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

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

          Tuesday, November 12, 2019, Vol. 20, No. 226

                           Headlines



B R A Z I L

ANDRADE GUTIERREZ: Fitch Rates New $400MM Secured Notes 'CCC+'
STATE OF ALAGOAS: S&P Affirms BB- Global Scale ICR, Outlook Stable


C O S T A   R I C A

COSTA RICA: S&P Assigns 'B+' Rating on New US$1.5BB Unsec. Notes


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Easier Trade, Lower Costs Must Be Priorities
DOMINICAN REPUBLIC: Guatemala to Use Ports; Discloses US$2BB JV


J A M A I C A

JAMAICA: Auto Dealers Predict Fall in Car Prices
JAMAICA: Tobacco Industry Regulations Act to be Repealed


P E R U

PERU: Looking to Diversify Exports to China, Minister Says


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Discloses Joint Venture with Chevron
VENEZUELA: EU Extends Sanctions for a Year

                           - - - - -


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B R A Z I L
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ANDRADE GUTIERREZ: Fitch Rates New $400MM Secured Notes 'CCC+'
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Fitch Ratings assigned a 'CCC+'/'RR4' rating to the proposed senior
secured notes to be issued by Andrade Gutierrez International S.A.
in the amount of approximately USD400 million due November 2024.
The notes will be fully and irrevocably guaranteed by Andrade
Gutierrez Engenharia S.A. (CCC+/Stable, CCC(bra)/Stable). The notes
will also be secured by CCR S.A.'s (AA(bra)/Stable) shares, owed by
Andrade Gutierrez Participacoes S.A. (not rated) with total amount
of guarantees depending on the success of the group's liability
management strategy. Proceeds from the senior secures notes will be
used to prepay AGI's senior secured notes due August 2021, in the
amount of USD356 million.

The rating incorporates AGE's still weak operating results and the
expectation of a gradual improvement in operating cash flow
visibility, supported by adequate performance of new contracts,
improving operating margins and deleverage capacity. AGE's backlog
increased by BRL8.2 billion in the last 30 months, reaching BRL10
billion in June 2019. The company still has the challenge to
continue the turnaround of its operations and recover the backlog
on a sustainable basis in order to improve the overall credit
quality. The gradual recovery also depends on the Brazilian
macroeconomic scenario and growing investments in infrastructure.
Fitch projects negative FCF during the next three years due to
expected dividends distribution for the group to serve Lava-Jato's
penalties.

In Fitch's opinion, the proposed liability management will provide
a temporary relief to the group's refinancing risk. AGE's
refinancing risk will reduce following the success of the 2024 bond
issuance, which will allow time for the company to pursue its
operating turnaround. The strategy is to issue simultaneously a new
proposed debentures at AGPar, in the amount between BRL300 million
and BRL350 million, and prepay part of the BRL1.85 billion
debentures, and also extend amortization profile and release of
guarantees of CCR's shares to offer for AGI notes. If successful,
AGPar will have lower refinancing pressure during 2020, however,
liquidity should not be compatible with principal and coupon
payments starting in 2021. The group's ultimate parent AGSA also
has about BRL300 million of debt maturing in 2020 that should be
extended to annual amortizations between 2020 and 2022. The agency
views the company's financial flexibility due to CCR's shares as
positive and mitigates part of the group's high refinancing risk.

KEY RATING DRIVERS

Moderate Improvement in Business Environment: In Fitch's opinion,
the operating environment for the Engineering and Construction
companies in Brazil should gradually recover as infrastructure
projects resume. The federal government initiatives to reduce
infrastructure bottlenecks and attract private investors could
increase demand for large engineering contracts and should
positively affect AGE's backlog expansion in the medium term. There
are auctions estimated to be launched during the next two to three
years in ports, airports, toll roads, railways, and other areas
that should contribute to a favorable industry cycle.

Ongoing Operating Turnaround: AGE has successfully added BRL8.2
billion to its backlog during the past 30 months, reaching BRL10
billion in June 2019. The company's business strategy to turnaround
operations has focused on high quality projects and clients, as
well as engineering solutions. About 49% of the existing backlog is
from private clients and 51% is in Brazil. The company demonstrates
capacity to renovate its operations after Lava-Jato restrictions,
which poses a competitive advantage relative to other local players
that are still restructuring operations, negotiating financial
obligations and settling plea bargain agreements.

Operating Cash Flow to Improve: Fitch projects recurring EBITDA of
BRL253 million for 2019 and BRL405 million for 2020, with an 8%
margin, and cash flow from operations (CFFO) of BRL386 million and
BRL216 million, respectively. The expected recovery considers the
contracts already in the company's backlog and a gradual recovery
of new projects. However, operating results remained weak and
EBITDA was negative BRL32 million in 2018 and negative BRL20
million in the first half 2019. EBITDA does not include about
BRL216 million of non-recurring income from receivable accounts
originated by legal action (precatorios) in the second quarter of
2019, as per Fitch's methodology. AGE also needs to collect
past-due receivables to improve its credit profile. A deterioration
of the business environment and a backlog reduction could nullify
Fitch's expectation of operating cash flow improvement.

