TCRLA_Public/190712.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, July 12, 2019, Vol. 20, No. 139

                           Headlines



A N T I G U A   A N D   B A R B U D A

LIAT: Barbados-Antigua Negotiations Have Broken Down


A R G E N T I N A

TELECOM ARGENTINA: Fitch Rates USD Sr. Unsec. Notes 'B+'
TELECOM ARGENTINA: S&P Assigns 'B+' Rating on New Sr. Unsec. Notes


C H I L E

LATAM AIRLINES: Fitch Raises LongTerm IDR to BB-, Outlook Stable


C O L O M B I A

COLOMBIA: FARC Says Gov't. Fails to Protect Demobilize Rebels


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: June Prices Decline -0.18%, Paced By Transport


J A M A I C A

JAMAICA: Business Confidence Dips In Second Quarter
JAMAICA: NIF Operating at $1.5 Billion Deficit


P U E R T O   R I C O

PUERTO RICO: Ex-Government Officials Arrested in Corruption Probe

                           - - - - -


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A N T I G U A   A N D   B A R B U D A
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LIAT: Barbados-Antigua Negotiations Have Broken Down
----------------------------------------------------
Barbados Today reports that LIAT Ltd., formerly known as Leeward
Islands Air Transport or LIAT, negotiations between Barbados and
Antigua and Barbuda have broken down.

Investigations have revealed that talks between the teams from
Antigua and Barbuda and Barbados, which took place at the Hilton
Hotel lasted only a few hours before stalling, according to
Barbados Today.

The visiting team subsequently left the island without a deal being
reached, the report relays.

Barbados' negotiation team was led by Attorney General Dale
Marshall and also included Minister of Tourism Kerrie Symmonds and
Director of Finance and Economic Affairs Ian Carrington, the report
notes.

While efforts to reach Marshall proved unsuccessful, according to
reports, the home team was not impressed with what Antigua and
Barbuda brought to the negotiating table, the report discloses.

A source out of Antigua and Barbuda told Barbados TODAY said it did
not appear a deal would be struck anytime soon.

"The outcome so far does not reflect that the two sides are
anywhere close to Barbados selling even a portion of its sales. It
does not look probable for the near future," the source added, the
report notes.

The source revealed that among the sticking points to Barbados
selling its 49.4 per cent majority stake in LIAT was Prime Minister
Mia Mottley's insistence that Antigua and Barbuda would have to
take up Barbados' almost $100 million loan commitments, the report
notes.

That debt is due mainly to a loan from the Caribbean Development
Bank (CDB) which was used to purchase three LIAT aircraft, the
report says.

Additionally, the well-placed source said Barbados' negotiators had
also asked for a guarantee from St John's that LIAT staff in
Brigetown would not be sacrificed at the expense of staff from
Antigua and Barbuda, the report notes.

The report discloses that the source pointed out that Barbados was
not fearful of LIAT pulling any of its flights from the island, as
Barbados accounted for five of the six profitable routes travelled
by the cash-strapped regional airline.

"Any move to pull LIAT flights out of Barbados would lead to an
immediate collapse of the airline," the source maintained, the
report relays.

LIAT serves 15 Caribbean destinations with almost 500 flights.

The breakdown in talks has come just over a month after Prime
Minister of Antigua and Barbuda Gaston Browne announced that
Barbados had agreed to sell almost all of its shares, the report
relays.

The sale would make Antigua and Barbuda, which currently has a 34
per cent ownership in LIAT, the majority owner, the report relays.

Following Browne's declaration and after weeks of speculation,
Mottley revealed Government's plans to sell its shares, the report
notes.

In explaining her reasons for offering the shares for sale, the
Prime Minister maintained that Barbados simply was not in a
financial position to support LIAT due to the country's current
economic position and as a result had made a decision to "take a
step back," the report says.

While admitting the regional airline was in need of an overhaul,
the Prime Minister promised that Barbados would continue to support
intra-regional travel, the report relays.

"The current model which LIAT has within the 1974 limited is not an
attractive model and what is needed is significant restructuring;
indeed a new model of governance, a new financial model and a new
operational model in order for it to be able to extract greater
benefits and provide the services which it does," Mr. Mottley said
at the time, 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.




