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       T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Wednesday, August 21, 2019, Vol. 20, No. 167

                           Headlines



A R G E N T I N A

ARGENTINA: 5-Yr. CDS Climb 77 bps as New Treasury Minister Sworn In
ARGENTINA: Bonds Eyeing Lows on Flurry of Negative Headlines


B R A Z I L

BRAZIL: Negotiating US$500MM Loan With New Development Bank
BRAZIL: Prepared to Overcome a World Economic Recession
OI SA: Largest Shareholder Requests CEO Change


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Agro Eyes US$320BB Organic Fruit/Veggie Market


M E X I C O

MAXCOM TELECOMUNICACIONES: Files for Bankruptcy in U.S.


P E R U

NAUTILUS INKIA: Fitch Affirms 'BB' IDRs, Outlook Negative


P U E R T O   R I C O

IMR SECURITY: Case Summary & 8 Unsecured Creditors
UNIVERSITY OF THE SACRED HEART: Moody's Affirms Ba3 Rating on Bonds


V E N E Z U E L A

VENEZUELA: Oil Output Slump Continues; Embargo Deters Foreign Trade

                           - - - - -


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A R G E N T I N A
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ARGENTINA: 5-Yr. CDS Climb 77 bps as New Treasury Minister Sworn In
-------------------------------------------------------------------
Tom Arnold at Reuters reports that the cost of insuring against an
Argentine sovereign default climbed Aug. 20 as Hernan Lacunza was
sworn in as the new treasury minister of the crisis-hit country.

Argentine 5-year credit default swaps (CDS) were quoted by IHS
Markit at 2,990 basis points (bps), up 77 bps from Aug. 19's
closing level of 2,913 bps, according to Reuters.  Markit
calculations, based on Aug. 19's closing prices, estimate a 82%
probability of a sovereign default within the next five years, the
report notes.

Minutes after being sworn in, Lacunza said Argentina will stand by
the 2019 fiscal targets it had agreed with the International
Monetary Fund and work to stabilise its currency, which shed 18% of
its value last week, the report relays.

                       About Argentina

As reported in the Troubled Company Reporter-Latin America on Aug.
20, 2019, Fitch Ratings has downgraded the sovereign ratings of
Argentina, including its Long-Term Foreign-Currency Issuer Default
Rating to 'CCC' from 'B'. The downgrade reflects elevated policy
uncertainty following the Aug. 11 primary elections, a severe
tightening of financing conditions, and an expected deterioration
in the macroeconomic environment that increase the likelihood of a
sovereign default or restructuring of some kind.

On Aug. 16, 2019, S&P Global Ratings lowered its long-term foreign
and local currency sovereign credit ratings on Argentina to 'B-'
from 'B'. The outlook is negative. S&P said, "We also affirmed our
'B' short-term foreign and local currency sovereign credit ratings.
At the same time, we placed our 'raAA-' national scale rating on
Argentina on CreditWatch with negative implications and lowered our
transfer and convertibility assessment to 'B' from 'B+'."

On July 16, 2019, Moody's Investors Service changed the outlook for
the Government of Argentina to negative from stable. Concurrently,
Moody's has affirmed the B2 foreign-currency and local-currency
long-term issuer and senior unsecured ratings. The senior unsecured
ratings for shelf registrations were also affirmed at (P)B2. At the
same time Argentina's short-term rating was affirmed at Not Prime
(NP). The senior unsecured ratings for unrestructured debt were
affirmed at Ca and the unrestructured senior unsecured shelf
affirmed at (P)Ca.

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

ARGENTINA: Bonds Eyeing Lows on Flurry of Negative Headlines
------------------------------------------------------------
Aline Oyamada at Bloomberg News reports that after a brief respite
at the end of last week, Argentina's debt is getting hammered
again.

The nation's offshore notes approached new lows on Aug. 19, close
to wiping out the small rebound from late last week, after the
country was downgraded deeper into junk territory by two of the
three biggest ratings companies and the Economy Minister Nicolas
Dujovne resigned, according to Bloomberg News.