Dividends to Pressure FCF: AGE is expected to report a positive FCF
of BRL107 million in 2019 and negative FCF of BRL34 million in 2020
and BRL111 million in 2021. Cash flow should be pressured by annual
dividends of BRL185 million to BRL190 million to service the fines
from the plea bargain agreements, and other related expenses. In
the LTM ended June 2019, the company reported FCF of BRL38 million.
The group signed about BRL1.6 billion of legal liabilities
following the agreements with MPF, antitrust CADE, Brazilian
General Counsel's Office (AGU) and Controllers' General Office
(CGU).

Leverage to Reduce: Fitch forecasts AGE to reduce net adjusted
leverage, measured by net adjusted debt/EBITDA ratio, to 3.7x in
2019 and 2.4x as of 2020 benefiting from higher EBITDA generation.
Net adjusted debt is expected to reduce by BRL400 million in 2019,
to BRL1 billion, due to positive working capital inflow. In June
2019, 79% of AGE's total adjusted debt of BRL1.8 billion was
composed of AGI's bonds (BRL1.4 billion), while 14% (or BRL259
million) consisted of working capital lines.

High FX Exposure: AGE is exposed to foreign exchange risks, as
about 88% of the company's total adjusted debt, including AGI's
bonds, was denominated in foreign currency in June 2019. About 38%
of the company's revenues were generated abroad in the first half
of 2019. Going forward, as AGE executes more contracts in Brazil,
this gap between hard currency inflows and outflows should expand.
AGE's foreign currency debt and the coupons are not hedged.

DERIVATION SUMMARY

AGE's credit profile compares positively with its local peer
Odebrecht Engenharia e Construcao S.A. (OEC; RD). AGE has been
successful in slowly adding projects to its order book, which is
expected to be converted in revenues and operating cash flow.
Meanwhile, OEC continues in the restructuring process of Odebrecht
Finance Limited (OFL) bonds and has obtained no relevant contracts.
However, AGE's rating is weaker than Salini Impregilo S.p.a.
(BB/Negative), which, despite the recent downgrade on execution
risks related to Astaldi acquisition, continues to benefit from a
relatively strong business profile, characterized by solid market
shares, and extensive order book, which is considered to be in line
with an investment-grade rating.

KEY ASSUMPTIONS

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

  -- Backlog of approximately BRL11 billion stable for the next
     three years, in line with the current levels;

  -- Contracts executed on average in 2.0 to 2.5 years;

  -- Bidding and cost control discipline;

  -- Sale of Hospital Metropolitano for BRL31 million in 2019;

  -- Release of BRL70 million in restricted cash in 2019 and BRL30

     million in 2020;

  -- Annual dividends between BRL185 million to BRL190 million.

KEY RECOVERY RATING ASSUMPTIONS

The recovery analysis assumes that AGE would be considered a
going-concern (GC) in bankruptcy and that the company would be
reorganized rather than liquidated. Fitch has assumed a 10%
administrative claim.

Going-Concern Approach

  -- AGE's GC EBITDA of BRL270 million is based on Fitch's
     forecasts for 2019 plus dividends received from
     unconsolidated investments;

  -- Fitch considered no gains from the potential collection of
     past-due receivables and legal claims;

  -- Fitch's GC EBITDA considers the execution of firmed contracts
     scheduled for 2019 at a historical margin of 7% to 8%;

  -- An EV multiple of 5x is used to calculate a
     post-reorganization valuation;

  -- Fitch's GC EBITDA considers AGI's bonds 1st lien guarantee
     of 38.6 million CCR shares at an average price of the past
     12 months of BRL12.37, leading to a guarantee of BRL475
million or 33.8% of the outstanding USD356 million bond. At the
lowest price of CCR shares over the past 12 months (BRL7.88), this
guarantee would be valued at BRL304 million, covering 21.6% of
AGI's outstanding bonds. Considering the latest price BRL16.00 for
CCR, the 1st lien guarantee coverage would reach 43.9%;

  -- The Recovery Rating is capped at 'RR4' as Brazil is classified
as a Group D country by Fitch and represents a recovery prospect
between 31% and 50%.

Liquidation Value Approach

Fitch excluded the liquidation value (LV) approach because
Brazilian bankruptcy legislation tends to favor the maintenance of
the business in order to preserve direct and indirect jobs.
Moreover, in extreme cases where LV was necessary, the recovery of
the assets has proved very difficult for creditors.