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A R G E N T I N A
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TELECOM ARGENTINA: Fitch Rates USD Sr. Unsec. Notes 'B+'
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Fitch Ratings has assigned a 'B+'/'RR3' rating to Telecom Argentina
S.A.'s USD senior unsecured notes. Fitch expects that the proceeds
from the issuance will primarily refinance existing debt, with the
remainder for general corporate purposes. No other rating actions
have been taken.

On May 6, 2019, Fitch affirmed Telecom Argentina S.A.'s ratings,
including the Long-Term Foreign Currency (FC) Issuer Default Rating
(IDR) at 'B' and the Local Currency (LC) IDR at 'BB-', as the
company's credit quality remains stable despite macroeconomic
stress in Argentina. Telecom Argentina's ratings reflect the
company's business position as the leading integrated telecom
operator in Argentina. The company benefits from a robust financial
profile, underpinned by its operational cash flow generation and
relatively conservative capital structure.

Telecom Argentina's 'B' FC IDR is constrained by Argentina's 'B'
Country Ceiling, while the 'BB-' LC IDR is two notches above the
sovereign, reflecting the company's strong underlying credit
profile. The Negative Outlook mirrors the Rating Outlook on the
sovereign. Telecom Argentina's senior unsecured notes Recovery
Rating of 'RR3' reflects good recovery prospects in the event of
default given the company's solid balance sheet and cash flow
generation.

KEY RATING DRIVERS

LC IDR above Sovereign Rating: Telecom Argentina's 'BB-' LC IDR
reflects its strong financial profile and solid business position.
Following the merger, Telecom Argentina is the leading convergent
telecom provider in Argentina; the combined entity benefits from
increased operating scale, enhanced product offerings, and cost
synergies, all of which support Telecom Argentina's cash flow
generation. The company's USD5 billion investment plan, which
foreign competitors are not expected to match, should solidify the
company's prospects in the medium term.

FC IDR Capped by Country Ceiling: Telecom Argentina's FC IDR is
constrained by Argentina's 'B' Country Ceiling. Fitch believes that
the company's default would most likely be driven by transfer and
convertibility restrictions, not by a material deterioration of the
company's business or financial profile. In cases where there is a
two notch gap between the FC and LC IDRs, Fitch's criteria allows
for recovery ratings to be notched above the Argentina soft cap of
'RR4'; therefore, Fitch has assigned a recovery rating of 'RR3' to
the notes, enabling a rating uplift of one notch to 'B+'.

Robust Financial Profile: Telecom Argentina's financial structure
is among the strongest of Fitch-rated telecom companies in the
region, due to the company's conservative capital structure and
consistent EBITDA margins. Fitch forecasts total adjusted debt
(including capitalized operating leases)/EBITDAR to increase to
around 1.8x-2.0x in the medium term, up from 1.7x as of YE 2018,
and 0.7x in 2017 (pro forma for merged entity, including IAS29
adjustments) as the company is able to mostly pass through
inflation to consumers. The company's stable margins and
operational cash flow generation enable it to cover its capital
outlays, which Fitch expects to remain around 20%-25% of revenues.

Leading Provider in Mature Market: Competitive dynamics and price
sensitivity in the fixed line markets mean that the company is
generally able to pass on inflation there. The company has
subscriber shares of approximately 32% in mobile, 49% in broadband,
and 35% in pay TV. These competitive strengths help the company
offset a relatively mature telecommunications market in Argentina,
where Fitch estimates that penetration rates exceed 130% for
mobile, 63% for broadband, and 70% for pay TV. These factors will
contribute to limited growth headroom going forward, although the
market hasn't experienced the same level of price competition as
other countries in the region.

Adequate Liquidity and Low Refinancing Risk: Despite the
macroeconomic turmoil in Argentina beginning in mid-2018, the
company has consistently been able to access international
financing on an unsecured basis. Telecom Argentina has consistently
accessed funding since the beginning of 2018, and Fitch expects
refinancing risk to remain low, despite the company's relatively
short-dated amortization profile. The company's liquidity position
is further supported by its operational cash flow generation, as
well as the high proportion of its cash and investments in dollars,
which provide a natural hedge to FX risk. Fitch does not expect
shareholder distributions to compromise the company's liquidity.