The extra yield investors demand to own Argentine bonds over U.S.
Treasuries widened 205 basis points to 18.58 percentage points,
according to a JPMorgan index, while 100-year securities fell 4.7
cents to 47.4 cents on the dollar, approaching last week's record
low, Bloomberg News relates.  The upfront cost to protect
Argentina's debt for five years using credit default swaps rose to
52% from 47% on Aug. 16, Bloomberg News relays.  Local markets are
closed today, Aug. 19, for a holiday, Bloomberg News notes.

"You're going to see plenty more volatility between now and the end
of October," said Graham Stock, a senior emerging-market sovereign
strategist at BlueBay Asset Management in London, Bloomberg News
relates.  Measures taken by President Mauricio Macri "won't be
enough" to help him in the Oct. 27 election, and he risks pursuing
"too populist an economic agenda" in the lead-up to the vote, Stock
said, Bloomberg News notes.

Bloomberg News relates that Macri's measures to support the economy
include freezing fuel prices for 90 days, increasing the minimum
salary and modifying taxes paid by workers.

                        Default Risk

Despite a two-day respite at the end of last week, the nation's
credit default swaps still imply a 86% chance of a default in the
next five years amid expectations the populist opposition will win
October's election, Bloomberg News relays.  The brutal slump in the
peso made the country's large pile of debt much harder to repay.
As of March 31, Argentina had $33.7 billion in foreign-currency
debt payments due by year-end, the vast majority in short-term
Treasury bills, notes the report.

In an interview on Bloomberg TV, Alejo Czerwonko, an
emerging-markets strategist at UBS Wealth Management, said a
surprise in the first round for Macri would bolster assets, but
that it was very unlikely.  Argentines vote in presidential
elections on Oct. 27 and the next government would take over on
Dec. 10, Bloomberg News says.

The sharp market sell-off was prompted by a surprise result in the
Aug. 11 primary election showing opposition candidate Alberto
Fernandez with a commanding lead over Macri, Bloomberg News
relays.

A delegation from the International Monetary Fund is expected to
arrive in Buenos Aires for meetings with the government and the
opposition ahead of a decision on whether to disburse about $5
billion of additional funds next month, Bloomberg News notes.  The
nation's reserves fell $3.9 billion last week to $62.4 billion, the
lowest since December, aggravating concerns about the country's
finances, says the report.

                        Opposition Leader

In several interviews with local newspapers, Fernandez spoke about
what he considered successful debt talks during his time as cabinet
chief that led to a restructuring of bonds and the need to
negotiate with bondholders, Bloomberg News relates.  While he
didn't say he would necessarily push for a restructuring he said
that "no one knows better than us the damage caused by default."
His economic adviser, Guillermo Nielsen, said Fernandez has no
plans to restructure the country's debt, according to the report.

"While he added some clarity on his views, he did not shed any
light on future cabinet members, which would be necessary to
understand his economic policies more concretely," Citigroup Inc.
strategists led by Dirk Willer wrote on a report, Bloomberg News
discloses.

Fitch Ratings cut Argentina's long-term issuer rating to CCC from
B, putting the South American nation on par with Zambia and the
Republic of Congo.  S&P followed, lowering the country's sovereign
rating to B- from B and slapping a negative outlook on it.

"Uncertainty continues on the private sector's predisposition to
roll over government debt and hold pesos while depreciation
stresses the government's high financing needs," S&P analyst Lisa
Schineller wrote in a statement accompanying the downgrade. Fitch's
said the deterioration in the macroeconomic environment "increases
the likelihood of a sovereign default or restructuring of some
kind."

                       About Argentina

As reported in the Troubled Company Reporter-Latin America on Aug.
20, 2019, Fitch Ratings has downgraded the sovereign ratings of
Argentina, including its Long-Term Foreign-Currency Issuer Default
Rating to 'CCC' from 'B'. The downgrade reflects elevated policy
uncertainty following the Aug. 11 primary elections, a severe
tightening of financing conditions, and an expected deterioration
in the macroeconomic environment that increase the likelihood of a
sovereign default or restructuring of some kind.