RATING SENSITIVITIES

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

  -- Increased cash flow generation capacity on a sustainable
basis, with high quality backlog, providing increasing visibility
of cash flow and leverage reduction.

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

  -- Failure to execute and renew its order book and recover
operating cash flow;

  -- Failure to improve the group's debt structure.

LIQUIDITY

Group's High Refinancing Risk in 2021: In Fitch's opinion, the
proposed liability management will provide only a temporary relief
to the group's refinancing risk. Although AGE's refinancing risk
will reduce following the success of the 2024 bond issuance, the
group will remain with high refinancing pressure starting in 2021.
As of June 30, 2019, AGE's readily available cash, as per Fitch's
criteria, was BRL384 million and covered 152% short-term debt
maturities of BRL253 million and Fitch expects the company to
successfully continue to roll over working capital needs. The
proposed 2024 bonds will provide an important relief to AGE's cash
flow that will have annual coupons payments of around USD33
million, starting in May 2020, and annual dividends of BRL185
million to BRL190 million to service the fines from the plea
bargain agreements. AGE is only allowed to distribute dividends to
service the plea bargain agreements, and is restricted from
distributing dividends to shareholders. The expected recovery of
AGE's operating cash flow will be key to meet these obligations.

The group refinancing strategy also includes the issuance of a new
debenture at AGPar, in the amount between BRL300 million and BRL350
million, with two-year grace period and final maturity in November
2025. Part of the proceeds will be used to pre-pay the BRL1.85
billion debenture with Bradesco and Banco do Brasil at AGPar, which
have agreed to extend the final maturity to 2024, from 2022. If
successful, AGPar will have annual coupon payments of about BRL170
million that should be covered by CCR and COPER's dividends flow.
However, Fitch does not expect cash flow to be sufficient to cover
annual principal amortizations of BRL400 million in 2021 and 2022.
AGPar's and AGE's debt do not have cross defaults. AGSA also has
about BRL300 million of debt maturing in 2020 that should be
extended to annual amortizations of about BRL100 million between
2020 and 2022.

AGPar's shares at CCR provide important financial flexibility to
the group. AGPar has 14.86% of CCR shares, equivalent to about BRL5
billion at current prices. The proposed terms of the new
transactions should release additional guarantees to AGE's 2024
bonds that could reach more than 100%.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3. ESG issues are credit neutral
or have only a minimal credit impact on the entity, either due to
their nature or the way in which they are being managed by the
entity.

FULL LIST OF RATING ACTIONS

Fitch has assigned the following rating:

Andrade Gutierrez International S.A.

  -- USD400 million senior secured notes due in 2024 'CCC+'/'RR4'
(guaranteed by AGE and CCR shares).

Fitch currently rates AGE and AGI as follows:

Andrade Gutierrez Engenharia S.A.

  -- Long-Term Foreign Currency Issuer Default Rating (IDR)
'CCC+';

  -- Long-Term Local Currency IDR 'CCC+';

  -- National Scale Long-Term Rating 'CCC(bra)'.

Andrade Gutierrez International S.A.

  -- USD356 million senior secured notes due in 2021 'CCC+'/'RR4'
(guaranteed by AGE).

The Rating Outlook for the corporate ratings is Stable.

STATE OF ALAGOAS: S&P Affirms BB- Global Scale ICR, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings, on Nov. 7, 2019, affirmed its global scale
'BB-' long-term foreign and local currency issuer credit ratings on
the state of Alagoas. S&P also affirmed its national scale 'brAA+'
rating on the state. The outlook on both scale ratings remains
stable.

Outlook

The stable outlook reflects S&P's view that Alagoas will continue
to post surpluses of more than 5% of operating revenue, along with
moderate after-capex surpluses, in the next 12 months amid a
diminishing debt burden and cash levels that comfortably cover the
state's debt service.

Downside scenario

S&P said, "We could lower the ratings on Alagoas in the next 12
months if its budgetary performance deteriorates, reflecting
impaired fiscal practices or if the liquidity position has worsened
beyond our expectations. We could also downgrade Alagoas in the
next 12 months if we were to lower the sovereign local and foreign
currency ratings."

Upside scenario

Given that S&P doesn't believe Alagoas meets the conditions to have
higher ratings than those on the sovereign, it would only raise the
ratings on the state in the next 12 months if it was to raise its
local and foreign currency ratings on Brazil. That would also have
to be accompanied by a sustained increase in the state's own-source
revenue, such that Alagoas would be less dependent on federal
transfers and its budgetary performance less prone to volatility.