DERIVATION SUMMARY

The company's business profile as the leading convergent player in
the country is stronger than diversified speculative grade peers in
the 'B' category, such as Oi (B-/Stable), 'BB' category peers such
as Millicom International Cellular (BB+/Stable). The company's
financial profile, especially leverage, compares well with
investment grade peers such as Telefonica Moviles Chile S.A.
(BBB+/Stable).

The majority of the company's operations and assets are in
Argentina, an operating environment which is characterized by
macroeconomic instability. The company has largely been able to
pass through inflation to consumers; however, ongoing recessionary
pressure remains a key credit concern. Telecom Argentina's FC IDR
is capped by the 'B' Country Ceiling of Argentina. The company's LC
IDR is rated 'BB-', two notches above the sovereign LC IDR,
reflecting the company's underlying credit profile. Telecom
Argentina's Negative Outlook reflects the Rating Outlook on
Argentina.

KEY ASSUMPTIONS

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

  -- Inflation of 35%-40% in 2019, 20%-25% in 2020, and 15%-20% in
2021, which the company will be able to mostly pass on, depending
on the business segment;

  -- Continued peso devaluation with year-end USDARS of 47 in 2019,
52 in 2020, and 55 in 2021;

  -- EBITDA margins in the low 30% range as the company has
demonstrated an ability to maintain margins;

  -- Capital intensity of approximately USD1.0 billion per year
over the medium term;

  -- Some deterioration in working capital position as bad debt
expenses rise and consumers and suppliers lengthen their payment
cycles;

  -- Dollar-denominated debt levels to remain around USD2.1
billion- USD2.3 billion as the company successfully refinances
maturing debt.

Fitch believes that the company's default would be driven by
transfer and convertibility restrictions imposed by the Republic of
Argentina on the payment of foreign debt, not by a material
deterioration of the Telecom Argentina's business or financial
profile. The company's conservative financial structure and
competitive position enable sufficient operational cash flow
generation to cover ongoing operational expenses, interest
expenses, and maintenance capex in the foreseeable future. Fitch
believes that refinancing risk is low, as the company has
repeatedly refinanced dollar loans on an unsecured basis, despite
severe peso devaluation, and that the company will continue to have
access to debt markets. All of these factors support an LC IDR of
'BB-', two notches above the FC IDR of 'B'.

Fitch applies soft caps to instrument ratings for a given
jurisdiction, reflecting the agency's view that average recoveries
are likely to be lower in regimes that are debtor friendly and/or
have weak enforceability of creditors' rights. Argentine issuers
are generally subject to Recovery Ratings of up to 'RR4'; however,
Fitch's criteria allows for recovery ratings to be notched above
the 'RR4' soft cap, in cases where there is a two notch gap between
the FC and LC IDRs. Therefore, Fitch has assigned a recovery rating
of 'RR3' to the notes, enabling a rating uplift of one notch to
'B+'.

RATING SENSITIVITIES

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

  -- An upgrade to the FC IDR is unlikely in the near term, as the
rating is constrained by the country ceiling of Argentina;

  -- An upgrade to the LC IDR is unlikely in the near term, as
company's operations and assets are located in Argentina

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

  -- A downgrade for Telecom Argentina due to operational
deterioration is unlikely; however, the FC ratings would be
downgraded in case of a downgrade of Argentina's sovereign rating

LIQUIDITY

Adequate Liquidity, Low Refinancing Risk: As of March 31, 2018,
Telecom Argentina held cash and short-term investments of
approximately ARS15.4 billion (USD355 million), against the current
portion of long-term debt plus accrued interest of approximately
ARS19.7 billion (USD454 million). The liquidity position is
supported by robust operational cash flow generation, which Fitch
expects to be sufficient to cover capital expenditures.

The company has low refinancing risk, as evidenced by its continued
ability to execute refinancing transactions since the start of the
Argentine crisis. In March, the company executed various
refinancing transactions, including a a loan agreement with the
International Finance Corporation in March for an amount of up to
USD450 million, along with a note issuance of PYG120 million (USD20
million). In May, the company announced a new seven year credit
facility for up to USD96 million.

