TCRLA_Public/190905.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Thursday, September 5, 2019, Vol. 20, No. 178

                           Headlines



A N T I G U A   A N D   B A R B U D A

LIAT: Needs New Shareholders, Gonsalves Says


A R G E N T I N A

ARGENTINA: Fitch Upgrades LT Issuer Default Ratings to 'CC'
ARGENTINA: Vulture Funds Circle, Waiting for Right Time to Buy
BUENOS AIRES: Fitch Downgrades LT Issuer Default Rating to B-
BUENOS AIRES: Moody's Downgrades Issuer Rating to Caa2
CAMUZZI GAS: Moody's Downgrades Corp. Family Rating to Caa1

CORDOBA: Moody's Cuts FC Debt Rating to Caa2
EMPRESA DISTRIBUIDORA: Moody's Lowers Corp. Family Rating to Caa1
PAMPA ENERGIA: Moody's Downgrades Sr. Unsec. Notes Rating to Caa1
TELECOM ARGENTINA: Moody's Downgrades Corp. Family Rating to Caa1


B R A Z I L

BANCO DO ESTADO: Moody's Affirms Ba2 LC Deposit Rating, Outlook Neg
COMPANHIA ENERGETICA: Moody's Affirms B1 CFR, Outlook Now Pos.
OURO VERDE: Fitch Affirms 'B' LT IDR, Outlook Positive
VALE SA: Moody's Affirms Ba1 CFR, Alters Outlook to Stable
VALE SA: Moody's Affirms Ba1 Sr. Unsec Notes Rating, Outlook Stable



D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Jan - July Revenue Jumps 10.1% to US$7.7BB
DOMINICAN REPUBLIC: Power Companies Meet National Demand


H A I T I

HAITI: Crisis Deepens, Gas Shortage Result in Violent Protests


M E X I C O

METROFINANCIERA SAPI: Moody's Lowers Series A Certs Rating to Caa2


V E N E Z U E L A

CITGO PETROLEUM: S&P Affirms 'B-' Long-Term ICR

                           - - - - -


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

LIAT: Needs New Shareholders, Gonsalves Says
--------------------------------------------
Marlon Madden at Barbados Today reports that one shareholder
government in the cash-strapped regional airline, LIAT, has no
confidence that the regional private sector will be willing to pump
any money into its operations.

And while Prime Minister of St Vincent and the Grenadines Dr. Ralph
Gonsalves does not see the selling of the airline's shares making
any difference to its operations, he believes it is time the
regional carrier gets new shareholders, according to Barbados
Today.

His comments come amidst ongoing discussions between officials of
majority shareholder Barbados and those of Antigua and Barbuda, as
to how much the latter was willing to pay to acquire most of
Barbados' shares in the airline, the report notes.

Stopping short of entirely dismissing the notion of a sale of
shares from one government to the next, Gonsalves described the
discussions between Bridgetown and St John's as a "work in
progress", but told Barbados Today in a brief interview that what
the airline needed now were significant injections of capital from
new sources, the report relays.

"Even if Barbados sells significant portion of its shares and
Antigua gets the majority, Barbados will remain a significant
player because it will still be on the board.  The truth is this,
what LIAT needs is a heavy dose of new equity capital. That is the
issue as I see it, rather than the buying of shares from one
country by another--to have more money inside of LIAT to help it to
do the necessary and desirable restructuring to serve the public
better and improve LIAT's bottomline," the report quoted Mr.
Gonsalves as saying.

Bridgetown currently has a 49 per cent stake in the island-hopping
airline, while St John's has a 34 per cent stake, the report
relays.

About three months ago it was made public that the Antigua
government had put forward a proposal to purchase almost all of
Barbados' shares, and about a month later Prime Minister Mia
Mottley confirmed this, while announcing that she had agreed to
sell, the report notes.

Officials are still tight-lipped on the details of the proposal and
how it would impact on Barbados' relationship with the carrier, but
reports are that Antigua, where the airline is based, could acquire
up to 47 per cent of Barbados' shares, making it the largest
shareholder government of the airline, which has been undergoing
some restructuring, the report notes.

The other shareholders are Dominica, St Vincent and the Grenadines
and Grenada, the report relays.

Gonsalves told Barbados Today that although the airline was
desperately in need of funding, which should also come from
destinations that benefit from its service, he questioned their
willingness to fund an operation that is inefficient.

LIAT currently employs some 600 people and operates just over 490
flights per week to 15 destinations, the report notes.

Gonsalves insisted that necessary funding of the struggling airline
needs to come from a number of different sources, from all the
existing shareholders, but more importantly, from "new
shareholders," the report notes.

"I don't see the private sector putting in money, although I am
told that some of them want to, but I have been hearing that for
quite a while. So other governments served by LIAT should put up
some money," insisted Gonsalves, the report relays.

"You provide support for that route, but the critical issue there
is what is the extent of that support which you are asking; is the
support to subsidize any inefficiency of LIAT or support to finance
an optimal level of efficiency?" he said, the report discloses.

Earlier this year, officials urged Caribbean countries to put up
US$5.4 million under a minimum revenue guarantee scheme to keep the
airline afloat, the report relays.

While existing shareholding governments have so far agreed to the
proposed contribution, it is not immediately clear if Barbados will
go through with its US$1.614 million that was being asked
considering the pending sale of its majority shares, the report
notes.

It is also not yet known if Guyana, St Kitts and Nevis and St Lucia
have agreed to the minimum revenue guarantee proposal for them to
contribute US$292,282, US$389,691 and US$584,536, respectively, the
report discloses.

Under the scheme St Vincent and the Grenadines would put up
US$723,711, Grenada US$487,113 and Dominica US$347,938, figures
calculated based on the number of weekly flights to the
destinations, the report adds.

                           About LIAT

LIAT Ltd., formerly known as Leeward Islands Air Transport or
LIAT,
is an airline headquartered on the grounds of V. C. Bird
International Airport in Antigua.  It operates high-frequency
inter-island scheduled services serving 15 destinations in the
Caribbean.  The airline's main base is VC Bird International
Airport, Antigua and Barbuda, with bases at Grantley Adams
International Airport, Barbados and Piarco International Airport,
Trinidad and Tobago.

The airline is owned by seven Caribbean governments, with three
being the major shareholders: Barbados, Antigua & Barbuda and St.
Vincent and the Grenadines along with Dominica(94.7 %); other
Caribbean governments, private shareholders and employees (5.3%).

In the last few years, LIAT has been challenged with financial
difficulties, often needing additional funding as the airline
dealt
with the high cost of operations.  In November 2016, the Barbados
government defended LIAT's operations, even as opposition
legislators called for a cessation of the business.  In early
2015,
LIAT offered early retirement packages to employees in efforts to
downsize.  In 2014, LIAT knew it had to deal with unprofitable
routes to make operations viable.  In the third quarter of 2013,
the airline's top management was shaken, with news Chief Executive
Officer Captain Ian Brunton's sudden resignation.

LIAT's current chief executive officer is Julie Reifer-Jones,
chairman is Jean Holder, and chief financial officer is Rojer
Inglis.

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



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

ARGENTINA: Fitch Upgrades LT Issuer Default Ratings to 'CC'
-----------------------------------------------------------
Fitch Ratings has upgraded Argentina's Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDRs) to 'CC' from 'RD', and
its Short-Term Foreign- and Local-Currency IDRs to 'C' from 'RD'.
The issue ratings on Argentina's senior unsecured foreign-currency
bonds remain at 'CC'. Fitch has downgraded the Country Ceiling to
'CCC' from 'B-'.

KEY RATING DRIVERS

Fitch has upgraded Argentina's Long-Term IDRs to 'CC' from 'RD'
(Restricted Default) following the payment of short-term debt
instruments on Aug. 30 under revised terms imposed via presidential
decree, which effectively constitutes the conclusion of an exercise
that Fitch categorized as a 'distressed debt exchange' (DDE). This
marks the first payment on these peso- and USD-denominated
short-term instruments (Letes, Lecaps, Lecer and Lelink) under a
new schedule that extends upcoming repayments by six months through
October 2020.

Argentina's 'CC' Long-Term IDRs reflect Fitch's expectation that a
further default or debt restructuring of some kind is probable. The
government has announced plans to pursue a re-profiling of select
long-term bonds issued under both local and foreign law. It has
indicated that it has already started to engage holders of
foreign-law bonds in a renegotiation process, and it will consult
congress to pursue a similar course with holders of local-law
bonds. Commencement of a default or default-like process would
initially result in a downgrade to 'C'. Fitch expects such a
re-profiling, should it occur, is likely to entail a material
reduction in terms and be conducted to avoid a traditional payment
default and thus would constitute a DDE. Risks of a traditional
payment default also remain, however, given the government's
constrained liquidity position and political and economic
uncertainties that could complicate a timely debt renegotiation
process.

The downgrade of the Country Ceiling to 'CCC' reflects the recent
imposition of capital controls as of September 2 and risks that
these could be tightened further given the sovereign's limited
foreign financing options, especially as the authorities attempt to
prevent a continued decline in international reserves. Fitch
believes the current controls and risks of further tightening could
potentially impair the private sector's ability to access foreign
exchange to meet debt service, in spite of exceptions that have
been included in the controls for debt repayment.

This rating action follows several weeks of extreme financial
instability triggered by the adverse market reaction to the results
of primary elections on August 11. This posed a major setback to
macroeconomic stabilization efforts and sovereign financing
conditions, which led Fitch to downgrade Argentina's ratings to
'CCC' on Aug. 16. Following the government's announcement on Aug.
28 that it would delay repayment on its short-term debt instruments
to alleviate liquidity constraints and protect central bank
international reserves, Fitch downgraded the ratings to 'RD' on
Aug. 30 as the new repayment schedule took effect.

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

In accordance with its rating criteria, for ratings of 'CCC' and
below, Fitch's sovereign rating committee has not utilized the SRM
and QO to explain the ratings, which are instead guided by the
relevant ratings definitions for the CCC-D categories.

Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three-year centered
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 its
criteria that are not fully quantifiable and/or not fully reflected
in the SRM.

RATING SENSITIVITIES

The main factors that could, individually, or collectively, lead to
a positive rating action include:

  - Developments that alleviate financing constraints and enable
the government to meet its debt service obligations on a sustained
basis.

The main factors that could, individually, or collectively, lead to
a negative rating action include:

  - Signs of imminent default on commercial debt obligations; for
example, a formal launch of a debt exchange proposal involving a
material reduction in terms and taken to avoid a traditional
payment default.


KEY ASSUMPTIONS

Fitch expects growth of the global economy, and that of key trading
partner Brazil, in line with the projections outlined in its latest
Global Economic Outlook publication.

ARGENTINA: Vulture Funds Circle, Waiting for Right Time to Buy
--------------------------------------------------------------
Aline Oyamada and Sydney Maki at Bloomberg News report that the
sell-off in Argentina bonds is so severe that it may soon attract
distressed-debt investors betting that there's money to be made in
a restructuring.

