 to a
range of between 0.80 percent and 1.8 percent, cutting its previous
projection by 0.30 percentage points, the report notes.

Mexico's GDP grew 2 percent in 2018, marking a slight contraction
from the 2.1 percent economic growth registered the previous year,
the report adds.




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

ARQUIDIOCESIS DE SAN JUAN: Matta Buying Property for $360K
----------------------------------------------------------
Arquidiocesis de San Juan de Puerto Rico asks the U.S. Bankruptcy
Court for the District of Puerto Rico to authorize the sale of the
real located at Punta las Matias, 110 Calle Doncella, esq. Calle
Loiza, San Juan, Puerto Rico, PIN 041-044-169-09-001 to Samuel
Matta for $360,000.

On March 18, 2019, the Court entered an Opinion and Order
dismissing the instant bankruptcy case.  The Debtor has appealed
the Order and the same is pending before the Bankruptcy Appellant
Panel for the First Circuit.  Thereafter, it requested and obtained
a stay pending. However, out of abundance of caution and in order
to maintain the Court informed the Debtor is filing the request for
authorization to sell the Property listed on its Schedules.

The Debtor listed in its Schedules an interest in the property.
The Property is registered as Lot No. 9,536 at page 213, Vol. 375
at the San Juan Property Registry.  The Debtor scheduled the value
of the Property in the approximate amount of $360,000.   The
property has no registered mortgages or secured claims.  The Debtor
acquired the Property via a donation from Mr. Teodoro Vidal
Santoni.

The Debtor has identified the Purchaser as a potential buyer for
the Property in the amount of $360,000.  The parties have entered
into their Purchase Option Agreement.  The Property is being sold
for the same value that was listed on the schedules.  The Debtor
includes a report prepared by Ambientaliz, Inc. that demonstrates
the current value condition of the Property.

The transfer of the Property will be free and clear of liens, and
exempt from the payment of taxes, stamps and vouchers, pursuant to
the provisions of 11 USC 1146, if the transaction for some reason
is delayed and takes place under the Plan of Reorganization.

The Detail of Proceeds and Expenses will be as follows:

      Sale Price                    $360,000

      Stamps and Vounchers             ($496)
      Notaria! Tariff                ($1,800)
      Brokerage Fees                ($14,976)
      CRIM                           ($6,471)
      
      Net Proceeds                  $335,257
      Purchaser Deposit             ($10,600)

      Proceeds at Closing           $325,657
      UST Fees lst Quarter 2019     ($50,000)
                                  ----------
      Net Proceeds                  $275,657

The Property, as of the date, has property tax debt, in the total
amount of $5,975, including the first semester of the year 2019.
Each of the parties to the sale will assume its own payment of
expenses under the provisions of the Notary Law of Puerto Rico.   

The Debtor received from the Purchaser a check in the amount of
$10,800 as a good faith deposit under the purchase option, which
will be applied to the purchase price at the closing if the
Purchaser exercises the option and buys the Property as per the
terms and conditions of the agreement.

Any amounts owed to CRIM will be paid first with the proceeds of
the sale as per the terms and conditions of the agreement.  There
are no common maintenance fees or homeowners' association dues in
relation to the Property, since such association does not exist.

The Debtor submits that the Sale satisfies the sound business
reason test, is a proper exercise of its business judgment, and is
in the best interest of the estate and should be approved.

Any and all proceeds from the sale of the property will be placed
in a DIP bank account to be used to fund the Debtor's Plan of
Reorganization.  From the purchase price the Debtor will pay Stamps
& Vouchers, Notary Fees, brokerage fees, and CRIM.  The Debtor
expects to have proceeds at closing in the approximate amount of
$325,657 which will be held in escrow.

Objections, if any, must be filed within 21 days after service as
evidenced by the certification, and an additional three days
pursuant to Fed. R. Bank. P. 9006(i) if were served by mail.

A copy of the Agreement attached to the Motion is available for
free at:

    http://bankrupt.com/misc/ARQUIDIOCESIS_DE_405_Sales.pdf

           About Arquidiocesis de San Juan de Puerto Rico

Arquidiocesis de San Juan de Puerto Rico -- http://www.arqsj.org/
-- is an unincorporated religious association in San Juan, Puerto
Rico.