Fitch does not expect shareholder returns to compromise the
company's liquidity position. Fitch assumes the company will pay
announced dividends of approximately ARS6.3 billion for 2019.

FULL LIST OF RATING ACTIONS

Fitch has assigned the following ratings

Telecom Argentina S.A.

  -- USD Senior Unsecured Notes B+/RR3


TELECOM ARGENTINA: S&P Assigns 'B+' Rating on New Sr. Unsec. Notes
------------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue rating on Telecom
Argentina S.A.'s (Telecom; B+/Stable/--) proposed senior unsecured
notes with a five-year maturity.

Telecom will use the proceeds mostly for refinancing and capital
expenditures (capex). Telecom has an ambitious capex plan for $5.0
billion between 2018 and 2022 to enhance mobile infrastructure,
continue to deploy 4G and fiber optic cable, expand and improve
connectivity infrastructure, and upgrade and integrate its IT
platform.

S&P said, "The rating on the notes is the same as the issuer credit
rating on Telecom because we don't believe there's significant
contractual or structural subordination. We estimate priority debt
represents only about 3% of consolidated financial obligations pro
forma of the proposed notes.

"Our 'B+' rating on Telecom reflects its solid market position as
the leading telecommunications and first fully convergent (with
fixed and mobile telecommunication, pay TV, and internet services
all integrated) operator in Argentina. The rating also reflects the
company's relatively low leverage for the current rating level.
Despite its large capex plans and the weaker economic conditions in
Argentina, we expect Telecom's business to remain resilient, with
good operational cash flow generation and debt-to-EBITDA hovering
between 1.4x and 1.8x in 2019 and 2020.

"The 'B+' rating on Telecom and its proposed notes is above the 'B'
sovereign foreign currency rating on Argentina, reflecting our view
that there's a considerable likelihood that the company wouldn't
default in a simulated stress scenario that we would expect to
accompany a sovereign default. On the other hand, the 'B+' rating
on Telecom Argentina is below its 'bb+' stand-alone credit profile.
We cap the rating at Argentina's transfer and convertibility (T&C)
assessment because only about 5% of the company's revenues and
EBITDA come from operations outside Argentina, which we believe
would not be enough to cover full foreign currency commitments if
the sovereign were to restrict access to foreign exchange."




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LATAM AIRLINES: Fitch Raises LongTerm IDR to BB-, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has upgraded LATAM Airlines Group S.A.'s Long-Term
Foreign Currency Issuer Default Rating to 'BB-' from 'B+', and the
unsecured notes of LATAM Finance Limited to 'BB-'/'RR4' from
'B+'/'RR4'. Fitch has also affirmed LATAM's national scale
long-term rating at 'BBB+(cl)'. The Corporate Rating Outlook was
revised to Stable from Positive.

The upgrade reflects improvements in LATAM's credit risk profile
during the past two years and Fitch's expectation of additional
deleveraging through 2020. LATAM's solid financial flexibility due
to adequate liquidity and credit lines were also considered in the
ratings upgrades.

LATAM's ratings are supported by its diversified business model and
strong regional market position. Fitch's base case forecasts
indicate LATAM's total and net leverage moving toward 4.5x and 4.0x
by 2020, respectively. A more favorable business environment in
Brazil, fleet renewal plan and cost reduction initiatives
implemented over the past quarters should bolster operating cash
flows. Headwinds that need to be navigated include a weak Argentine
market, higher fuel prices and softer currencies in a number of
markets.

KEY RATING DRIVERS

Market Position and Diversification: Fitch views LATAM's strong
business position as sustainable in the medium term, based on its
diversification within Latin America and in the international
routes between Latin America and either North America, Europe,
Oceania or Africa. The ratings incorporate the company's No. 2
market position in Brazil's domestic market and its position as the
leader among Brazilian companies in international markets.
International passengers accounted for 46% of revenues in 2018; the
company's next most important business segments were the Brazilian
domestic market, Spanish-speaking countries' (SSC) domestic markets
and the cargo divisions. These three businesses accounted for 22%,
16% and 11%, respectively, of the company's total revenue.