With overseas notes trading at about 38 cents on the dollar, the
vulture funds are probably still a ways from swooping in, according
to Bloomberg News.  Shops including Morgan Stanley and Merian
Global Investors expect buyers with a strong appetite for risk will
emerge at about 30 cents, Bloomberg News relates.

"The market will go lower and distressed investors will step in at
some point, even with the uncertainty," said Alain Nydegger, a
money manager at Pala Assets in Switzerland, which focuses on
emerging-market debt, Bloomberg News notes.

Less than five years after settling with holdout creditors from a
record default in 2001, Argentina is again looking like a ripe
target for funds that specialize in wringing value out of
distressed assets, Bloomberg News discloses.  Following a market
rout in the wake of a primary election that showed the populist
opposition likely to win the presidency this year, the government
said it will impose capital controls as an emergency measure to
shore up the peso, Bloomberg News relates.

Money managers and analysts had been saying that bondholders were
likely to recoup 30 cents-to-40 cents on the dollar on Argentina's
international notes if the country goes through with a
restructuring, Bloomberg News notes.  So far, the government has
said it wants to delay payments on up to $101 billion of debt,
Bloomberg News relays.

Nydegger said that at 30 cents on the dollar the bonds start to
look appealing, but some distressed funds would likely start adding
at 35 cents, Bloomberg News says.  He said he would start buying at
between 25 and 30 cents, figuring he'd make a profit with a 50%
haircut if negotiations take three years,  notes the report.

Argentina's century bonds, among the most traded, edged lower Sept.
3 to 37.7 cents on the dollar, according to Bloomberg News.  Dollar
notes due in 2048 changed hands at similar levels, while
euro-denominated bonds due in 2028 and 2038 were slightly lower
near 35 cents.

Distressed debt investors will probably wait until Argentine bonds
are well below expected recovery values before buying, said Eric
Baurmeister, who helps manage $12 billion in emerging-market debt
at Morgan Stanley Investment Management Inc. in New York, Bloomberg
News relates.  Prices could drop to 20 cents on the dollar or
lower, he said in an interview.

"What I fear--and what I think is likely--is that we're in the
beginning of this," Baurmeister said, notes the report.  "It's a
little bit like the proverbial Pandora's Box, and once you say that
we're going to restructure, then everything's on the table," he
added.

Bloomberg News notes that holders of Argentine bonds issued in the
past few years are bound by collective-action clauses that will
limit their ability to seek a settlement apart from the majority of
investors.  That means there won't be an exact repeat of what
happened after the 2001 default, when a fund controlled by Paul
Singer's Elliott Management took Argentina to court for full
repayment instead of accepting the terms to which most creditors
agreed, Bloomberg News relates.

Argentine assets and foreign reserves have been plunging since the
Aug. 11 primary election, the report says.  Investors concerned
that a government led by opposition candidate Alberto Fernandez
would prioritize social spending over shoring up the budget has
sent the peso down 19% since the vote, while reserves dropped $13
billion, or almost 20%, to $53.1 billion, notes Bloomberg News.

Under the rules disclosed, companies in Argentina now need the
central bank's authorization to buy dollars in the foreign-exchange
market, except in cases of international trade, Bloomberg News
relates. Individual Argentines, meanwhile, are limited to dollar
purchases of no more than $10,000 a month, Bloomberg News says.

Bonds may fall to the low 30-cents level before catching a bid,
Morgan Stanley strategists led by James Lord wrote in a report.

Delphine Arrighi, a London-based portfolio manager at Merian Global
Investors, also cited the 30-cent level as potentially appealing to
some investors, Bloomberg News says.  That, however, depends on the
policy signals given by the incoming administration, she said.

Argentina's valuations are "certainly starting to look more
attractive," even as investors search for clarity, said Graham
Stock, a senior emerging-market sovereign strategist at BlueBay
Asset Management in London, reports Bloomberg News.  "At these kind
of levels, I think not just distressed, but dedicated investors are
going to start to look at adding positions again."

                          About Argentina

As reported in the Troubled Company Reporter-Latin America on Sept.
4, 2019, S&P Global Ratings raised on Aug. 30, 2019, its foreign
and local currency sovereign credit ratings on Argentina to
'CCC-/C' from 'SD'. The outlook on the long-term ratings is
negative. In addition, S&P raised its short-term issue ratings to
'C' from 'D'. S&P also raised the national scale rating to 'raCCC-'
from 'SD'. S&P said, "The negative outlook reflects the prominent
downside risks to payment of debt on time and in full per our
criteria over the coming months amid very complex political,
economic, and financial market dynamics.

S&P previously lowered its sovereign credit ratings on Argentina to
'SD' from a long-term rating of 'B-' and a short-term rating of 'B'
on Aug. 29, 2019.

On Sept. 3, 2019, the TCRLA reported that Moody's Investors Service
downgraded the Government of Argentina's foreign-currency and
local-currency long-term issuer and senior unsecured ratings to
Caa2 from B2. The senior unsecured ratings for shelf registrations
were also downgraded to (P)Caa2 from (P)B2. The outlook on these
ratings has been changed to ratings under review from negative.

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.

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.

BUENOS AIRES: Fitch Downgrades LT Issuer Default Rating to B-
-------------------------------------------------------------
Fitch Ratings has downgraded 10 Argentine Local and Regional
Governments (LRGs) following the downgrade of Argentina's sovereign
rating to 'RD' from 'CCC' on Aug. 30, 2019.

Buenos Aires, City of

LT IDR;        B- Downgrade;    previously at B

ST IDR;        B Affirmed;      previously at B

LC LT IDR;     B- Downgrade;    previously at B

LC ST IDR;     B Affirmed;      previously at B

Sr. Unsec. LT; B- Downgrade;    previously at B


Cordoba, Province of

LT IDR;        B- Downgrade;    previously at B

LC LT IDR;     B- Downgrade;    previously at B

Sr. Unsec. LT; B- Downgrade;    previously at B


Santa Fe, Province of

LT IDR;        B- Downgrade;    previously at B

LC LT IDR;     B- Downgrade;    previously at B

Sr. Unsec. LT; B- Downgrade;    previously at B


Salta, Province of

LT IDR;        CCC Downgrade;   previously at B

LC LT IDR;     CCC Downgrade;   previously at B

Sr. Sec. LT;   CCC Downgrade;   previously at B

Sr. Unsec. LT; CCC Downgrade;   previously at B


Chubut, Province of

LT IDR;        CCC Downgrade;   previously at B

LC LT IDR;     CCC Downgrade;   previously at B

Sr. Sec. LT;   CCC Downgrade;   previously at B


Neuquen, Province of

LT IDR;        CCC Downgrade;   previously at B

LC LT IDR;     CCC Downgrade;   previously at B

Sr. Sec. LT;   CCC Downgrade;   previously at B

Sr. Unsec. LT; CCC Downgrade;   previously at B


Cordoba, Municipality of

LT IDR;        CCC Downgrade;   previously at B

LC LT IDR;     CCC Downgrade;   previously at B

Sr. Unsec. LT; CCC Downgrade;   previously at B


Chaco, Province of

LT IDR;        CCC Downgrade;   previously at B

LC LT IDR;     CCC Downgrade;   previously at B

Sr. Unsec. LT; CCC Downgrade;   previously at B


Entre Rios, Province of

LT IDR;        CCC Downgrade;   previously at B

LC LT IDR;     CCC Downgrade;   previously at B

Sr. Unsec. LT; CCC Downgrade;   previously at B


La Rioja, Province of

LT IDR;        CCC Downgrade;   previously at B

LC LT IDR;     CCC Downgrade;   previously at B

Sr. Unsec. LT; CCC Downgrade;   previously at B


KEY RATING DRIVERS

The downgrade of Argentina's ratings to 'RD' follows the
government's unilateral extension of repayment on certain debt
obligations effective August 30, specifically on short-term T-bill
instruments issued under local law and denominated in USD and
pesos. In accordance with its criteria, Fitch believes Argentina is
in default on its sovereign obligations and that this development
constitutes a 'distressed debt exchange' (DDE).

Fitch has downgraded the City of Buenos Aires, Province of Santa
Fe, and Province of Cordoba Long-Term Local and Foreign Currency
IDRs to 'B-'/Negative from 'B'/Negative, which is currently above
Argentina's IDR of 'RD' but capped by the country ceiling of 'B-'.
LRG ratings are typically capped by the sovereign rating, but the
rating actions on these three issuers are according to Fitch's LRG
criteria. The criteria states that when a sovereign is rated below
'B-' the LRG could still be rated 'B-' if it has the capacity to
withstand a sovereign default due to a strong budget, has no need
to undertake external refinancing of debt in the short term, and
has sufficient liquidity for it not to face an imminent default.
The Standalone Credit Profiles (SCPs) of these issuers are above
the sovereign rating, with City of Buenos Aires' SCP at 'bb-',
Province of Santa Fe at 'bb-', and Province of Cordoba at 'b+'.

Fitch downgraded Province of Salta, Province of Neuquen,
Municipality of Cordoba, Province of Chaco, Province of Chubut,
Province of Entre Rios, and Province of La Rioja Long-Term Local
and Foreign Currency IDRs to 'CCC' from 'B'/Negative as they do not
meet the above conditions stipulated in Fitch's LRG criteria to be
rated 'B-' when the sovereign is rated lower than that. The SCPs of
these issuers are 'ccc'. Fitch relied on its rating definitions to
position these ratings.

Considering the current structural weaknesses of macroeconomic
recession, structurally high inflation, sharp currency
depreciation, and market uncertainty Fitch classifies the Risk
Profile of Argentine LRGs as 'Vulnerable'.

KEY ASSUMPTIONS

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

  -- A sharp currency depreciation of the peso during 2019-2021.

  -- Interest expenditure and debt amortization projected payments
consider Fitch's FX projections.

  -- A real term decrease in taxes and federal transfers.

  -- Real-term salary adjustments.

RATING SENSITIVITIES

A downgrade of Argentina's country ceiling rating would negatively
impact the LRG's ratings.

BUENOS AIRES: Moody's Downgrades Issuer Rating to Caa2
------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo downgraded
the issuer and debt ratings on both Global/National scales and in
Foreign and Local currencies of Argentine provinces and
municipalities, and placed the ratings under review for downgrade.
Moody's downgraded baseline credit assessments on all affected
issuers that are in each case the same as their issuer rating.

This portfolio-wide rating action on the Argentine sub-sovereigns
follows Moody's recently announced downgrade of Argentina's
local-currency and foreign-currency sovereign bond ratings to Caa2
from B2 on August 30, 2019.

RATINGS RATIONALE

The action follows a similar rating action on Argentina's sovereign
bonds ratings --both in local and foreign currency- and reflects
the very close economic and financial linkages that exist between
Argentina's government and Argentine sub-sovereigns.