Arquidiocesis de San Juan de Puerto Rico, a/k/a Iglesia Catolica
Apostolica Y Romana, Arquidiocesis De San Juan De Puerto Rico,
filed a petition for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D.P.R. Case No. 18-04911) on Aug. 29, 2018.  In the
petition signed by Father Alberto Arturo Figueroa Morales, vicar
general, the Debtor estimated $10 million to $50 million in assets
and liabilities.  Carmen D. Conde Torres, Esq., at C. Conde &
Assoc., is the Debtor's counsel.


DISTRIBUIDORA LEQUAR: Unsecureds to Get $50K Carve Out
------------------------------------------------------
Distribuidora Lequar, Inc., filed a Chapter 11 Plan and
accompanying Disclosure Statement.

Class 3 Holders of Allowed General Unsecured Claims are impaired.
Holders of Allowed General Unsecured Claims, excluding Oriental
Bank's deficiency claim, entitled to vote but not receiving
dividends under this Class, will be paid in full satisfaction of
their claims 2% thereof on the Effective Date from a $50,000 carve
out reserved for this Class.

Class 1 The Claim of Oriental, partially secured by the Debtor's
Properties are impaired. Via Monti will transfer to Oriental
Properties No. l, 2 and 3 with their combined estimated value of
$1,100,000, to be credited to the principal of Oriental's claims
against the Debtor; the Debtor will consent to the application by
Oriental to its claims against the Debtor of the certificate of
deposit held by Oriental in the amount of $125,000, to be credited
to the principal of Oriental's claims; a cash payment of $125,000,
from the proceeds of the sale of the Debtor's inventories.

The Plan considers the sale of all of Debtor's inventories and
miscellaneous assets through an orderly liquidation.  The proceeds
from the sale are estimated between $350,000 and $375,000.

A full-text copy of the Disclosure Statement dated June 12, 2019,
is available at https://tinyurl.com/y3znxsmr from PacerMonitor.com
at no charge.

                About Distribuidora Lequar

Founded in 1963, Distribuidora Lequar, Inc. sells men's, women's
and children's footwear.  It is located in Rio Piedras, Puerto
Rico.

Distribuidora Lequar sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-05107) on Sept. 1,
2018.

In the petition signed by Albert Bejar Bitton, vice-president, the
Debtor disclosed $4,095,449 in assets and $8,011,822 in
liabilities.  Judge Enrique S. Lamoutte Inclan presides over the
case.  Charles A. Cuprill, P.S.C. Law Office is the Debtor's legal
counsel.




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

TRINIDAD & TOBAGO: Lenders Vulnerable to Growing Household Debt
---------------------------------------------------------------
Trinidad Express reports that Trinidad and Tobago the central bank
has identified growing household indebtedness as a vulnerability of
the financial sector, even as it states that the financial system
remains sound.

In its 2018 Financial Stability Report (FSB), the Central Bank
estimated that household debt in T&T stood at $55.6 billion in
2018, which was 4.1 per cent higher than in the previous year,
according to Trinidad Express.


TRINIDAD & TOBAGO: Moody's Affirms Ba1 LT Issuer Rating
-------------------------------------------------------
Moody's Investors Service affirmed the Government of Trinidad &
Tobago's Ba1 long-term issuer and senior unsecured debt ratings and
maintained the stable outlook.

The affirmation of the Ba1 ratings is supported by the following
factors:

  1. Sizeable fiscal buffers, balanced against an elevated debt
ratio relative to peers

  2. Economic recovery driven by the energy sector, but limited
prospects for economic diversification and institutional
constraints limit shock absorption capacity of the economy

  3. Low susceptibility to external financing risks given high
reserve coverage of external debt payments

The stable outlook captures Moody's expectations that risks to the
rating are balanced. On the upside, prospects of a sustained
increase in oil and gas production would materially improve
medium-term growth prospects contributing to fiscal consolidation
efforts, which would stabilize government debt ratios.
Alternatively, institutional constraints continue to limit policy
execution and the country's fiscal profile remains vulnerable to
future commodity price shocks.