On Aug. 16, 2019, S&P Global Ratings lowered its long-term foreign
and local currency sovereign credit ratings on Argentina to 'B-'
from 'B'. The outlook is negative. S&P said, "We also affirmed our
'B' short-term foreign and local currency sovereign credit ratings.
At the same time, we placed our 'raAA-' national scale rating on
Argentina on CreditWatch with negative implications and lowered our
transfer and convertibility assessment to 'B' from 'B+'."

On July 16, 2019, Moody's Investors Service changed the outlook for
the Government of Argentina to negative from stable. Concurrently,
Moody's has affirmed the B2 foreign-currency and local-currency
long-term issuer and senior unsecured ratings. The senior unsecured
ratings for shelf registrations were also affirmed at (P)B2.  At
the same time Argentina's short-term rating was affirmed at Not
Prime (NP). The senior unsecured ratings for unrestructured debt
were affirmed at Ca and the unrestructured senior unsecured shelf
affirmed at (P)Ca.

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



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

BRAZIL: Negotiating US$500MM Loan With New Development Bank
-----------------------------------------------------------
Richard Mann at Rio Times Online reports that Environment Minister
Ricardo Salles is negotiating a US$500 million (BRL2 billion) loan
with the New Development Bank (NDB) to be transferred to the
country's municipal governments for sanitation, waste treatment,
and renewable energy.

The investment should happen early next year, according to Rio
Times Online.

"The task now is to study the best way how to implement the funds
immediately, whether it will be a transfer to municipal
associations, individual municipalities or to build waste disposal
structures made by the federal government in partnership with the
municipalities," the minister explained, the report notes.

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.

BRAZIL: Prepared to Overcome a World Economic Recession
-------------------------------------------------------
Arkady Petrov at Rio Times Online reports that President Jair
Bolsonaro said he is confident that Brazil will overcome any
problems that may arise if there is a global economic recession.

There was panic in financial markets around the world amid fears of
a new recession in the global economy, after the release of poor
economic data in China and Germany and the escalation of trade
tensions between the United States and China, according to Rio
Times Online.

As a result, the dollar exceeded the BRL4 threshold, with a 1.57
percent rise in the week, and the stock market slumped by 4.03
percent, the report relays.

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.

OI SA: Largest Shareholder Requests CEO Change
----------------------------------------------
Tatiana Bautzer at Reuters discloses that Brazilian newspaper O
Estado de S. Paulo reported the largest shareholder in Brazilian
carrier Oi SA, GoldenTree Asset Management, has requested the
company to replace its Chief Executive Officer Eurico Teles.

In a letter sent to the board by the asset manager, GoldenTree,
which holds a 14.5% stake in the company, said Oi needs a CEO "that
may execute the operational restructuring recently proposed", the
paper said, mentioning the letter was dated August 16, according to
Reuters.

Oi has filed for Latin America's largest bankruptcy protection
proceeding three years ago, and asset managers are now its largest
shareholders, after the conclusion of a debt-for-equity swap, the
report relays.

Oi and GoldenTree did not immediately respond to a Reuters request
for comment.

As reported on the Troubled Company Reporter-Latin America on May
31, 2019, Fitch Ratings has affirmed Oi S.A.'s Long-Term Foreign
and Local Currency Issuer Default Ratings at 'B-', the National
Long-Term
Rating at 'BB-(bra)', and the 2025 notes rating at 'B-'/'RR4'. The
Rating Outlook is Stable.

The ratings reflect improvements to Oi's financial profile after
the company's debt restructuring. The ratings also reflect Oi's
weak operating performance, challenged competitive position, and
uncertain turnaround prospects, says the report.

Oi filed for bankruptcy protection in June 2016 to restructure
approximately BRL65 billion of debt.



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

DOMINICAN REPUBLIC: Agro Eyes US$320BB Organic Fruit/Veggie Market
------------------------------------------------------------------
Dominican Today reports that Agriculture minister, Osmar Benitez,
disclosed a commitment to increase organic farming promotion in the
Dominican Republic, complying with that market's rules and
regulations.

Benitez's announcement opened the XI Inter-American Commission on
Organic Agriculture Assembly (CIAO), from August 19 until August
22, with some 21 Latin American countries attending, according to
Dominican Today.

He said, in four years, the world market will demand about US$320
billion in organic vegetables and fruits, the report notes.