Moody's considers that Argentine sub-sovereigns' credit quality
will be negatively affected by the rise of significant systemic
risks stemming from the sovereign. For the remainder of 2019,
Moody's expects sub-sovereigns to see their credit quality
deteriorate as a result of constrained market access, exchange rate
pressures, increased financing costs and persistently high
inflation. As a result, the liquidity position and fiscal
flexibility of Argentine sub-sovereigns will deteriorate markedly
while their debt service burden will increase.

Moody's expects the review period to extend beyond the usual
three-month horizon. The review will focus on the evolution of
policy making at the sovereign level in the current context of
market volatility. In addition, the review will focus on the
specific liquidity pressures and fiscal strength of sub-sovereigns
amidst the expected economic contraction and inflationary
pressures.

Moody's published an update to its National Scale Rating (NSR) map
for Argentina to reflect the downgrade of the government's
long-term issuer rating. Moody's NSRs are ordinal rankings of
creditworthiness relative to other credits within a given country,
which offer enhanced credit differentiation among local credits.
NSRs are generated from Global Scale Ratings (GSRs) through
correspondences, or maps, specific to each country. However, unlike
GSRs, Moody's NSRs are not intended to rank credits across multiple
countries. Instead, they provide a measure of relative
creditworthiness within a single country. The full maps can be
accessed through the "Index of Current and Superseded Compendia of
National Scale Rating Maps by Country". As a result of the rating
action on Argentina and the expected impact on other ratings, the
NSR mapping was revised, from the previous map based on a Ba3
anchor point, to the one based on a B1 anchor point. Based on its
rating methodology Mapping National Scale Ratings from Global Scale
Ratings published in May 2016, the anchor point can never be lower
than B1 even when the sovereign rating is lower as Argentina's is
now. The map based on B1 provides ample ability to differentiate
and rank order credits, even if some of the higher NSR ratings are
no longer accessible.

ISSUERS AND RATINGS AFFECTED

The ratings of the following issuers were downgraded, and placed
under review for downgrade:

  - Province of Buenos Aires: Issuer and debt ratings downgraded to
Caa2/B3.ar from B2/A3.ar (on Global/Argentina's national scales,
respectively). Ratings placed under review for downgrade.

  - Province of Cordoba: Issuer and debt ratings downgraded to
Caa2/B1.ar from B2/A1.ar (on Global/Argentina's national scales,
respectively). Ratings placed under review for downgrade.

  - Province of Chaco: Issuer and debt ratings downgraded to
Caa2/B3.ar from B2/A3.ar (on Global/Argentina's national scales,
respectively). Ratings placed under review for downgrade.

  - Province of Chubut: Issuer and senior unsecured debt ratings
downgraded to Caa3/ Caa1.ar from B3/Baa3.ar (on Global/Argentina's
national scales, respectively). Senior secured debt ratings
downgraded to Caa2/B2.ar from B2/A2.ar (on Global/Argentina's
national scales, respectively). Ratings placed under review for
downgrade.

  - Province of Rio Negro: Issuer and debt ratings downgraded to
Caa2/B3.ar from B2/A3.ar (on Global/Argentina's national scales,
respectively). Ratings placed under review for downgrade.

  - Municipality of Cordoba: Issuer and debt ratings downgraded to
Caa2/B2.ar from B2/A2.ar (on Global/Argentina's national scales,
respectively). Ratings placed under review for downgrade.

  - City of Buenos Aires: debt ratings downgraded to Caa2/B1.ar
from B2/A1.ar (on Global/Argentina's national scales,
respectively). Ratings placed under review for downgrade.

  - Province of Formosa: Issuer and debt ratings downgraded to
Caa2/B3.ar from B3/Baa3.ar (on Global/Argentina's national scales,
respectively). Ratings placed under review for downgrade.

  - Province of Misiones: Issuer and debt ratings downgraded to
Caa2/B3.ar from B2/A3.ar (on Global/Argentina's national scales,
respectively). Ratings placed under review for downgrade.

  - Province of Tucuman: Issuer ratings downgraded to Caa2/B3.ar
from B2/A3.ar (on Global/Argentina's national scales,
respectively). Ratings placed under review for downgrade.

WHAT COULD CHANGE THE RATING UP/DOWN

Given the strong macroeconomic and financial linkages between the
Government of Argentina's and Sub-sovereigns, a downgrade in
Argentina's bond ratings and/or further systemic deterioration
could exert downward pressure on the ratings. Alternatively,
increased idiosyncratic risks could translate into a downgrade.

Moody's does not expect upward pressures in the rated Argentinean
sub-sovereigns in the near to medium term.

The principal methodology used in these ratings was Procedures
Manual for Risk Rating of Sub-Sovereign Governments published in
January 2017.

CAMUZZI GAS: Moody's Downgrades Corp. Family Rating to Caa1
-----------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo downgraded
the ratings on 10 utilities and infrastructure companies operating
in Argentina and placed their ratings under review for downgrade.
The rating action follows the downgrade of the Government of
Argentina's senior unsecured ratings to Caa2 from B2, and placement
of the ratings under review for downgrade and reflects the strong
credit linkages and exposure these companies have to Argentina's
regulations and operating environment.

Issuers and ratings included in this action are as follows:

1) Camuzzi Gas Pampeana S.A.

Corporate Family Rating downgraded to Caa1/Baa3.ar from B1/Aa3.ar

Ratings placed under review for downgrade.

Outlook, Changed To Rating Under Review From Negative

2) Distribuidora De Gas Cuyana S.A.

Corporate Family Rating downgraded to Caa1/Baa3.ar from B1/Aa3.ar

Ratings placed under review for downgrade.

Outlook, Changed To Rating Under Review From Negative

3) NATURGY BAN S.A.

Corporate Family Rating downgraded to Caa1/Baa3.ar from B1/Aa3.ar

Ratings placed under review for downgrade.

Outlook, Changed To Rating Under Review From Negative

4) MetroGas S.A.

Corporate Family Rating downgraded to Caa1/Ba1.ar from B1/Aa3.ar

$600m Senior Unsecured EURO MTN PROGRAM ratings downgraded
Caa1/Ba1.ar from B1/Aa3.ar

Senior Unsecured MEDIUM TERM NOTES ratings downgraded to
Caa1/Ba1.ar from B1/Aa3.ar

Ratings placed under review for downgrade.

Outlook, Changed To Rating Under Review From Negative

5) Empresa Distribuidora de Electricidad Salta

$65m Senior Unsecured EURO MEDIUM TERM NOTES due 2021 ratings
downgraded to Ba2.ar from Aa3.ar

Ratings placed under review for downgrade.

Outlook, Changed To Rating Under Review From Negative

6) Empresa Distribuidora Norte S.A.

Corporate Family Rating downgraded to Baa3.ar from Aa3.ar

$176m Senior Unsecured GLOBAL NOTES due 2022 ratings downgraded to
Baa3.ar from Aa3.ar

Ratings placed under review for downgrade.

Outlook, Changed To Rating Under Review From Negative

7) Empresa Provincial de Energiaa de Cordoba

Corporate Family Rating downgraded to Caa2/B1.ar from B2/A1.ar

$565m Senior Secured ARGENTINE BONDS and $100m Senior Secured NOTES
ratings downgraded to Caa2/B1.ar from B2/A1.ar

Ratings placed under review for downgrade.

Outlook, Changed To Rating Under Review From Negative

8) Albanesi S.A. / Generacion Mediterranea S.A

$336m Backed Senior Unsecured GTD GLOBAL NOTES due 2023 ratings
downgraded to B2.ar from A3.ar

Ratings placed under review for downgrade.

9) Transportadora de Gas del Sur S.A.

Corporate Family Rating downgraded to Baa3.ar from Aa2.ar

Ratings placed under review for downgrade.

10) YPF Energia Electrica S.A.

Corporate Family Rating downgraded to Caa2/B1.ar from B2/A1.ar

$100m Senior Unsecured NOTES ratings downgraded to Caa2/B1.ar from
B2/A1.ar

Ratings placed under review for downgrade.

RATINGS RATIONALE

The rating downgrade coupled with the placement under review for
downgrade for the issuers listed above mainly reflects the
downgrade and placement under review for downgrade of the
sovereign, as all these companies remain subject to government
regulations and local operating environment. Moody's considers that
Argentine Utilities and Infrastructure companies' credit quality is
negatively affected by Argentina's deteriorated operating
environment.

Furthermore, the regulated concessions ratings also incorporate
uncertainties surrounding continuity of policies and the
consistency of the regulatory frameworks and the sufficiency of
rates going forward. Increased consumers' criticism, political
opposition and the upcoming elections pressured the federal
government to postpone a tariff adjustment expected for the second
half of this year. Nevertheless, the downgrade of Argentina's
regulated companies to Caa1, one notch above the sovereign rating,
reflects their relatively strong credit metrics, low leverage and
adequate liquidity combined with comfortable debt maturities'
profiles.

The downgrade of power companies reflects their exposure and
reliance on the government controlled Cammesa (Compania
Administradora del Mercado Electrico Argentino, the Argentine
government's agency overseeing the wholesale electricity market) as
their key off-taker. It also incorporates liquidity pressures and
the challenges the companies in this sector face to fund their
expansion plans in a more difficult economic environment, and
possible lack of market access. Power companies also exhibit weaker
credit profiles due to high leverage and tighter liquidity because
of the financing needs arising from their investment programs.
Empresa Provincial de Energia de Cordoba's (EPEC) ratings also
reflect the application of Moody's Joint Default Analysis framework
for Government-Related Issuers (GRI), which considers the rating of
the Province of Cordoba (Caa2/B1.ar RUR Down).

In addition, following this rating action, Moody's will withdraw
Transportadora de Gas del Sur S.A. ratings in accordance with local
regulatory requirements following the termination of the rating
agreement at the request of the issuer.

Moody's expects the review period to extend beyond the usual
three-month horizon. The review will focus on the evolution of
policy making at the sovereign level in the current context of
market volatility. In addition, the review will focus on the
specific liquidity pressures amidst the current macroeconomic
conditions and inflationary pressures.

WHAT COULD CHANGE THE RATING UP/DOWN

A further downgrade of the sovereign or evidence of a significant
negative shift in policies or regulations will likely result in
negative rating actions for Argentine infrastructure companies.
Liquidity deterioration in a more challenging operating environment
could also create negative pressure on ratings for those companies
in the power sector that show higher leverage and face significant
investment needs in the next 12 to 18 months.

Moody's does not expect upward pressures in the rated Argentinean
infrastructure companies in the near to medium term.

The principal methodology used in these ratings was Procedures
Manual to Rate Companies and/or Securities Issued published in
January 2017.

CORDOBA: Moody's Cuts FC Debt Rating to Caa2
--------------------------------------------
Moody's Investors Service downgraded the issuer and debt ratings on
Global Scale - foreign currency - of eight Argentine provinces and
of two municipalities and placed their ratings under review for
downgrade. Moody's downgraded baseline credit assessments on all
affected issuers that are in each case the same as their issuer
rating.