Trinidad & Tobago's long-term foreign-currency bond ceiling remains
unchanged at Baa3. The foreign-currency bank deposit ceiling
remains at Ba2, while the local-currency bond and bank deposit
ceilings remain at Baa2. The short-term foreign-currency bond and
bank deposit ceilings remain unchanged at P-3 and Not Prime (NP),
respectively.

RATINGS RATIONALE

RATIONALE FOR THE AFFIRMATION OF THE Ba1 RATINGS

SIZEABLE FISCAL BUFFERS BALANCED AGAINST A STILL ELEVATED DEBT
BURDEN RELATIVE TO PEERS

The decision to affirm Trinidad and Tobago's Ba1 rating is
underpinned by the government's sizeable fiscal buffers, with close
to $6 billion in assets in the Heritage and Stabilization Fund
(HSF) as of fiscal 2018, which is equivalent to over 25% of GDP. A
large stock of liquid assets provides the government fiscal
flexibility when oil prices decline, contributing to lower
government liquidity risk as well as external vulnerabilities. HSF
assets are liquid and can in principle be used to finance the
deficit.

Government debt ratios have stabilized over the past two years, and
Moody's expects the debt burden to remain stable around current
levels, supported by moderate fiscal deficits in the order of 2.5%
to 3.5% of GDP in 2019-20. An increase in energy-related revenue,
along with continued expenditure restraint, underpin these
forecasts.

Although government debt, at 63% of GDP, is above the Ba median of
50%, associated credit risks are mitigated by: (i) the government
balance sheet's limited exposure to exchange rate risk given a
moderate share of foreign-currency-denominated debt (29% of total
government debt); (ii) strong debt affordability despite rising
government debt, with the ratio of interest payments to government
revenues at around 10%; (iii) a low weighted average interest rate
on central government debt, which at 3.68% as of April 2019, is
relatively low for an emerging market economy that relies primarily
on domestic financing and has only a small portion of concessional
debt.

ECONOMIC RECOVERY DRIVEN BY THE ENERGY SECTOR, BUT LIMITED
PROSPECTS FOR ECONOMIC DIVERSIFICATION AND INSTITUTIONAL
CONSTRAINTS LIMIT SHOCK ABSORPTION CAPACITY

After a steep contraction in output, with real GDP declining by 8%
between 2015 and 2017, economic growth has now stabilized. Moody's
expects the economy to expand by around 1.5% in 2019, and to expand
between 1.5%-2.5% over the subsequent two to three years. Increased
gas production beginning in 2017 reversed the long-term decline in
production, and initially supported the economic recovery. Moody's
expects gas production to stabilize as output from new gas fields
offset declining production at existing fields. Exploration in the
energy sector will support growth prospects over the next two to
three years.

However, Moody's sees limited prospects of economic diversification
away from the energy sector. The business environment remains weak
due to structural factors like high crime rates, skills mismatches
in the labor force, limited access to finance, and climate-related
risks, which pose challenges to the development of more robust
non-energy economic sectors. Government bureaucracy also weighs on
the investment climate.

Trinidad's institutional and execution capacity remain a rating
constraint, despite some improvements in the government's policy
response and effectiveness. Spending cuts enacted over the previous
four years -- which amount to a more than 20% reduction in nominal
spending -- have reduced fiscal imbalances and better aligned
spending with revenue. Furthermore, in late 2018, the government
announced a restructuring of state-owned energy company Petrotrin,
which included the closure of its sole refinery, as part of a
broader revamp of Petrotrin's operations. This resulted in the
creation of a new company -- Trinidad Petroleum -- aimed at
improving the company's weak financial position. While there are
risks to Trinidad Petroleum's new business model, Moody's views the
government's decision to close the refinery as a positive step in
improving the operations of one of the country's most important
state-owned companies.

Policy predictability and effectiveness remain constrained by poor
data quality and uncertainty over medium-term fiscal projections,
informing Moody's low assessment of institutional strength. Data
quality remains weak, adversely affecting the timeliness of the
government's policy response to economic shocks and medium-term
planning. Continued reliance on asset sales and dividends from
state-owned enterprises to generate revenue limits the reliability
and predictability of revenue streams, and introduces an element of
uncertainty to medium-term fiscal prospects. Measures to broaden
the tax base and reduce the government's reliance on energy-related
revenue -- e.g., establishment of a single Revenue Authority,
introduction of a property tax -- have had limited success to date
and continue to be subject to prolonged implementation delays.