The official said the country currently exports about 400,000 tons
of organic bananas, of which 92 percent are certified, and
catapults the nation to top exporter, the report relays.

"The world organic market is growing; the demands and indicators
that give us the guidelines towards where the future of organic
crops are growing too.  There are studies that indicate that fruits
and vegetables will be the most requested items in the next four
years," he said, the report adds.

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).



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

MAXCOM TELECOMUNICACIONES: Files for Bankruptcy in U.S.
-------------------------------------------------------
Jonathan Stempel at Reuters reports that Maxcom Telecomunicaciones
SAB, a Mexican telecommunications company, filed for U.S.
bankruptcy protection to enable it to restructure its debt.

The company and its Maxcom USA affiliate filed for protection from
creditors under Chapter 11 of the U.S. Bankruptcy Code in White
Plains, New York, with between $100 million and $500 million in
both assets and liabilities, according to Reuters.

The report notes that Maxcom said it provides voice and data
services to residential, small business and medium-sized business
customers in markets it believed were underserved by Telefonos de
Mexico SAB, a unit of billionaire Carlos Slim's America Movil SAB,
and other rivals.

It said the bankruptcy anticipates a debt exchange under which
holders of step-up senior notes that mature in 2020 will receive
new notes and cash, the report relays.

Holders of two-thirds of the step-up notes have agreed to the swap,
and general unsecured and equity claims would be unimpaired, Maxcom
said, the report adds.



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P E R U
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NAUTILUS INKIA: Fitch Affirms 'BB' IDRs, Outlook Negative
---------------------------------------------------------
Fitch Ratings has affirmed Nautilus Inkia Holdings LLC's (Inkia)
Foreign-Currency and Local-Currency Issuer Default Ratings at 'BB'.
The Rating Outlook is Negative. Fitch has also affirmed the senior
unsecured notes at 'BB'.

The Negative Outlook reflects Fitch's expectation that Inkia's
capital structure will remain pressured as a result of the
company's funding strategy used for the acquisition of a 25%
minority interest in Kallpa Generacion S.A. (BBB-/Negative).
Pressure could also come from the potential credit quality
deterioration of some of Inkia's other subsidiaries, especially
Energuate (BB/Negative). The Negative Outlook could be revised to
Stable in the medium term should the company improve its capital
structure. Inkia and its shareholder, I Squared Capital, are
currently evaluating the possibility of repaying this bridge loan
with an equity injection from Inkia's holding company Nautilus
Energy Partners (NEP), which could potentially resolve the Negative
Outlook.

Inkia's ratings reflect its consolidated credit profile
strengthened by its main cash flow contributor and subsidiary,
Kallpa partially offset by other subsidiaries weaker credit
profile, its historical debt acquisitive strategy and pressured
cash outflows from its ultimate shareholder, I Squared Capital.

KEY RATING DRIVERS

Pressured Capital Structure: Fitch expects Inkia's leverage ratios
to be pressured during the rating horizon, peaking above 5.5x in
2021 as its main subsidiary, Kallpa, pursues its own investment
cycle funded by debt with continued cash flow distribution
pressures. Further variations in cash flow could be sufficient to
result in a rating change if accompanied by even modest
underperformance relative to Fitch's base case, especially after
incorporating expected weaker results at the Energuate level.
Inkia's consolidated financial profile places it at the boundaries
of Fitch's sensitivities for a 'BB' rating. Inkia's capital
structure at the holding company level, as measured by total HoldCo
debt to dividends receipt, is adequate for a 'BB' rating at
approximately 3.4x as of YE2018. This could improve with repayment
of the USD200 million bridge loan.

Neutral to Negative FCF Expectations: Fitch expects Inkia will
report neutral to negative FCF in the medium term as a result of an
intensive capex program and significant cash outflow to its main
shareholder, I Squared Capital. Average capex is expected at USD140
million per year equally split between maintenance and expansionary
investments. Expansionary capex includes the Las Flores plant
expansion (totalling USD160 million for completion in 2022) and
Kallpa PPA's extension options (totalling USD54) million among
other construction projects in its Latin America portfolio.
Additionally, Fitch expects significant cash distribution to
shareholders despite benefiting from full ownership of Kallpa going
forward, which should add around USD40 million of cash flow per
year.