This portfolio-wide rating action on the Argentine sub-sovereigns
follows Moody's recently announced downgrade of Argentina's
local-currency and foreign-currency sovereign bond ratings to Caa2
from B2 on August 30, 2019.

RATINGS RATIONALE

The action follows a similar rating action on Argentina's sovereign
bond ratings--both in local and foreign currency--and reflects the
very close economic and financial linkages that exist between
Argentina's government and Argentine sub-sovereigns.

Moody's considers that Argentine sub-sovereigns' credit quality
will be negatively affected by the rise of significant systemic
risks stemming from the sovereign. For the remainder of 2019,
Moody's expects sub-sovereigns to see their credit quality
deteriorate as a result of constrained market access, exchange rate
pressures, increased financing costs and persistently high
inflation. As a result, the liquidity position and fiscal
flexibility of Argentine sub-sovereigns will deteriorate markedly
while their debt service burden will increase.

Moody's expects the review period to extend beyond the usual
three-month horizon. The review will focus on the evolution of
policy making at the sovereign level in the current context of
market volatility. In addition, the review will focus on the
specific liquidity pressures and fiscal strength of sub-sovereigns
amidst the expected economic contraction and inflationary
pressures.

ISSUERS AND RATINGS AFFECTED

The ratings of the following issuers were downgraded, and placed
under review for downgrade:

- Province of Buenos Aires: foreign currency debt ratings
downgraded to Caa2 from B2 (on Global Scale). Ratings placed under
review for downgrade.

- Province of Cordoba: foreign and local currency issuer and
foreign currency debt ratings downgraded to Caa2 from B2 (on Global
Scale). Ratings placed under review for downgrade.

- Province of Mendoza: foreign and local currency issuer and
foreign currency debt ratings downgraded to Caa2 from B2 (on Global
Scale). Ratings placed under review for downgrade.

  - Province of Santa Fe: foreign currency issuer and debt ratings
downgraded to Caa2 from B2 (on Global Scale). Ratings placed under
review for downgrade.

  - Province of Chaco: foreign currency issuer and debt ratings
downgraded to Caa2 from B2 (on Global Scale). Ratings placed under
review for downgrade.

  - Province of Chubut: foreign currency issuer rating downgraded
to Caa3 from B3 (on Global Scale) and foreign currency debt ratings
downgraded to Caa2 from B2 (on Global Scale). Ratings placed under
review for downgrade.

  - Province of Rio Negro: foreign currency issuer and debt ratings
downgraded to Caa2 from B2 (on Global Scale). Ratings placed under
review for downgrade.

  - Province of Tierra del Fuego: foreign currency issuer rating
downgraded to Caa3 from B3 (on Global Scale) and foreign currency
debt ratings downgraded to Caa2 from B2 (on Global Scale). Ratings
placed under review for downgrade.

  - Municipality of Cordoba: foreign currency issuer and debt
ratings downgraded to Caa2 from B2 (on Global Scale). Ratings
placed under review for downgrade.

  - City of Buenos Aires: foreign and local currency senior
unsecured debt ratings downgraded to Caa2 from B2 (on Global
Scale). Ratings placed under review for downgrade.

WHAT COULD CHANGE THE RATING UP/DOWN

Given the strong macroeconomic and financial linkages between the
Government of Argentina's and Sub-sovereigns, a downgrade in
Argentina's bond ratings and/or further systemic deterioration
could exert downward pressure on the ratings. Alternatively,
increased idiosyncratic risks could translate into a downgrade.

Moody's does not expect upward pressures in the rated Argentinean
sub-sovereigns in the near to medium term.

The principal methodology used in these ratings was Regional and
Local Governments published in January 2018.

EMPRESA DISTRIBUIDORA: Moody's Lowers Corp. Family Rating to Caa1
-----------------------------------------------------------------
Moody's Investors Service downgraded the ratings on 11 utilities
and infrastructure companies operating in Argentina and placed
their ratings under review for downgrade. The rating action follows
the downgrade of the Government of Argentina's senior unsecured
ratings to Caa2 from B2, and placement of the ratings under review
for downgrade and reflects the strong credit linkages and exposure
these companies have to Argentina's regulations and operating
environment.

At the same time, Moody's has downgraded Agua y Saneamientos
Argentinos S.A.'s (AYSA) baseline credit assessment (BCA) to caa2
from b3, while downgrading its B2 rating to Caa2 and placing the
ratings under review for downgrade.

Issuers and ratings included in this action are as follows:

1) Empresa Distribuidora de Electricidad Salta

Corporate Family Rating downgraded to Caa1 from B1

$65m Senior Unsecured EURO MEDIUM TERM NOTES due 2021 rating
downgraded to Caa1 from B1.

Ratings placed under review for downgrade.

2) Empresa Distribuidora Norte S.A.

Corporate Family Rating downgraded to Caa1 from B1

$176m Senior Unsecured GLOBAL NOTES due 2022 rating downgraded to
Caa1 from B1

Ratings placed under review for downgrade.

3) Albanesi S.A. / Generacion Mediterranea S.A, respectively

Corporate Family Rating downgraded to Caa2 from B2

$336m Backed Senior Unsecured GLOBAL NOTES due 2023 rating
downgraded to Caa2 from B2

Ratings placed under review for downgrade.

Outlook, Changed To Rating Under Review From Negative

4) Transportadora de Gas del Sur S.A.

Corporate Family Rating downgraded to Caa1 from B1

$500m Senior Unsecured Notes due 2025 rating downgraded to Caa1
from B1

Ratings placed under review for downgrade.

Outlook, Changed To Rating Under Review From Negative

5) Aeropuertos Argentina 2000 S.A.

Corporate Family Rating downgraded to Caa1 from B1

$400m Senior Secured GLOBAL NOTES due 2027 rating downgraded to
Caa1 from B1

Ratings placed under review for downgrade.

Outlook, Changed To Rating Under Review From Negative

6) Agua y Saneamientos Argentinos S.A.

Corporate Family Rating downgraded to Caa2 from B2

$500m Senior Unsecured EURONOTES due 2023 rating downgraded to Caa2
from B2

Ratings placed under review for downgrade.

Outlook, Changed To Rating Under Review From Negative

7) Genneia S.A.

Corporate Family Rating downgraded to Caa2 from B2

$500m Senior Unsecured GLOBAL NOTES due 2022 rating downgraded to
Caa2 from B2

Ratings placed under review for downgrade.

Outlook, Changed To Rating Under Review From Negative

8) MSU Energy S.A.

$600m Senior Secured GLOBAL NOTES due 2025 rating downgraded to
Caa2 from B3

Rating placed under review for downgrade.

Outlook, Changed To Rating Under Review From Negative

9) Stoneway Capital Corporation

$665m Senior Secured GLOBAL NOTES due 2027 rating downgraded to
Caa2 from B3

Rating placed under review for downgrade.

Outlook, Changed To Rating Under Review From Positve

10) YPF Energia Electrica S.A.

$400m Senior Unsecured GLOBAL NOTES due 2026 rating downgraded to
Caa2 from B2

Rating placed under review for downgrade.

Outlook, Changed To Rating Under Review From Negative

RATINGS RATIONALE

The rating downgrade coupled with the placement under review for
downgrade for the issuers listed above mainly reflects the
downgrade and placement under review for downgrade of the
sovereign, as all these companies remain subject to government
regulations and local operating environment. Moody's considers that
Argentine Utilities and Infrastructure companies' credit quality is
negatively affected by Argentina's deteriorated operating
environment.

Furthermore, the regulated concessions ratings also incorporate
uncertainties surrounding continuity of policies and the
consistency of the regulatory frameworks and the sufficiency of
rates going forward. Increased consumers' criticism, political
opposition and the upcoming elections pressured the federal
government to postpone a tariff adjustment expected for the second
half of this year. Nevertheless, the downgrade of Argentina's
regulated companies to Caa1, one notch above the sovereign rating,
reflects their relatively strong credit metrics, low leverage and
adequate liquidity combined with comfortable debt maturities'
profiles.

The downgrade of power companies and power projects reflects their
exposure and reliance on the government controlled Cammesa
(Compania Administradora del Mercado Electrico Argentino, the
Argentine government's agency overseeing the wholesale electricity
market) as their key off-taker. It also incorporates liquidity
pressures and the challenges the companies in this sector face to
fund their expansion plans in a more difficult economic
environment, and possible lack of market access. Power companies
also exhibit weaker credit profiles due to high leverage and
tighter liquidity because of the financing needs arising from their
investment programs.

The downgrade of AYSA's BCA to caa2 from b3 reflects the rapidly
deteriorating environment for future tariff adjustments and its
expectation of weakened standalone cash flows, which are currently
insufficient to carry out the company's demanding investment plan
and service debt, relying instead on its support provider, the
Government of Argentina. AYSA's ratings were downgraded to Caa2
from B2 reflecting the application of Moody's joint default
analysis (JDA) framework for Government Related Issuer (GRI), which
incorporates the following factors: i) a BCA of caa2 as a measure
for the rated entity's standalone creditworthiness, ii) the Caa2
rating of the Government of Argentina as the support provider, as
well as iii) Moody's estimates of a high degree of implied
government support in the case of financial distress and iv) a very
high default dependence between AYSA and the Government of
Argentina.

Moody's expects the review period to extend beyond the usual
three-month horizon. The review will focus on the evolution of
policy making at the sovereign level in the current context of
market volatility. In addition, the review will focus on the
specific liquidity pressures amidst the current macroeconomic
conditions and inflationary pressures.

WHAT COULD CHANGE THE RATING UP/DOWN

A further downgrade of the sovereign or evidence of a significant
negative shift in policies or regulations will likely result in
negative rating actions for Argentine infrastructure companies.
Liquidity deterioration in a more challenging operating environment
could also create negative pressure on ratings for those companies
in the power sector that show higher leverage and face significant
investment needs in the next 12 to 18 months.

Moody's does not expect upward pressures in the rated Argentinean
infrastructure companies in the near to medium term.

The principal methodology used in rating Aeropuertos Argentina 2000
S.A. was Privately Managed Airports and Related Issuers published
in September 2017. The principal methodologies used in rating Agua
y Saneamientos Argentinos S.A. were Regulated Water Utilities
published in June 2018, and Government-Related Issuers published in
June 2018. The principal methodology used in rating Albanesi S.A.,
Genneia S.A., YPF Energia Electrica S.A. and Generacion
Mediterranea S.A was Unregulated Utilities and Unregulated Power
Companies published in May 2017. The principal methodology used in
rating Transportadora de Gas del Sur S.A. was Natural Gas Pipelines
published in July 2018. The principal methodology used in rating
Empresa Distribuidora de Electricidad Salta and Empresa
Distribuidora Norte S.A. was Regulated Electric and Gas Utilities
published in June 2017. The principal methodology used in rating
MSU Energy S.A. and Stoneway Capital Corporation was Power
Generation Projects published in June 2018.