LOW SUSCEPTIBILITY TO EXTERNAL FINANCIAL RISKS GIVEN HIGH RESERVE
COVERAGE OF EXTERNAL DEBT PAYMENTS

The stock of international reserves continues to provide a
significant financial buffer to external shocks. For instance,
Moody's projects the external vulnerability indicator, which
compares short-term external debt payments to available reserves,
to remain low at 22% in 2019, indicating a high level of coverage
of external debt payments. Despite low external vulnerability risk,
international reserves have declined to $7.3 billion as of April
2019, down from a peak of $11.5 billion in December 2014. Moody's
expects the decline in reserves to continue over the next two
years, despite the presence of a large current account surplus of
around 6% of GDP, driven by financial outflows and significant
errors and omissions. Consequently, the rating agency also expects
continued shortages of foreign exchange in the domestic market,
which affect small and medium-sized enterprises and weigh on
non-energy growth prospects.

WHAT COULD CHANGE THE RATING UP

Over time, a reduction in government debt ratios and improved
fiscal performance, particularly if supported by an increase in
non-energy-related government revenue and improved tax collection
rather than asset sales - or drawing down on fiscal buffers - would
result in an upgrade. Material progress in institutional and
economic reforms that increase competitiveness and the economy's
shock-absorption capacity would also likely result in a higher
rating.

WHAT COULD CHANGE THE RATING DOWN

The rating would be downgraded if government debt ratios were to
materially deteriorate, which would be counter to Moody's
expectations for stable debt ratios. The need for mounting
government support for state-owned enterprises, resulting in a
material increase in government debt, would weaken the government's
balance sheet and likely result in a downgrade. A weakening of the
balance-of-payments position would increase external vulnerability
risks over time, and could also lead to a downgrade.

GDP per capita (PPP basis, US$): 32,254 (2018 Estimate) (also known
as Per Capita Income)

Real GDP growth (% change): 1.4% (2018 Estimate) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 1% (2018 Actual)

Gen. Gov. Financial Balance/GDP: -4.1% (2018 Estimate) (also known
as Fiscal Balance)

Current Account Balance/GDP: 6% (2018 Estimate) (also known as
External Balance)

External debt/GDP: 46.8% (2018 Estimate)

Level of economic development: Low level of economic resilience

Default history: No default events (on bonds or loans) have been
recorded since 1983.

On June 21, 2019, a rating committee was called to discuss the
rating of the Trinidad & Tobago, Government of. The main points
raised during the discussion were: The issuer's economic
fundamentals, including its economic strength, have not materially
changed. The issuer's institutional strength/framework, have
materially increased. The issuer's fiscal or financial strength,
including its debt profile, has not materially changed. The
issuer's susceptibility to event risks has not materially changed.


TRINIDAD PETROLEUM: S&P Affirms 'BB' ICR, Off Watch Negative
------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' ratings on Trinidad and
Tobago-based oil company, Trinidad Petroleum Holdings (TPH). S&P's
also removing the ratings from CreditWatch with negative
implications. S&P assigned a stable outlook, because due to the new
debt structure, it expects the company to repay or refinance
upcoming financial liabilities.

The rating action follows TPH's ability to raise the funds to meet
the principal payment of $850 million on its bonds that mature on
August 25. The company completed an offer to exchange 52.35% of its
outstanding 2019 and 66.82% of its 2022 notes for a new bond
totaling $570 million due 2026. In addition, TPH secured a $603
million term loan, which the company will use to repay the $405
million remainder of its 2019 notes and $175 million in short-term
financial liabilities owed to the government of Trinidad and Tobago
(T&T). As a result, TPH has extended the tenor of its financial
liabilities and extended the tenor of its short-term debt
maturities.

S&P said, "Our ratings on TPH continue to reflect our opinion that
there's a very high likelihood that its owner, T&T
(BBB+/Negative/A-2) would provide timely and sufficient
extraordinary support to the company in the event of financial
distress, given its very important role in T&T's energy and
infrastructure policy as the sole distributor of refined oil
products. This supports a four-notch uplift to TPH's stand-alone
credit profile, which we continue to assess at 'b-'."



                           *********


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
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Chapman, Editors.

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

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