Margin Improvement: For 2019, Fitch expects LATAM's EBIT margin
(excluding impacts of IFRS16) to be 7.2% and closer to 8% during
2020. This compares with 6.8% during 2018. The Brazilian market is
expected to continue to be an improving market for LATAM with the
exit of Avianca Brasil leading to improved capacity utilization for
the company and better pricing conditions. LATAM has been efficient
in improving its cost structure, excluding fuel. During
first-quarter 2019, cost per available seat kilometre (CASK)
ex-fuel was USD4.5 cents which positively compares with USD4.7
cents during 2018 and USD5.2 cents in 2017. Cost reductions have
been key to offset fuel price increases and local currency
depreciations.

Deleveraging by 2020: LATAM's gross adjusted leverage, measured as
total adjusted debt/EBITDAR, was 5.0x at Dec. 31, 2018, slightly
better than the 2017 level (5.2x), and a major improvement from the
average of 6.3x in 2015-2016. Fitch's base case scenario indicates
LATAM's gross and net leverage at around 4.9x and 4.3x in 2019 and
4.6x and 4.0x in 2020. The company's total adjusted debt was USD11
billion at Dec. 31, 2018. This debt includes USD7.3 billion of
on-balance-sheet debt and USD3.7 billion of off-balance-sheet
obligations related to operating leases with combined rental
payments of approximately USD538 million in the Dec. 31, 2018.
Fitch's leverage calculations do not consider IFRS16.

Neutral to Positive FCF: Managing growth capex in the next two
years will be the key to allow a more robust FCF generation and
deleveraging trends. Fitch expects LATAM's FCF margin to be neutral
to positive during 2019-2020, driven by revenue growth, continued
EBITDAR margin improvement and targeted capex levels. LATAM
reported FCF of USD340 million during 2018, which considers USD1.2
billion in cash flow from operations (after net cash interest
paid), USD757 million in total capex, and paid dividends around
USD73 million. Fitch's base case scenario for 2019 includes the
cash disbursement of USD325 million related to the Multiplus
transaction and additional non-recurring capex related to retrofit
cabins plan and clients experience improvements.

Strong Credit Linkage: LATAM maintains indirectly all of the
economic rights and 51% of the voting rights in TAM. The ratings of
LATAM and TAM also incorporate the strong credit linkage between
the entities, with significant legal, operational and strategic
ties. In addition, the financing of the combined fleet plan capex
is implemented through LATAM, with the new aircraft being subleased
to TAM. Furthermore, the view of strong legal ties between LATAM
and TAM is supported by cross-default clauses incorporated in
LATAM's USD500 million unsecured notes due in 2020, and LATAM
Finance Limited's USD700 million unsecured notes due in 2024 and
USD600 million unsecured notes due in 2026.

Equity Rating: The equity rating of LATAM is based on the good
performance of the stock market variables, which show high
liquidity. This translates into a 100% presence, a market
capitalization of USD5.8 billion and an average volume of shares
transacted in the last month of USD3.4 million, based on
information as of July 2019. This rating is limited by the
solvency, considering its national long term scale rating in
'BBB+(cl)'.

DERIVATION SUMMARY

LATAM's 'BB-' rating is higher than the ratings of the two main
regional players in Latin America GOL Linhas Aereas Inteligentes
S.A. (B+/Stable) and Avianca Holdings S.A. (B-/Watch Negative).
LATAM is well positioned in the 'BB' rating category relative to
its regional peers given its diversified business model,
significant regional market position and strong financial
flexibility regarding liquidity ratios plus commitment stand-by
credit facility as well strong access to credit market. These
positive factors are tempered by the company's still-high gross
adjusted leverage and operational volatility related to some key
markets.

LATAM is rated lower than global players Delta Air Lines
(BBB-/Stable), United Continental Holdings, Inc. (BB/Stable), and
at the same level of American Airlines Group, Inc. (BB-/Stable),
primarily due to the company's higher financial leverage and weaker
profitability. Liquidity is a key credit factor, as LATAM has
consistently maintained a stronger liquidity position, measured as
cash plus committed credit lines over LTM revenues, compared with
regional peers reducing exposure to refinancing risks.