PAMPA ENERGIA: Moody's Downgrades Sr. Unsec. Notes Rating to Caa1
-----------------------------------------------------------------
Moody's Investors Service downgraded the ratings for several
non-financial companies operating in Argentina, and all ratings
were placed under review for downgrade. The actions follow the
downgrade of the Argentine government's bond rating to Caa2 from
B2, also placed on review for downgrade, on August 30, 2019.

ISSUERS AND RATINGS DOWNGRADED AND PLACED UNDER REVIEW FOR
DOWNGRADE

Arcor S.A.I.C.'s Corporate Family Rating (CFR) and senior unsecured
global notes' ratings were downgraded to B3 from Ba3. All ratings
were placed under review for downgrade.

Pampa Energia S.A.'s CFR and senior unsecured notes' ratings were
downgraded to Caa1 from B2. The rating of the senior unsecured
notes originally issued by Petrobras Argentina S.A. now assumed by
Pampa Energia S.A. was also downgraded to Caa1 from B2. All ratings
were placed under review for downgrade.

Pan American Energy, S.L.'s CFR was downgraded to B2 from Ba3. The
rating was placed under review for downgrade.

Pan American Energy, S.L., Argentine Branch's backed senior
unsecured global medium-term notes program rating was downgraded to
(P)B2 from (P)Ba3 and the rating of the backed senior unsecured
global medium-term notes was downgraded to B2 from Ba3. All ratings
were placed under review for downgrade.

Raghsa S.A.'s CFR and senior unsecured notes ratings were
downgraded to Caa1 from B2. All ratings were placed under review
for downgrade.

Tecpetrol Internacional S.L.U.'s CFR was downgraded to B2 from Ba3.
The rating was placed under review for downgrade.

TECPETROL S.A.'s backed senior unsecured notes' rating was
downgraded to B2 from Ba3. The rating was placed under review for
downgrade.

Telecom Argentina S.A.'s senior unsecured notes' rating was
downgraded to Caa1 from B1. The rating was placed under review for
downgrade.

YPF Sociedad Anonima's senior unsecured notes ratings was
downgraded to Caa2 from B2. The rating of the medium-term notes
program was downgraded to (P)Caa2 from (P)B2. YPF's Baseline Credit
Assessment (BCA) was downgraded to caa2 from b2. All ratings were
placed under review for downgrade.

RATINGS RATIONALE

The downgrade in ratings and placement under review for downgrade
for these companies follow the downgrade of the Government of
Argentina's ratings to Caa2 from B2 and placement of ratings on
review for downgrade on August 30, 2019. The rating actions reflect
Moody's view that the creditworthiness of these companies cannot be
completely de-linked from the credit quality of the Argentine
government, and thus their ratings need to closely reflect the risk
that they share with the sovereign. Moody's believes that a weaker
sovereign has the potential to create a ratings drag on companies
operating within its borders, and therefore it is appropriate to
limit the extent to which these issuers can be rated higher than
the sovereign, in line with Moody's cross-sector rating methodology
"Assessing the Impact of Sovereign Credit Quality on Other Ratings
" published in June 2019.

Moody's decision to downgrade the Government of Argentina's ratings
reflects the rising expectation of losses for investors as a
consequence of mounting pressures on the government's finances,
most recently reflected in the government's August 28 decision to
delay repayment on over $8 billion of short-term debt and to signal
its intent also to restructure portions of Argentina's medium and
long term debt. Also, the decision to assign Caa2 ratings reflects
Moody's current assessment of losses expected should any
restructuring involve a relatively limited reprofiling of debt
maturities. The decision to place the Caa2 ratings under review for
downgrade reflects the strong downward risk bias, given the
uncertainties associated with such restructurings.

The principal methodology used in rating Pampa Energia S.A.,
TECPETROL S.A. and Tecpetrol Internacional S.L.U. was Independent
Exploration and Production Industry published in May 2017. The
principal methodology used in rating Pan American Energy, S.L. and
Pan American Energy, S.L., Argentine Branch was Global Integrated
Oil & Gas Industry published in October 2016. The principal
methodology used in rating Arcor S.A.I.C. was Global Packaged Goods
published in January 2017. The principal methodology used in rating
Telecom Argentina S.A. was Telecommunications Service Providers
published in January 2017. The principal methodology used in rating
Raghsa S.A was REITs and Other Commercial Real Estate Firms
published in September 2018. The methodologies used in rating YPF
Sociedad Anonima were Global Integrated Oil & Gas Industry
published in October 2016, and Government-Related Issuers published
in June 2018.

TELECOM ARGENTINA: Moody's Downgrades Corp. Family Rating to Caa1
-----------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo S.A.
downgraded the global scale and national scale ratings for several
non-financial companies operating in Argentina, and ratings were
placed under review for downgrade. In the case of Quickfood S.A.,
the national scale rating of its backed senior unsecured notes,
fully guaranteed by its parent company Marfrig Global Foods S.A.
(B1 stable), was upgraded to Aa2.ar from Aa3.ar, while the other
ratings remained unchanged/affirmed. The actions follow the
downgrade of the Argentine government's bond rating to Caa2 from
B2, also placed on review for downgrade, on August 30, 2019.

ISSUERS AND RATINGS DOWNGRADED AND PALCED UNDER REVIEW FOR
DOWNGARDE

Arcor S.A.I.C.'s global scale and national scale senior unsecured
notes' rating was downgraded to B3/A3.ar from Ba3/Aa1.ar. At the
same time, Moody's Investors Service has downgraded to B3 from Ba3
the company's global scale corporate family rating (CFR) and senior
unsecured global notes' rating. All ratings were placed under
review for downgrade.

Asociacion de Cooperativas Argentinas Coop.'s CFR and senior
unsecured bank credit facility ratings were downgraded to
Caa1/Baa3.ar from B1/Aa2.ar. All ratings were placed under review
for downgrade.

Holcim (Argentina) S.A.'s CFR was downgraded to B3/Baa1.ar from
B1/Aa2.ar. The rating was placed under review for downgrade.

Mirgor S.A.C.I.F.I.A.'s CFR was downgraded to Caa1/Ba1.ar from
B2/A2.ar. The rating was placed under review for downgrade.

Raghsa S.A.'s national scale CFR and senior unsecured note ratings
were downgraded to Ba2.ar from A3.ar. At the same time, Moody's
Investors Service has downgraded to Caa1 from B2 Raghsa S.A.'s
global scale CFR and senior unsecured notes' rating. All ratings
were placed under review for downgrade.

Sullair Argentina S.A.'s CFR was downgraded to Caa1/Ba1.ar from
B2/A2.ar. The rating was placed under review for downgrade.

Telecom Argentina S.A.'s CFR was downgraded to Caa1/Baa3.ar from
B1/Aa2.ar and the senior unsecured notes' national scale rating was
downgraded to Baa3.ar from Aa2.ar. At the same time, Moody's
Investors Service has downgraded to Caa1 from B1 Telecom Argentina
S.A.'s global scale senior unsecured notes' rating. All ratings
were placed under review for downgrade.

YPF Sociedad Anonima's issuer rating and senior unsecured bank
credit facility ratings were downgraded to Caa2/B1.ar from
B2/A1.ar. At the same time, Moody's Investors Service has
downgraded to Caa2 from B2 the company's global scale senior
unsecured notes' rating and to (P)Caa2 from (P)B2 the rating of the
medium-term notes program. YPF's Baseline Credit Assessment (BCA)
was lowered to caa2 from b2. All ratings were placed under review
for downgrade.

ISSUER AND RATINGS UNCHANGED IN THE GLOBAL SCALE AND
AFFIRMED/UPGDRADED IN THE NATIONAL SCALE

Quickfood S.A.'s B3 CFR in the global scale was unchanged and the
Baa2.ar national scale CFR was affirmed. The rating of the
company's backed senior unsecured notes, fully guaranteed by its
parent company Marfrig Global Foods S.A. (B1 stable), was unchanged
at B1 in the global scale and upgraded to Aa2.ar from Aa3.ar in the
national scale. The outlook is stable.

RATINGS RATIONALE

Following the downgrade of the Government of Argentina's ratings to
Caa2 from B2 and placement of ratings on review for downgrade on
August 30, 2019. The rating actions reflect Moody's view that the
creditworthiness of these companies cannot be completely de-linked
from the credit quality of the Argentine government, and thus their
ratings need to closely reflect the risk that they share with the
sovereign. Moody's believes that a weaker sovereign has the
potential to create a ratings drag on companies operating within
its borders, and therefore it is appropriate to limit the extent to
which these issuers can be rated higher than the sovereign, in line
with Moody's cross-sector rating methodology "Assessing the Impact
of Sovereign Credit Quality on Other Ratings " published in June
2019.

Moody's decision to downgrade the Government of Argentina's ratings
reflects the rising expectation of losses for investors as a
consequence of mounting pressures on the government's finances,
most recently reflected in the government's August 28 decision to
delay repayment on over $8 billion of short-term debt and to signal
its intent also to restructure portions of Argentina's medium and
long term debt. Also, the decision to assign Caa2 ratings reflects
Moody's current assessment of losses expected should any
restructuring involve a relatively limited reprofiling of debt
maturities. The decision to place the Caa2 ratings under review for
downgrade reflects the strong downward risk bias, given the
uncertainties associated with such restructurings.

The principal methodology used in these ratings was Procedures
Manual to Rate Companies and/or Securities Issued published in
January 2019.



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

BANCO DO ESTADO: Moody's Affirms Ba2 LC Deposit Rating, Outlook Neg
-------------------------------------------------------------------
Moody's Investors Service affirmed all ratings assigned to Banco do
Estado de Sergipe S.A., including its ba2 Baseline Credit
Assessment, as well as its Ba2 and Not Prime for long- and
short-term local currency deposits and Ba3 and Not Prime for long-
and short-term foreign currency deposits. At the same time, Moody's
changed the outlook on the Ba2 local currency deposit rating to
negative from stable. The outlook on the Ba3 long-term foreign
currency deposit rating remains stable.

RATINGS RATIONALE

The negative outlook on Banese's local currency deposit rating
reflects the recent decline in the bank's capitalization ratio,
following a material negative adjustment on equity that reduced its
Moody's tangible common equity to risk-weighted assets ratio
(TCE/RWA) in 248 basis points, to 6.6% in 2Q 2019. The adjustment
was caused by the need to account the actuarial liabilities at
Banese-sponsored private pension fund Instituto Banese de
Seguridade Social - Sergus, triggered by the decline of Brazil's
basic interest rate (SELIC). A lower capital position reduces the
bank's loss-absorption capacity and limits its growth perspective
and competitive strength in its regional market, where the bank
holds 41% of loan market share.