Debt Structurally Subordinated: Inkia's debt is structurally
subordinated to debt at the operating companies. Total debt at the
subsidiary level amounted to approximately USD2.1 billion, or 73%
of total consolidated adjusted debt as of December 2018. The
majority of this debt was represented by bonds taken out to replace
bank debt related to the company's projects and acquisitions.
Although Inkia's HoldCo debt remains structurally subordinated to
OpCo debt, the refinancing of nearly USD1 billion of project debt
at the subsidiary level with international bonds in 2017 has
effectively eliminated onerous cash trapping mechanisms that could
negatively affect cash flow predictability to the HoldCo. Inkia's
cash flow depends on cash distribution received from subsidiaries
and associated companies, of which it received USD232 million in
2018.

Aggressive Shareholder Strategy: The Negative Outlook reflects
Fitch's view of the company continuous approach of improving
near-term dividend flows over capitalizing on deleveraging
opportunities. Fitch's rating of Inkia previously incorporated the
expectation of a shareholder strategy that would emphasize
long-term value growth over short-term returns. Inkia previously
had a Negative Outlook from 2014-2016, largely due to the
aggressive strategy of its former shareholder, whose family-owned
organizational structure and disconnected portfolio of assets had
resulted in significant and unexpected cash outflows from Inkia at
a time when its financial profile was weak.

Geographic and Business Diversification: Inkia is focused on
diversifying its energy asset base in Latin American markets, where
overall and per capita energy consumption has a higher potential
for growth compared with developed markets, which adds risk to the
consolidated profile. Inkia adopted an aggressive expansion
strategy during the last five years to expand its portfolio. As of
2018, around 70% of its EBITDA came from investment grade rated
countries (mainly from Peru, 62%) while the balance came from High
Yield rated countries.

DERIVATION SUMMARY

In Peru, Inkia has limited peers, given its overall size and asset
diversification. Fitch rates Kallpa Generacion S.A.
(BBB-/Negative), Orazul Energy Peru S.A. (BB/Stable) and Fenix
Power Peru S.A. (BBB-/Stable).

Inkia is rated two notches below Kallpa. Although Inkia presents a
more diversified asset base, it has higher exposure to countries
with lower operating environment indicating higher business risk.
Kallpa presents a diversified asset base in Peru and an expected
lower leverage through the rating horizon peaking at 4.5x during
Las Flores construction. Inkia is expected to report leverage of
around 5.0x after completion of the investment cycle.

Inkia is rated two notches below Fenix. Although Fenix is a
single-asset generator with a high proportion of take-or-pay costs,
its ratings are buoyed by its strong shareholder support from
Colbun S.A. (BBB/Positive).

Inkia is rated at the same level as Orazul. Despite Orazul's
smaller scale, it benefits from an asset mix with both thermal and
hydroelectric generation in a strong operating environment. Both
companies are expected to report leverage closer to 5.0x through
the rating horizon.

Inkia presents a generally weaker capital structure relative to its
large, multi-asset energy peers in the region. Its nearest peer in
this group is the Chilean generator, AES Gener (BBB-/Stable), which
is also in the midst of a deleveraging period. Fitch estimates AES
Gener's gross leverage will average 4.0x in 2019-2022.

Colbun S.A. and Engie Energia Chile S.A. (BBB/Positive) also
compare favorably with Inkia, with leverage consistently at or
below 3.0x, comfortably within the investment-grade rating
category

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:

Kallpa Generacion S.A.

  -- Fully contracted for the next four years;

  -- Lower PPA's Energy Sales in 2021/2022 due to some PPA's not
being extended;

  -- Spot price rising to around USD20/MWh in 2022;

  -- Average Annual dividends of USD170 million;

  -- Four year average capex at USD75 million including Las Flores
expansion and PPA's renegotiation option execution.