KEY ASSUMPTIONS

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

  -- Consolidated RPK of 5%;

  -- Low single-digit decline in yield for 2019 and slightly
improvement in 2020 and load factor in the 81%-83% range;

  -- EBIT margin of 7%-8% in 2019/2020;

  -- 2019-2020 neutral to positive FCF generation;

  -- Liquidity, measured as readily available cash plus unused
committed credit facilities over LTM net revenue, moving around 18%
in 2019-2020.

KEY RECOVERY RATING ASSUMPTIONS

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

Going-Concern Approach: LATAM's going concern EBITDA is based on an
average of 2014-2018 EBITDA that reflects a scenario of intense
volatility in the airline industry in Latin America and Brazil,
plus a discount of 20%. The going-concern EBITDA estimate reflects
Fitch's view of a sustainable, post-reorganisation EBITDA level,
upon which Fitch's bases the valuation of the company. The
EV/EBITDA multiple applied is 5.5x, reflecting LATAM's strong
market position in the Latin America market.

Fitch applies a waterfall analysis to the post-default enterprise
value (EV) based on the relative claims of the debt in the capital
structure. The agency's debt waterfall assumptions take into
account the company's total debt at Dec. 31, 2018. These
assumptions result in a recovery rate for the unsecured bonds
within the 'RR4' range, which, per Fitch's criteria, leads to
equalization of the rating to the IDR.

RATING SENSITIVITIES

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

  -- Adjusted debt/EBITDAR sustained below 4x;

  -- FFO fixed-charge coverage sustained around 3x;

  -- Sustainable positive FCF generation;

  -- Liquidity, measured as cash/LTM revenues, consistently above
20%.

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

  -- Sustained negative FCF;

  -- Liquidity, measured as cash/LTM revenues, consistently below
15%;

  -- Total adjusted debt/EBITDAR sustained above 5.0x and/or net
adjusted debt/EBITDAR above 4.5x.

LIQUIDITY

Adequate Liquidity: Fitch views the company's liquidity position as
key rating factor and Fitch expects LATAM to remain proactive on
its liability management strategy in order to avoid refinancing
risks. LATAM held cash of USD1.5 billion as of March 31, 2019,
compared with short-term debt of USD935 million, excluding USD855
million of leases obligations. During February 2019, the company
completed a USD600 million unsecured bond issuance as part of its
ongoing liability management strategy. LATAM has in place a senior
secured revolving credit facility (RCF) of USD575 million as of
March 31 2019), which has combination of aircraft, spare engines
and spare parts as collateral. Including the RCF, the company's
level of liquidity, measured as total cash and marketable
securities plus unused committed credit lines over LTM revenue, was
20.9% as of March 31, 2019. LATAM faces debt amortizations of USD1
billion and USD1.6 billion during 2019 and 2020, respectively,
which will be primarily addressed through a combination of FCF
generation and actively liability management strategy.

FULL LIST OF RATING ACTIONS

Fitch has upgraded the following ratings:

LATAM Airlines Group S.A.'s

  -- Long-Term Foreign Currency IDR to 'BB-' from 'B+';

  -- USD500 million senior unsecured note due 2020 to 'BB-'/'RR4"
from 'B+'/'RR4'.

LATAM Finance Limited Limited

  -- USD700 million senior unsecured note due 2024 to 'BB-'/'RR4'
from 'B+'/'RR4';

  -- USD600 million senior unsecured notes due 2026 to BB-'/'RR4'
from 'B+'/'RR4'.

Fitch has upgraded and withdrawn the following ratings:

TAM S.A.

  -- Long-Term Foreign Currency IDR to 'BB-' from 'B+';

  -- Long-Term Local currency IDR to 'BB-' from 'B+'.

TAM Linhas Aereas S.A.:

  -- Long-Term Foreign Currency to 'BB-' from 'B+';

  -- Long-Term Local currency to 'BB-' from 'B'.

The rating has been withdrawn for commercial reasons.

The Corporate Outlook was revised to Stable from Positive.


Fitch has affirmed the following ratings:

LATAM Airlines Group S.A

  -- National Equity Rating at 'Primera Clase Nivel 3 (cl)';

  -- National Scale Long-Term Rating at 'BBB+(cl)'/Stable Outlook;

  -- Unsecured notes at 'BBB+(cl)'/Stable Outlook.