The sizable decline in the capitalization ratio, in turn, has
triggered Banese's capital contingency plan, and considers a
reduction of private assets held in its securities portfolio, which
amounted for 4% of risk-weighted assets. In addition, Banese
intends to issue local currency subordinated notes to increase its
regulatory capital, restoring capital to internal target defined by
the board. However neither measures effect Moody's TCE ratio.
Banese's management also plans to ask its shareholder to reduce
future dividend payouts.

Different interpretation of accounting standards between the bank's
independent auditors, the pension fund regulators (PREVIC), the
local Securities Exchange Commission (Comissao de Valores
Mobiliarios, CVM) and the central bank of Brazil led to Banese
being asked to account the full actuarial obligation of the pension
fund, instead of a partial adjustment relative to a proportional
contribution according to its 39.25% sponsorship. Sergus largely
comprises a defined benefit post-retirement plan, which has been
closed to new members since 2017.

According to Banese's management, the central bank of Brazil is
currently analyzing a request made by the bank that aims to
consider the contributive parity between the fund's participants,
assisted individuals and the sponsor, which would result in a lower
adjustment corresponding to 39.25% of the fund's actuarial deficit,
from 100%, equal to its financial responsibility as the sponsor.
The bank expects a final decision from regulatory authorities in
the 3Q19. In such a scenario, the adjustment effect on the TCE/RWA
ratio would be a reduction of 180 basis points to levels above 8%.
Based on its reported 2Q19 earnings, it would take Banese roughly
two to three quarters for its TCE/RWA ratio to rise to 9% through
internal earnings generation, therefore, reverting the pressure on
its financial profile. In the second quarter, internal capital
generation increased TCE by 25 basis points.

In affirming Banese's ratings, Moody's acknowledges the bank's
entrenched retail franchise in its regional market, which is
supported by a stable 33% market share of core deposits, strong
earnings recurrence and good asset quality metrics. Banese
primarily targets the state's civil servants, which provides it a
captive client base, allowing it to grow ahead of the system
average, while maintaining adequate asset quality. In the first six
months of 2019, the bank's loan book grew by 12%, supporting strong
earnings generation, as suggested by net income 38.46% higher than
one year prior, and an annualized 1.8% net income to tangible
assets ratio, higher than 1.4% average in the last five quarters.
Profitability benefited from loan growth, a rise fee income,
declining provision expenses and relatively stable funding costs,
which helped with steady margins amid declining interest rates.

Despite the positive performance in recent quarters, Banese's
earnings will likely be challenged by growing competition from
large retail banks and slow operational growth. As the bank enters
a new credit growth cycle, capital will be a key driver of its
ability to remain competitive.

WHAT COULD CHANGE THE RATING UP/DOWN

Moody's could downgrade Banese's BCA and local currency deposit
ratings if the bank is unable to restore its capitalization to
levels between 8% and 9% in the next 12 to 18 months, which would
weaken its loss absorption capacity. In addition, in case the bank
materially increases its exposure to riskier loans, future earnings
recurrence could be negatively affected because of higher credit
costs as new loans will season under a still slow-growth economy in
2020.

Banese's rating outlook could return to stable if the bank is able
to maintain loan growth and preserve its profitability in its
regional market, restoring capital position in less than 12 months
and maintaining adequate asset risk and liquidity metrics.

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

Headquartered in Aracaju, Sergipe, Brazil, Banese reported total
assets of BRL5,494.6 million ($1,433.6 million) and total
shareholders' equity of BRL364.6 million ($95.13 million) as of
June 30, 2019.

LIST OF AFFCTED RATINGS

Issuer: Banco do Estado de Sergipe S.A.

Affirmations:

Long-term local currency bank deposit rating, affirmed Ba2, outlook
changed to negative from stable

Short-term local currency bank deposit rating, affirmed Not Prime

Long-term foreign currency bank deposit rating, affirmed Ba3,
outlook stable

Short-term foreign currency bank deposit rating, affirmed Not
Prime

Brazilian long-term bank deposit rating, affirmed Aa3.br

Brazilian short-term bank deposit rating, affirmed BR-1

Long-term local currency counterparty risk rating, affirmed Ba1

Short-term local currency counterparty risk rating, affirmed Not
Prime

Long-term foreign currency counterparty risk rating, affirmed Ba1

Short-term foreign currency counterparty risk rating, affirmed Not
Prime

Brazilian long-term local currency counterparty risk rating,
affirmed Aaa.br

Brazilian short-term local currency counterparty risk rating,
affirmed BR-1

Baseline credit assessment, affirmed ba2

Adjustment baseline credit assessment, affirmed ba2

Long-term counterparty risk assessment, affirmed Ba1(cr)

Short-term counterparty risk assessment, affirmed Not Prime(cr)

Outlook action:

Outlook changed to negative(m) from stable

COMPANHIA ENERGETICA: Moody's Affirms B1 CFR, Outlook Now Pos.
---------------------------------------------------------------
Moody's America Latina affirmed the baseline credit assessment and
global scale corporate family rating of Companhia Energetica de
Minas Gerais - CEMIG of b1 and B1, respectively. The national scale
CFR was upgraded to Baa1.br from Baa2.br. The outlook was changed
to positive from stable.

Concomitantly, Moody's has affirmed the B1 global scale issuer and
senior unsecured ratings of Cemig Distribuicao S.A. (CEMIG D) and
upgraded the national scale issuer and senior unsecured ratings to
Baa1.br from Baa2.br. The outlook was changed to positive from
stable. Moody's has also affirmed the global scale issuer, senior
unsecured, and senior secured ratings of Cemig Geracao e
Transmissao S.A. (CEMIG GT) of B1, and upgraded the national scale
issuer, senior unsecured, and senior secured ratings to Baa1.br
from Baa2.br. The outlook was changed to positive from stable.

CEMIG is a government related issuer (GRI). The state of Minas
Gerais (B2 stable) is the shareholder with majority control, with
50.96% ownership of common shares and 17.03% of overall shares.
CEMIG's B1/Baa1.br ratings consider the following four input
factors within Moody's GRI rating methodology: (i) a low-level
probability of extraordinary support from the state should CEMIG
face financial distress, (ii) Moody's estimates of a very high
level of dependence between the company and the state, (iii)
Moody's rating of the state of Minas Gerais, as well as (iv)
CEMIG's intrinsic credit profile as captured in the baseline credit
assessment of b1.

RATINGS RATIONALE

The rating actions reflect a perception of ongoing improvement in
CEMIG's liquidity profile, and a more prudent liability management
strategy and financial policy. Following refinancing transactions
concluded in late-2017, when the company faced dire debt
refinancing needs, the organization has been able to actively
manage its debt maturity profile while also reducing average cost
of debt in line with the decrease in Brazil's interest base rate.

In July 2019, CEMIG D closed its 7th issuance of debentures
amounting BRL3.7 billion with two series (BRL2.2 billion due 2024
and 1.5 billion due 2026) at an average annual cost of 108,61% of
CDI. Proceeds of the issuance were used to prepay shorter and more
expensive debt at CEMIG D, lengthening the company's average debt
tenor, with pro-forma cash position after the issuance sufficient
to cover short term debt maturities.

The rating actions also reflect continued progress to the asset
divestment plan, with the recent completion of the sale of around
1/3 of its stake at Light S.A. (Ba3/A3.br stable), raising BRL625
million. CEMIG's partial divestment in Light is credit positive
because it demonstrates management's continued commitment to a BRL8
billion asset divestment program announced in mid-2017. Moody's
estimates that after the conclusion of this transaction, CEMIG will
have raised around BRL2.1 billion in asset divestitures, or around
26% of the initially envisioned amount.

Although there has been a positive trend in assets sales, Moody's
still considers CEMIG's leverage moderate and its base case does
not take into account any additional deleveraging benefit from the
divestment plan. However, credit metrics are expected to slightly
improve on the back of decreased cost of debt and enhanced
operational performance in the distribution business, with interest
coverage exceeding 3.5x and CFO pre-W/C-to-Debt exceeding 23% over
the next 12-18 months, compared to a three year average of 3.0x and
21%, respectively, between 2016 and 2018. Should the company close
additional asset sales, Moody's expects leverage to further
decrease.

Moody's also incorporates an expectation that CEMIG's retained cash
flow metrics and free cash flow will meaningfully decrease next
year based on higher dividend distributions following recognition
of BRL1.9 billion of tax gains in its income statement last
quarter, related to the outcome of a judicial dispute for
calculation and payment of PIS/COFINS with double taxation
considering ICMS tax. This gain was partially offset by a
write-down of BRL688 million of accounts receivable from one of its
investees, Renova Energia S.A. As a result, CFO pre-W/C --
Dividends to Debt should decline to around 10-12% over the next
12-18 months from an average of 17% between 2016 and 2018, but
Moody's considers that to be a one-off effect and that CEMIG will
continue to prudently manage its cash position and dividend payout
to stay in compliance with financial covenants.

The rating actions further reflect its view that the company
continues to benefit from the cash flow generation of CEMIG D
following the substantial tariff review in May 2018 (+23% increase
in distribution tariffs), mainly as a result of around BRL5.0
billion in investments made in the distribution network over the
previous review cycle. Moody's expects an increase of around BRL500
million in CFO pre W/C for 2019 as result of the tariff review.

Last year, CEMIG D suffered a significant working capital pressure
due to higher non-manageable costs of energy purchases that take at
least one year to be incorporated in tariffs. However Moody's takes
in consideration the fact that hydrology conditions have improved
in 2019, which is positive for CEMIG's consolidated free cash flow
generation.

The credit view continues to incorporate CEMIG GT's short and
medium term commercial strategy, with maintenance of excess energy
to cover exposure to hydrology risks. It does however reflect the
large share of energy commercialization in the business, with
energy commitments in excess of 200% of own generation. While the
company has managed to be successful in its energy
commercialization, it remains exposed to price risks in the long
term, with high recontracting exposure particularly as of 2023,
which is a risk to CEMIG GT in case if lower-than-expected energy
prices.

The upgrade and change in outlook also consider that the company's
credit quality is less linked to that of its controlling
shareholder, the State of Minas Gerais (B2 stable).

The rating actions on CEMIG D and CEMIG GT reflect that of the
consolidated profile of its parent company, CEMIG, given the
corporate guarantees and cross default clauses embedded in the
various debt instruments across the corporate family, as well as
centralized cash management and use of intracompany lending.

RATINGS OUTLOOK

The positive outlook reflects Moody's expectations that the
company's credit metrics will continue to be moderate going
forward, driven by continuous deleveraging and prudent financial
policy, in addition to an improved and more active liability
management strategy and relatively stable operational performance.

WHAT COULD MOVE THE RATINGS UP/DOWN

The ratings could be upgraded should the company continue to build
on a track record of improved financial policy and more active
liability management, while at the same time, showing signs that
CFO pre-WC/debt and CFO pre-WC + interest/interest will sustainably
be above 18% and 2.5x, respectively. A successful privatization
process would also put positive pressure on the ratings, as the
consolidated credit quality of CEMIG is delinked from that of the
State of Minas Gerais.