Energuate Trust

  -- Demand growth in line with forecast sovereign GDP growth of
approximately 3.5% per year;

  -- Approximately 60,000 new customers per year;

  -- Inflation of around 4%, in line with historical figures;

  -- Minimal FX fluctuation, reflecting Guatemala's managed float;

  -- USD10 million in pro forma cost savings annually due to OPEX
reduction plan;

  -- No dividends in 2019 or 2020; cash above USD8 million paid in
dividends thereafter;

  -- Capex of between USD35 million and USD40 million annually
through the medium term;

  -- A significant portion of capex from 2020-2022 is approved by
the regulator and incorporated into tariffs.

Nautilus Inkia Holding

  -- Refinancing plan of Samay and bridge loan executed by 2019;

  -- Annual dividend payment of USD175 million over next four
years;

  -- Annual capex of USD140 million over next four years.

RATING SENSITIVITIES

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

  -- A positive resolution to the Negative Rating Outlook could be
considered as a result of accelerated debt reduction, which could
be possible through the repayment of the USD200 million bridge loan
without incremental debt;

  -- Although unlikely in the short to medium term, a positive
rating action could be possible as a result of a conservative cash
flow management leading to a debt to EBITDA ratio of 4.0x, or
below, on a sustained basis.

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

A negative rating action could be triggered by a combination of the
following: Consolidated gross leverage remains above 5.0x through
the rating horizon following additional investment opportunities
undertaken without an adequate amount of additional equity;
reduction in cash flow generation due to adverse regulatory issues,
deterioration of its contractual position, and/or deteriorating
operating conditions for the DisCo business; aggressive dividend
policy; and/or Inkia's asset portfolio becomes more concentrated in
countries with high political and economic risk.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: Inkia's liquidity is adequate as a result of
strong cash flow received from subsidiaries, adequate cash on
hands, comfortable amortization profile and adequate access to the
debt capital markets.

Management is currently working on a refinancing strategy to
improve Inkia's debt amortization profile.

Fitch does not expect the company to maintain cash above USD120
million, with excess funds paid out to Inkia's shareholder, I
Squared Capital. Inkia's cash flow depends on dividends received
from subsidiaries and associated companies, of which it received
USD232 million in 2018.

Inkia's senior unsecured notes due 2027 are structurally
subordinated to all existing and future Indebtedness and other
liabilities of the company's subsidiaries. Also the 2027 notes are
effectively subordinated to all existing and future secured
indebtedness of the company and any subsidiary of the company to
the extent of the value of the assets securing such indebtedness.



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

IMR SECURITY: Case Summary & 8 Unsecured Creditors
--------------------------------------------------
Debtor: IMR Security & Investigation Services, LLC
        PO Box 3381
        Arecibo, PR 00613-3381

Business Description: IMR Security & Investigation Services
                      is a privately held company in
                      Puerto Rico that offers security and
                      investigation services.

Chapter 11 Petition Date: August 16, 2019

Court: United States Bankruptcy Court
       District of Puerto Rico (Old San Juan)

Case No.: 19-04668

Judge: Hon. Enrique S. Lamoutte Inclan

Debtor's Counsel: Nilda M. Gonzalez Cordero, Esq.
                  GONZALEZ CORDERO LAW OFFICES
                  PO Box 3389
                  Guaynabo, PR 00970
                  Tel: 787-721-3437
                  E-mail: ngonzalezc@ngclawpr.com

Estimated Assets: $100,000 to $500,000

Estimated Liabilities: $1 million to $10 million

The petition was signed by Israel Martinez Rodriguez, president.

A full-text copy of the petition containing, among other items, a
list of the Debtor's eight unsecured creditors is available for
free at:

          http://bankrupt.com/misc/prb19-04668.pdf

UNIVERSITY OF THE SACRED HEART: Moody's Affirms Ba3 Rating on Bonds
-------------------------------------------------------------------
Moody's Investors Service has revised the outlook of University of
the Sacred Heart to stable from negative and affirmed the Ba3
rating on its General Revenue and Refunding Bonds, 2012A, with
$18.7 million outstanding and issued through Puerto Rico
Industrial, Tourist, Educational, Medical and Environmental
Pollution Control Facilities Financing Authority.

RATINGS RATIONALE

The revision of the outlook to stable reflects University of the
Sacred Heart's (Universidad del Sagrado Corazon or Sagrado)
demonstrated ability to generate favorable operations and cash flow
as its strong management team controls and adjust expenses to meet
revenues in a challenging student market, highlighting effective
governance.