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C O L O M B I A
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COLOMBIA: FARC Says Gov't. Fails to Protect Demobilize Rebels
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EFE News reports that a lawmaker with the political party formed
after the demobilization of the FARC rebel group said that the
Colombian government has failed in its obligation to protect
guerrillas who laid down their arms under the November 2016 peace
accord.

"The state has not managed to guarantee the lives of those of us
who signed the peace," Sen. Julian Gallo of the Common Alternative
Revolutionary Force, also known by the acronym FARC, said after
filing a criminal complaint with the Attorney General's Office,
according to EFE News.




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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: June Prices Decline -0.18%, Paced By Transport
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Dominican Today reports that June prices in the Dominican Republic
declined -0.18% compared with May, placing the accumulated
inflation in the first half January-June at 1.17%, the Central Bank
revealed.

"With this result, year-on-year inflation, measured from June 2018
to June 2019, stood at 0.92%, remaining below the lower limit of
the target range of 4.0% ± 1.0% established in the Monetary
Program," the Central Bank said on its website, according to
Dominican Today.

"Regarding annualized core inflation, it stood at 1.95%. This
indicator estimates inflationary pressures of monetary origin,
isolating the effects of exogenous factors, by excluding from the
general CPI some agricultural goods whose prices tend to be
volatile, alcoholic beverages, tobacco, fuels, and managed and
transport services, allowing in this way, extract clearer signals
for the conduct of monetary policy," it said, the report notes.

It adds that the analysis of the performance of the CPI reveals
that the groups which most contributed to the negative inflation in
June 2019 were Transport (-1.23%) and Housing (-1.44%), the report
adds.

                    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.

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."

An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.

Standard & Poor's credit rating for Dominican Republic stands at
BB- with stable outlook (2015). Moody's credit rating for Dominican
Republic was last set at Ba3 with stable outlook (2017). Fitch's
credit rating for Dominican Republic was last reported at BB- with
stable outlook (2016).




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

JAMAICA: Business Confidence Dips In Second Quarter
---------------------------------------------------
RJR News reports that business confidence in Jamaica dipped to
150.7 points in the second quarter of 2019.

The Jamaica Chamber of Commerce released the 2nd quarter 2019
Business & Consumer Confidence Indices, according to RJR News.

The first quarter index was 151.3 points, the report relays.

Larry Watson, the immediate past president of the JCC, said the
second quarter's report findings clearly show that crime and
foreign exchange rates are a major concern, the report notes.

Consumer Confidence, on the other hand, strengthened in the second
quarter of 2019, recording 183.4 points up from 177.5 in the first
quarter, the report discloses.

This was due to several factors including, consumers expecting new
jobs and positive views of government's initiatives, the report
adds.

                        About Jamaica

Jamaica is an island country situated in the Caribbean Sea. It is
the fourth largest country in the Caribbean.

Standard & Poor's credit rating for Jamaica stands at B with
positive outlook. Moody's credit rating for Jamaica was last set at
B3 with positive outlook. Fitch's credit rating for Jamaica was
last reported at B+ with stable outlook.

As reported in the Troubled Company Reporter-Latin America on June
27, 2019, RJR News said that Steven Gooden, Chief Executive Officer
of NCB Capital Markets, is warning that the increasing liquidity in
the Jamaican economy might result in heightened risk to the
financial market if left unchecked.  This, he said, is against the
background of the local administration seeking to reduce the debt
to GDP to 60% by the end of the 2025/26 fiscal year, which will see
Government repaying more than J$600 billion which will get back
into the system, according to RJR News.


JAMAICA: NIF Operating at $1.5 Billion Deficit
----------------------------------------------
RJR News reports that it has been revealed that the Jamaican
National Insurance Fund (NIF) is now operating at a $1.5 billion
deficit.

The NIF manages collections from the National Insurance Scheme
(NIS), according to RJR News.

Social Security Minster Shahine Robinson said efforts are underway
to protect the NIF's viability, the report relays.