A rating downgrade, although unlikely at this time, could happen if
Moody's believes that the company's liquidity risks are not being
prudently managed or if there is a sustainable increase in leverage
such that the company's consolidated CFO pre-WC/debt remains below
15% and/or Net debt/EBITDA, according to covenant definitions,
exceeds 3.5x by December 2019.

RATING METHODOLOGY

The principal methodologies used in rating Companhia Energetica de
Minas Gerais - CEMIG were Regulated Electric and Gas Utilities
published in June 2017, and Government-Related Issuers published in
June 2018. The principal methodology used in rating Cemig Geracao e
Transmissao S.A. was Unregulated Utilities and Unregulated Power
Companies published in May 2017. The principal methodology used in
rating Cemig Distribuicao S.A. was Regulated Electric and Gas
Utilities published in June 2017.

COMPANY PROFILE

Headquartered in Belo Horizonte in the State of Minas Gerais, CEMIG
is a leading Brazilian integrated utility operating in the sectors
of electricity distribution, generation and transmission, with
4,800 megawatts (MW) in installed capacity and around 8,200 km of
transmission lines across the country. The company also owns
controlling equity participation in the electricity utility Light
S.A. and the transmission company Transmissora Alianca de Energia
Eletrica (TAESA, Ba1/Aaa.br stable). Cemig is controlled by the
State of Minas Gerais, which owns 50.96% of the company's voting
capital. For the 12 months ended March 2019, Cemig had net revenue
of BRL22.2 billion and EBITDA of BRL4.4 billion, respectively
(according to Moody's standard adjustments).

OURO VERDE: Fitch Affirms 'B' LT IDR, Outlook Positive
------------------------------------------------------
Fitch Ratings has affirmed Ouro Verde Locacao e Servico S.A.'s
Long-Term Foreign and Local Currency Issuer Default Ratings at 'B'.
Fitch has also affirmed the company's national scale rating and its
7th debenture issuance at 'BBB(bra)'. The Outlook on both Long-Term
ratings is Positive.

The ratings reflect Ouro Verde's improved financial profile
following Brookfield's acquisition of 100% of the issuer's shares
and its BRL500 million capital injection, as well as the completion
of the company's debt restructuring, which has led to lengthening
of the company's debt maturities through 2034, and a lower interest
rate. The Positive Outlook reflects Fitch's belief that Ouro
Verde's recovery should occur within the next 12 to 24 months due
to Brookfield's ownership of the company and its improved liquidity
position.

On July 8, 2019, Cedar Fundo de Investimento em Participacoes
Multiestrategia (Cedar), a Brookfield investment vehicle in Brazil,
acquired 100% of Ouro Verde's shares and voting rights. On the same
date, the company received a BRL500 million cash injection and
concluded the debt restructure of its 5th, 6th, 7th and 8th
debenture issuance. The cash injection comprised a BRL365 million
capital increase and a BRL135 million receivable pay down from the
previous main shareholder.

KEY RATING DRIVERS

New-Ownership Strengthens Business Profile: Ouro Verde's business
profile should improve in the medium term. The financial strength
of its new controlling shareholder should help the company face
competition from larger participants, with stronger financial
profiles and to grow in the fragmented, incipient and
capital-intensive Brazilian market of heavy vehicles and machinery
rentals. Fitch views Brookfield, which has numerous investments in
Brazil, as a strategic owner due to its ability to support an
increase in Ouro Verde's scale and operating competitiveness.

Improved Capital Structure: Fitch expects the recently concluded
debt restructure and the BRL500 million cash injection to improve
Ouro Verde's capital structure, helping the company to manage its
growth while keeping leverage at moderate levels in the medium
term, depending on the company's capex strategy. As of June 2019,
on a pro forma basis, adding BRL300 million into Ouro Verde's cash
position, assuming BRL200 million of the cash injection would
support capex, the adjusted net debt-to-EBITDA ratio should be
3.8x, based on BRL274 million annualized EBITDA and BRL1.4 billion
of pro-forma total debt. For 2019, Fitch forecasts EBITDA over
BRL300 million and net debt-to-EBITDA around 3.0x.

DERIVATION SUMMARY

Ouro Verde's ratings reflect the company's better position to
recover its operating performance and improved financial profile
after the BRL500 million cash injection, but still weaker
competitive position compared with its bigger domestic peers such
as Localiza Rent a Car S.A. (Foreign-Currency IDR BB,
Local-Currency IDR BBB-/Stable), JSL S.A. (Foreign-Currency and
Local-Currency IDRs BB/Negative) and Companhia de Locacao das
Americas - Locamerica (AA(bra)/Positive). Those comparable peers
also have better financial profiles.

After its debt restructuring, Ouro Verde has slightly lower
leverage and higher rental margins than JSL. However, the company's
access to new funding has yet to be tested. Additionally, compared
with Localiza, JSL and Locamerica, Ouro Verde has smaller scale and
lower bargain power within the industry, which are key variables in
an industry that demands high capital investing and an established
network for asset disposal.

KEY ASSUMPTIONS

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

  - Cash inflow of BRL500 million;

  - Lengthened debt maturity profile.

RATING SENSITIVITIES

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

  - Improvement in Ouro Verde's business position and client base
without jeopardizing its financial profile.

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

The Outlook may be revised to Stable in case of difficulty in
achieving the triggers for the upgrade.
The ratings may be downgraded in case of:

  - Further deterioration of the company's business position;

  - Deterioration of the liquidity profile, leading to refinancing
risks;

  - Declining EBITDA and profitability levels.

LIQUIDITY

Improved Liquidity: The BRL500 million cash injection should
support capex and strengthen the company's cash position,
significantly improving the financial flexibility of Ouro Verde,
which has a track record of weak liquidity. Additionally, expected
lower funding cost and a better spread debt amortization schedule
should improve Ouro Verde's financial profile. Fitch has yet to
have a clear view on management growth strategy, which will help to
better forecast liquidity and cash flow. After the debt
restructure, total and short-term debt reached BRL1.4 billion and
BRL150 million, respectively, with expected cash/short-term debt
around 2.5x.

FULL LIST OF RATING ACTIONS

Fitch has affirmed the following ratings:

Ouro Verde Locacao e Servico S.A

  -- Long-Term Foreign and Local Currency IDRs at 'B'/Outlook
Positive;

  -- Long-Term National Scale Rating at 'BBB(bra)'/Outlook
Positive;

  -- Senior unsecured 7th debenture issuance at 'BBB(bra)'.

VALE SA: Moody's Affirms Ba1 CFR, Alters Outlook to Stable
----------------------------------------------------------
Moody's America Latina Ltda. affirmed Vale S.A.'s Ba1 (global
scale) and Aaa.br (national scale) corporate family rating and the
Ba1/Aaa.br ratings on its senior unsecured local notes. The outlook
changed to stable from negative.

Ratings actions:

Issuer: Vale S.A.

LT Corporate Family Rating: affirmed at Ba1 (global scale)/ Aaa.br
(national scale)

Senior unsecured notes (Debentures de Infraestrutura): affirmed at
Ba1/Aaa.br

Outlook actions:

Issuer: Vale S.A.

Outlook, Changed to Stable from Negative

RATINGS RATIONALE

The change on the outlook to stable from negative is supported by
the higher visibility on the costs and financial liabilities that
Vale will incur as a result of the accident with the tailings dam
at the Corrego do Feijao mine in Brumadinho, state of Minas Gerais.
Accordingly, Vale has provisioned a total of $6 billion in 1H2019,
which encompasses actions for socioeconomic and environmental
recovery of the areas affected and will be disbursed mostly during
2019-2021. As Vale continues to generate positive free cash flows,
Moody's does not expect any significant impact in the company's
liquidity or leverage.

The gradual return of operations that have been suspended after the
accident is also a consideration for the stable outlook. Out of the
93 million tons lost or suspended after the accident, about 42
million tons has returned, 20 million tons could gradually return
in late 2019/early 2020 and the remaining 30 million tons related
to the decommissioning of upstream tailings dams will return in
about 2-3 years.

Vale's Ba1 ratings continue to be supported by the company's
diversified product base and low cost position, and substantive
portfolio of long lived assets of iron ore, nickel, copper and
coal. The enhanced production profile with S11D and significant
reduction in debt levels over the past few years are also important
factors for the Ba1 ratings, which better position Vale to
withstand volatility in the prices for its major products. Despite
all the cash disbursements related to the accident, Vale has been
to maintain a comfortable liquidity position, with $6 billion in
cash and $5 billion in committed credit facilities at the end of
June 2019, with total debt at $15.8 billion, similar to the debt
level at the end of December 2018 ($15.5 billion).

The ratings are constrained by the implications of the tailings dam
accident in Brumadinho, in particular from an environmental, social
and governance perspective. Moody's does expect material changes
and higher scrutiny in the company's corporate governance
practices, with a strong strategic focus on safety and operational
excellence. As those initiatives are implemented over time, Moody's
expects to see evidence of stricter risk management and oversight
of all operations. Besides, Vale remains exposed to iron ore and
base metals market fundamentals and to contingent liabilities
related to Samarco.

An upgrade of Vale's rating would require evidences of material
enhancements in the company's corporate governance oversight and
risk controls, while production gradually normalizes and there are
no material additional provisions or cash disbursements related to
the accident. An upgrade would also depend on the maintenance of a
solid liquidity, credit profile and positive free cash flow
generation, supported by leading market positioning in its main
segments and low-cost operations. Quantitatively, an upgrade would
also require Vale's adjusted total debt/EBITDA to remain below 2.5x
and EBIT/interest expense above 5x on a sustainable basis.

Conversely, Vale's ratings could be downgraded should the ultimate
costs related to the disaster in Brumadinho be materially above the
amounts already provisioned due to higher fines and settlements,
litigations and class actions, or if operations do not fully
recover within the expected timeframe, affecting cash costs and
free cash flow generation. Quantitatively, the ratings or outlook
could suffer negative pressure should conditions for iron ore and
base metals deteriorate, leading to lower profitability, with
leverage ratios (total debt to EBITDA) trending towards 3x or above
and EBIT/Interest expense falling below 4x. A marked deterioration
in the company's liquidity position would also precipitate a
downgrade.

The principal methodology used in these ratings was Mining
published in September 2018.

VALE SA: Moody's Affirms Ba1 Sr. Unsec Notes Rating, Outlook Stable
-------------------------------------------------------------------
Moody's Investors Service affirmed Vale S.A.'s Ba1 senior unsecured
ratings and the ratings on the debt issues of Vale Overseas
Limited, fully and unconditionally guaranteed by Vale S.A. Moody's
also affirmed the Ba2 senior unsecured ratings of Vale Canada Ltd.
The outlook changed to stable from negative.