The affirmation of Sagrado's Ba3 rating is driven by relatively
modest but adequate balance sheet reserves and liquidity.
Favorably, leverage is declining as the university repays debt.
Sagrado continues to receive funds for damage incurred and costs
paid from Hurricane Maria in 2017 with continued investment in its
campus to update facilities and remain competitive. The impact from
Hurricane Maria demonstrates the island's and Sagrado's exposure to
weather-related environmental risks. Social considerations
impacting the rating include challenging demographics from the
continued depopulation of Puerto Rico, with an aging and relatively
low income population. These factors result in declining enrollment
and limited ability to raise tuition. Favorably, governance and
management have been pro-active in investing in programs and
technology to sustain the university's fair strategic position.

RATING OUTLOOK

The stable outlook reflects Moody's expectations that University of
the Sacred Heart will be able to maintain generally stable
enrollment and core operating performance, with no decline in
liquidity or cash and investments. The outlook also reflects
continued covenant compliance.

FACTORS THAT COULD LEAD TO AN UPGRADE

  - Stable student demand with growing net tuition per student and
higher non-resident enrollment

  - Substantial growth in balance sheet resources and liquidity

FACTORS THAT COULD LEAD TO A DOWNGRADE

  - Continued enrollment declines with weaker operating results and
cash flow generation

  - Failure to achieve covenant compliance

  - Material decline in unrestricted liquidity

LEGAL SECURITY

The Series 2012A bonds are an unsecured general obligation of
university. There is an additional bonds test and rate covenant.
There is no debt service reserve fund.

The Loan Agreement for the bonds has two financial covenants, a
Debt Service Coverage covenant of more than 110% and an Expendable
Financial Resources to Debt covenant of more than 35%. Sagrado
reported full covenant compliance in fiscal 2018 of 271% and 74%,
respectively.

PROFILE

Universidad del Sagrado Corazon (University of the Sacred Heart) is
a large, private Catholic liberal arts university founded in 1935
as part of the educational mission of the religious order of the
Society of the Sacred Heart, which began in Puerto Rico in 1880. In
1970, the Sisters of the Sacred Heart transferred the governance to
a lay Board of Trustees. Sagrado is located in the Santurce section
of San Juan, a historic area. The university is largely
undergraduate and offers selected masters and post-graduate
certificates programs. Notable programs include those in the
communications major, including digital media. Headcount enrollment
for fall 2018 was nearly 4,500 students.

METHODOLOGY

The principal methodology used in this rating was Higher Education
published in May 2019.



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

VENEZUELA: Oil Output Slump Continues; Embargo Deters Foreign Trade
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venezuelanalysis.com reports that Venezuela's oil output continued
its downward trend in July, dropping 32,000 barrels per day (bpd)
to 740,000.

The figures announced by the Organization of Oil Producing
Countries (OPEC) and based on secondary sources represent a 4
percent decrease from the 774,000 bpd produced in June and a recent
low, as Caracas struggles to revitalise the troubled industry,
according to venezuelanalysis.com.  Direct communication between
OPEC and Venezuela's state-run oil company PDVSA placed July's
output slightly higher, at 906,000 bpd, the report notes.

Output has stagnated between 700 and 800,000 bpd since March, well
below previous averages of 1.4 and 1.9 million in 2018 and 2017,
respectively, the report relays.

venezuelanalysis.com says that the Venezuelan oil industry is
responsible for over 90 percent of the country's foreign currency
income and has suffered from corruption, brain drain, a lack of
maintenance and mismanagement, issues which have been significantly
exacerbated by US sanctions.

Financial sanctions against PDVSA in August 2017 resulted in an
estimated $6 billion of losses in export revenue over 12 months,
the report relays.  The measures were escalated to an embargo in
January which blocked all sales of Venezuelan crude to US
refineries while also blocking Caracas' access to vital fuel and
diluent imports, the report notes.