"With a pension population of around 121,000, the NIS disbursed
$19.4 billion in benefits, receiving only $17.9 billion in
contribution.  Mr. Speaker, there remains a gap of $1.5 billion. As
our eyes remain fixed on the scheme's viability, the procurement
process has commenced to undertake an updated actuarial review
during this financial year," she revealed, the report notes. She
was speaking in the House of Representatives.

                   NIF Net Assets Increase

The Social Security Minister said, as at March 31 this year, the
net asset value of the fund was $120.7 billion - an increase of
13.67 per cent over the 2017/2018 fiscal year, the report relays.

The growth in the NIF's net assets was driven primarily by the
performance of the equity portfolio which grew by 31.3 per cent,
the report notes.

But Mrs. Robinson revealed that less than 50 per cent of the
workforce contributes to the NIS, the report discloses.

She said this is unacceptable, especially with Jamaica's aging
population, the report adds.

                        About Jamaica

Jamaica is an island country situated in the Caribbean Sea. It is
the fourth largest country in the Caribbean.

Standard & Poor's credit rating for Jamaica stands at B with
positive outlook. Moody's credit rating for Jamaica was last set at
B3 with positive outlook. Fitch's credit rating for Jamaica was
last reported at B+ with stable outlook.

As reported in the Troubled Company Reporter-Latin America on June
27, 2019, RJR News said that Steven Gooden, Chief Executive Officer
of NCB Capital Markets, is warning that the increasing liquidity in
the Jamaican economy might result in heightened risk to the
financial market if left unchecked.  This, he said, is against the
background of the local administration seeking to reduce the debt
to GDP to 60% by the end of the 2025/26 fiscal year, which will see
Government repaying more than J$600 billion which will get back
into the system, according to RJR News.




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

PUERTO RICO: Ex-Government Officials Arrested in Corruption Probe
-----------------------------------------------------------------
Luis Valentin Ortiz at Reuters reports that two former high-ranking
Puerto Rico government officials were among six people arrested and
charged with conspiracy and other crimes in connection with
millions of dollars in federal education and Medicaid funds, U.S.
law enforcement officials said.

The six are accused of stealing federal money through various
government contracts that were awarded as part of corrupt bidding
processes, according to Reuters.

The arrests come as the bankrupt U.S. territory is seeking to
obtain more federal money that it needs for post-Hurricane Maria
reconstruction and for increased Medicaid funding, the report
notes.

Puerto Rico has been in U.S. District Court since 2017 using a form
of bankruptcy to restructure about $120 billion of debt and pension
obligations, the report relays.

Julia Keleher, who headed Puerto Rico's education department until
April, and Angela Avila-Marrero, executive director of Health
Insurance Administration, who left the job last month, used their
positions to "benefit and enrich themselves through fraud and the
theft of government funds," according to the 32-charge indictment
relating to $15 million in federal funds, the report relays.

The report notes that Keleher was arrested in Washington.

Jose Soto, deputy director of the U.S. Department of Health and
Human Services' Office of Inspector General overseeing Puerto Rico,
said part of the scheme involved an agency that manages Medicaid
funds, adding that his office will "make recommendations" to the
Centers for Medicaid and Medicare Services, the report relays.

A U.S. House subcommittee is scheduled to take up new legislation
that would increase federal Medicaid funding for Puerto Rico by $12
billion over four years, the report discloses.

Jenniffer Gonzalez, Puerto Rico's nonvoting representative in the
U.S. Congress, said in an emailed statement that the indictments
pose another challenge to procuring needed funding for the island,
which was hit by devastating hurricanes in 2017, the report
relays.

She said, "things like these make the process of obtaining and
disbursing funds, and of making decisions on programs, even harder
at all levels," the report notes.

U.S. Representative Raul Grijalva, a Democrat from Arizona who
chairs the House National Resources Committee, which oversees U.S.
territories, called on Governor Ricardo Rossello to restore
credibility, the report discloses.

"Governor Rossello has little time and much to do to restore public
faith in his government, and I urge him to take a housecleaning
approach as quickly and thoroughly as possible," Grijalva said in a
statement obtained by the news agency.

Rossello, who law enforcement officials said was not implicated in
the indictment, issued a statement that his administration "will
not tolerate corruption" and pledged to cooperate with law
enforcement, the report adds.

                       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.



                           *********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

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delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000.
.


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