At the same time, Moody's America Latina Ltda. affirmed Vale's
Ba1/Aaa.br corporate family rating and the Ba1/Aaa.br ratings on
its senior unsecured notes. The outlook changed to stable from
negative.

Ratings actions:

Issuer: Vale S.A.

senior unsecured notes due 2023: affirmed at Ba1

senior unsecured notes due 2042: affirmed at Ba1

Issuer: Vale Overseas Limited

gtd senior unsecured notes due 2021: affirmed at Ba1

gtd senior unsecured notes due 2022: affirmed at Ba1

gtd senior unsecured notes due 2026: affirmed at Ba1

gtd senior unsecured notes due 2034: affirmed at Ba1

gtd senior unsecured notes due 2036: affirmed at Ba1

gtd senior unsecured notes due 2039: affirmed at Ba1

Issuer: Vale Canada Ltd.

senior unsecured bonds due 2032: affirmed at Ba2

Outlook actions:

Issuer: Vale Overseas Limited

Outlook, Changed to Stable from Negative

Issuer: Vale Canada Ltd.

Outlook, Changed to Stable from Negative

RATINGS RATIONALE

The change on the outlook to stable from negative is supported by
the higher visibility on the costs and financial liabilities that
Vale will incur as a result of the accident with the tailings dam
at the Corrego do Feijao mine in Brumadinho, state of Minas Gerais.
Accordingly, Vale has provisioned a total of $6 billion in 1H2019,
which encompasses actions for socioeconomic and environmental
recovery of the areas affected and will be disbursed mostly during
2019-2021. As Vale continues to generate positive free cash flows,
Moody's does not expect a significant impact in the company's
liquidity or leverage.

The gradual return of operations that have been suspended after the
accident is also a consideration for the stable outlook. Out of the
93 million tons of iron ore lost or suspended after the accident,
about 42 million tons has returned, 20 million tons could gradually
return in late 2019/early 2020 and the remaining 30 million tons
related to the decommissioning of upstream tailings dams will
return in about 2-3 years.

Vale's Ba1 ratings continue to be supported by the company's
diversified product base and low cost position, and substantive
portfolio of long lived assets of iron ore, nickel, copper and
coal. The enhanced production profile with S11D and significant
reduction in debt levels over the past few years are also important
factors for the Ba1 ratings, which better position Vale to
withstand volatility in the prices for its major products. Despite
all the cash disbursements related to the accident, Vale has been
able to maintain a comfortable liquidity position, with $6 billion
in cash and $5 billion in committed credit facilities at the end of
June 2019, and total debt of $15.8 billion, similar to the levels
observed at the end of December 2018 ($15.5 billion).

The ratings are constrained by the implications of the tailings dam
accident in Brumadinho, in particular from an environmental, social
and governance perspective. Moody's does expect material changes
and higher scrutiny in the company's corporate governance
practices, with a strong strategic focus on safety and operational
excellence. As those initiatives are implemented over time, Moody's
expects to see evidence of stricter risk management and oversight
of all operations. Besides, Vale remains exposed to iron ore and
base metals market fundamentals and to contingent liabilities
related to Samarco.

Vale Canada's Ba2 ratings reflect its weaker operating performance
compared to Vale's and the fact that Vale S.A. does not guarantee
its 2032 notes, while it continues to incorporate Vale's ability to
support Vale Canada. The rating also considers this subsidiary's
major position in the global nickel market, its large asset base
and strategic importance to its parent.

An upgrade of Vale's rating would require evidences of material
enhancements in the company's corporate governance oversight and
risk controls, while production gradually normalizes and there are
no material additional provisions or cash disbursements related to
the accident. An upgrade would also depend on the maintenance of a
solid liquidity, credit profile and positive free cash flow
generation, supported by leading market positioning in its main
segments and low-cost operations. Quantitatively, an upgrade would
also require Vale's adjusted total debt/EBITDA to remain below 2.5x
and EBIT/interest expense above 5x on a sustainable basis.

Conversely, Vale's ratings could be downgraded should the ultimate
costs related to the disaster in Brumadinho be materially above the
amounts already provisioned due to higher fines and settlements,
litigations and class actions, or if operations do not fully
recover within the expected timeframe, affecting cash costs and
free cash flow generation. Quantitatively, the ratings or outlook
could suffer negative pressure should conditions for iron ore and
base metals deteriorate, leading to lower profitability, with
leverage ratios (total debt to EBITDA) trending towards 3x or above
and EBIT/Interest expense falling below 4x. A marked deterioration
in the company's liquidity position would also precipitate a
downgrade.

The principal methodology used in these ratings was Mining
published in September 2018.



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

DOMINICAN REPUBLIC: Jan - July Revenue Jumps 10.1% to US$7.7BB
--------------------------------------------------------------
Dominican Today reports that during the January-July 2019 period,
govt. revenue reached RD$390.2 billion (US$7.7 billion), including
RD$378 million in donations, a 10.1% jump over the same period of
2018, with an additional RD$35.8 billion.

The General Directorate of Tax Policy and Legislation of the
Ministry of Finance reported on this in a statement, where he
detailed that the General Directorate of Internal Taxes raised
287,683 million pesos, representing an increase of 10.5% compared
to 2018, according to Dominican Today.

The General Directorate of Customs pocketed 80,366 million in tax
revenue, that is, 6.3% more than in 2018; the National Treasury
received 21,777 million pesos, which represents an additional 20%
than in the first seven months of last year, the report relays.

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).

DOMINICAN REPUBLIC: Power Companies Meet National Demand
--------------------------------------------------------
Dominican Today reports that Dominican Republic's power companies
grouped in Asociacion Dominicana de la Industria Electrica (ADIE)
said the national electric grid currently has 2,970 megawatts
available to meet all the demand of the electricity distribution
companies.

Based on the grid's performance in 2018, the ADIE revealed a
surplus of available energy of 254 megawatts, if the country's
maximum demand is taken into account, which reached 2,700
megawatts, according to Dominican Today.

According to the ADIE, these 2,970 megawatts correspond to the
installed capacity of both thermal and renewable and hydroelectric
plants, which are available and operating in the system, the report
relays.

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).



=========
H A I T I
=========

HAITI: Crisis Deepens, Gas Shortage Result in Violent Protests
--------------------------------------------------------------
Dominican Today reports that at the gas station located on the road
to Mal Passe, Haiti, vehicles await fuel as the shortage in Haiti
has resulted in violent protests by the Haitian opposition that
also demands that president Jovenel Moise step down, as to blame
for the crisis.

The only gas station in Jimani, Dominican Republic (west) on the
border with Haiti, has run out of fuel due to a crunch in that
country. The gas station supplies both local vehicles, as well as
those from Haiti, according to the station managers, notes
Dominican Today.

Listin reports that Dominican authorities don't restrict the sale
of fuels to drivers from Haiti, except in drums or large tanks,
adds the report.



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

METROFINANCIERA SAPI: Moody's Lowers Series A Certs Rating to Caa2
------------------------------------------------------------------
Moody's de Mexico S.A. de C.V. downgraded Metrofinanciera - MFCB
05U Series A Certificates to Caa2 (sf) (Global Scale, Local
Currency) and Caa1.mx (sf) (Mexican National Scale). The underlying
collateral consists of first-lien, fixed-rate residential mortgage
loans denominated in UDIS and granted primarily to low-income
borrowers in Mexico.

The rating actions are as follows:

Servicer: Metrofinanciera, S.A.P.I de C.V SOFOM. E.R

Issuer: CIBanco, S.A., Institucion de Banca Multiple, Fiduc.

Metrofinanciera - MFCB 05U Series A Certificates -- Downgrade
ratings to Caa2 (sf) (Global Scale, Local Currency) from Caa1 (sf)
(Global Scale, Local Currency) and to Caa1.mx (sf) (Mexican
National Scale) from B3.mx (sf) (Mexican National Scale).

RATINGS RATIONALE

The rating downgrade reflects the ongoing, weak performance of the
underlying pool and Moody's updated loss expectation on the pool,
together with its expected lifetime recoveries on the affected
certificates given the available credit enhancement and the
payments received to date. The downgrade also considers a severity
of loss assumption of 100% and expected losses of 49% of the total
pool balance for the pool associated with the MFCB 05U Series A
Certificates. The securitization trust has received relatively low
recoveries from sales of real estate owned associated with
defaulted loans (REOs). Per performance reports, the deal has a
reported overcollateralization level of -189% (excluding performing
loans), compared to -167% one year ago.

The period of time covered in the financial information used to
determine MFCB 05U certificate's rating is between September 2005
and June 2019 (source: portfolio of underlying collateral,
information provided by the originator; historical performance
information on deals previously rated by Moody's, periodic
collections and remittance reports from servicers, trustees and
common representative agents.)

Rating Methodology

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
June 2019.

Factors that would lead to an upgrade or downgrade of the ratings:

FACTORS THAT COULD LEAD TO A DOWNGRADE:

Factors that could lead to a rating downgrade include: a
deterioration in the performance of the underlying collateral that
results in higher expected losses, lower cash availability and
further weakening of the certificates' available credit
enhancement.

FACTORS THAT COULD LEAD TO AN UPGRADE:

  - Improvement in the performance of the underlying collateral
that results in lower expected losses, significant improvement in
the level of recoveries on defaulted and REO loans, improved
liquidity and strengthening of the certificates' available credit
enhancement.



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

CITGO PETROLEUM: S&P Affirms 'B-' Long-Term ICR
-----------------------------------------------
S&P Global Ratings affirmed its 'B-' long-term issuer credit
ratings on CITGO Holding Inc. and core subsidiary CITGO Petroleum
Corp.

The 'B+' issue-level rating on CITGO Petroleum's senior secured
debt and 'B' issue-level rating on CITGO Holding's outstanding
senior secured debt is unchanged. The recovery rating on CITGO
Petroleum's debt remains '1', which indicates the likelihood of
very high (90%-100%; rounded estimate: 95%) recovery following a
default. The recovery rating for CITGO Holding's debt remains '2',
reflecting its expectation for substantial (70%-90%; rounded
estimate: 80%) recovery.

The stable outlook reflects S&P's view that the rating on CITGO
will continue to be constrained by parent PDVSA Petroleo S.A.,
which remains in selective default on most of its obligations. S&P
does not foresee a near-term change in this group status. Since
the
interim (Guaido) Venezuelan government appointed a new board of
directors at CITGO, the rating agency does not believe the Maduro
government could take any action that harms the company's
operational capability. Operationally, S&P expects the refineries
to continue to run at high utilization and manage leverage between
2x-3x.

"While we consider it unlikely, we could lower the rating if a
PDVSA bankruptcy proceeding were to include CITGO Holding, such
that assets could be sold to cover PDVSA's debts," S&P said.

"We could raise the rating, possibly by multiple notches, if CITGO
is sold to a company with a stronger credit profile than PDVSA,"
the rating agency said.


                           *********


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

Troubled Company Reporter-Latin America is a daily newsletter
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USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
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Chapman, Editors.

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