Washington expanded its unilateral measures to a general trade
embargo on August 5, the report recalls.  The new measure also
opened the way for secondary sanctions to be applied to non-US
firms which Washington considers are "materially assisting" the
Venezuelan government or public entities, including PDVSA, the
report notes.

venezuelanalysis.com says a series of multinational bodies have
condemned unilateral sanctions against Venezuela, including the
United Nations, the Non-Aligned Movement, the European Union, and
OPEC.

In response, PDVSA took measures to reorganise the industry this
month, converting its heavy crude upgraders into blending
facilities, the report relays.  Chinese investment allegedly worth
US$3 was also used to build a new blender plant despite the threat
of sanctions, the report notes.  Both moves look to increase the
production of the Merey blend oil preferred by Asian markets where
the majority of Venezuela's output is now destined, the report
discloses.

However, reports of foreign companies decreasing their dealings
with Venezuela have emerged in the wake of the Trump
administration's latest escalation, the report says.

According to unnamed sources quoted by Reuters, PetroChina has
cancelled three crude shippings so far in August, allegedly worth
around 5 million barrels, venezuelanalysis.com relays.  PetroChina
is part of the state-owned China National Petroleum Corporation
(CNPC) and dominates the import of Venezuelan crude to Chinese
refineries, the report notes.  Neither PetroChina nor the CNPC have
offered any comment on the allegations.

PetroChina's alleged suspended shipments followed reports that
Turkey's Ziraat Bank also closed all accounts with Venezuela's
Central Bank two weeks after the embargo, without citing further
details, the report relates.  Ziraat Bank is Turkey's largest asset
bank and is state owned, venezuelanalysis.com discloses.  Turkey is
a key ally of the Maduro government, with trade in sectors such as
food and gold increasing in recent months and Caracas increasingly
relying on Turkish intermediaries to pay contractors and bypass
financial sanctions, the report relays.

German web hosting company Sedol similarly suspended all Venezuelan
accounts the day after the unveiling of the embargo, directly
blaming Washington's policy for the move, the report notes.

"[Venezuela is] considered a high risk country by the US financial
system," a communique stated, going on to explain that the
sanctions have "a direct impact on our business relationships and
those of our subsidiary in the United States," the report notes.

Likewise, three days after the embargo was announced, US financial
services firm Western Union suspended all family remittances to
Venezuela, despite a loophole in the Treasury Department's measures
exempting remittances from the measures, the report adds.

                       About Venezuela

Venezuela, officially the Bolivarian Republic of Venezuela, is a
country on the northern coast of South America, consisting of a
continental landmass and a large number of small islands and
islets in the Caribbean sea.  The capital is the city of Caracas.

Hugo Chavez was president to Venezuela from 1999 to 2013.  The
Chavez presidency was plagued with challenges, which included a
2002 coup d'etat, a 2002 national strike and a 2004 recall
referendum.  Nicolas Maduro was elected president in 2013 after
the death of Chavez.  Maduro won a second term at the May 2018
Venezuela elections, but this result has been challenged by
countries including Argentina, Chile, Colombia, Brazil, Canada,
Germany, France and the United States who deemed it fraudulent and
moved to recognize Juan Guaido as president.

The presidencies of Chavez and Maduro have challenged Venezuela
with a socioeconomic and political crisis.  It is marked by
hyperinflation, climbing hunger, poverty, disease, crime and death
rates, social unrest, corruption and emigration from the country.

Standard and Poor's long- and short-term foreign currency
sovereign credit ratings for Venezuela stands at 'SD/D'
(November 2017).

S&P's local currency sovereign credit ratings on the other hand
are 'CCC-/C'. The May 2018 outlook on the long-term local currency
sovereign credit rating is negative, reflecting S&P's view that the
sovereign could miss a payment on its outstanding local currency
debt obligations or advance a distressed debt exchange operation,
equivalent to default.

Moody's credit rating (long term foreign and domestic issuer
ratings) for Venezuela was last set at C with stable outlook
(March 2018).

Fitch's long term issuer default rating for Venezuela was last set
at RD (2017) and country ceiling was CC. Fitch, on June 27, 2019,
affirmed then withdrew the ratings due to the imposition of U.S.
sanctions on Venezuela.


                           *********


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

Troubled Company Reporter-Latin America is a daily newsletter
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Chapman, Editors.

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

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