Rationale

The 'BB-' global scale ratings on the state of Alagoas reflect its
sound fiscal performance, with operating and after-capex surpluses.
The state has a weaker socio-economic profile than those of other
Brazilian states and is dependent on government transfers, which
weigh on the rating. However, the state's revenue and expenditure
measures since 2015 have mitigated these vulnerabilities and
contributed to balanced budgetary performance. Despite the current
reform momentum in Brazil, S&P's base-case scenario assumes that
structural rigidities in the intergovernmental framework will
persist in the next two years, which along with the state's
insufficiently funded pension system, will challenge the
administration's ability to stave off such pressures. The state's
debt burden remains high, but it's declining in relative terms.

Alagoas to continue focusing on mitigating strains from a rigid
institutional framework and weak socio-economic profile

In October 2018, Governor Renan Filho from the PMDB party was
reelected for a second term until 2022. The governor has broad
support in the state legislature, given that his political
coalition continues to hold a majority. S&P believes this will be
pivotal to pass key pieces of legislation such as the ongoing
downsizing in the state payroll as well as efforts to strengthen
local tax revenue collection. Some of the administration's main
priorities are to maintain balanced fiscal accounts and increase
transparency and accountability, which it assesses as credit
strengths. Recently, the state completed the framework to implement
compliance policies for the public administration, along with
digitizing its public accounts.

Commitment and ability in implementing policies to promote fiscal
sustainability is key for Brazilian local and regional governments
(LRGs). This is because S&P's base-case scenario assumes--despite
the current reform momentum in the country--that structural
rigidities will persist in the next two years. The benefits of the
potential reforms will materialize in the medium term, while
passing and adopting them will most likely take a few years.
Moreover, other structural rigidities in the intergovernmental
framework prevail, such as constitutional mandates that link
revenue increases to higher spending on health and education,
complicated tax codes, and burdensome red tape. S&P believes these
factors inhibit LRGs' capacity to address crucial long-term
spending trends and financing options. Therefore, it believes the
institutional framework for Brazilian LRGs is volatile and
unbalanced.

Alagoas is among Brazil's poorest states, which weighs on its
creditworthiness. Its estimated GDP per capita was $4,558 for
2016-2018, which is roughly half of our estimate for the national
level during the same period. Therefore, the state's subpar
socio-economic conditions is a rating constraint, which are weaker
than those of other Brazilian states such as Santa Catarina. Main
economic activities are public administration, tourism, and
agriculture (mainly the production of sugar and alcohol, which is
the second-largest employer in the state after the public sector).
Brazil's sluggish economic growth also impacts S&P's economic
assessment of the state.

Sound fiscal execution results in sufficient liquidity amid a
declining debt burden in relative terms

S&P said, "We expect Alagoas to maintain a balanced budgetary
performance in 2019-2021, with operating surpluses above 5% of
operating revenues and moderate surpluses after capex. Our
base-case scenario assumes that the state will continue focusing on
strengthening its revenue collection and taking measures to control
spending, including payroll." Nevertheless, given its weak and
narrow economic base, Alagoas depends heavily on transfers from the
federal government, which account for about half of Alagoas' total
revenue. This, along with spending pressures and potential
contingencies following the recent oil spill in the country's
northeast, could generate volatility in budgetary performance.

One key source of pressure for Alagoas is its burdensome pension
system. Even though the state has taken actions to improve
sustainability of the system and increase transparency, its pension
deficit totaled R$1.3 billion in 2018 (16% of operating revenue)
and is likely to reach R$1.8 billion by 2022. Spending on retired
public-sector employees accounts for about 40% of the state
payroll, which underscores these challenges. The administration
continues aiming at measures to diminish spending pressures and
generate revenue to cover the pension deficit. Recent approval of
pension reform at the federal level is likely to be adopted by the
state, which would bring some relief over the medium term, although
structural issues in the long term will persist.

Balanced budgetary performance has allowed Alagoas to maintain
sufficient liquidity. S&P said, "We estimate its free cash will
cover 1.7x of its debt service in the next 12 months, which we
estimate to be about R$650 million. However, we believe liquidity
could fluctuate amid increasing pressures, infrastructure needs,
and potential environmental contingencies."

S&P said, "We consider access to external liquidity as limited
because in order to issue debt under Brazil's intergovernmental
framework, the states must receive authorization from the federal
government under certain specific rules and in compliance with
fiscal targets. In addition, the states can't maintain open
contingent credit lines from banks. We assume, given that Alagoas
has the possibility to borrow with guarantee from the federal
government, the state will finance its capital spending in the next
three years with new and existing loans from public banks and
multilateral lending institutions, funds from the federal
government, and its own revenue."

Alagoas also plans to increase its investments through Casal -- the
government-owned, self-supporting water and sanitation utility --
to expand these services in the state. The company currently has
three public-private partnerships (PPP) for the provision of water,
and plans to establish more PPP projects in the future. These PPPs
are guaranteed by Casal's future receivables and by funds from
Alagoas Ativos, a state entity created to hold public assets and
manage PPP projects and concessions.

S&P said, "Therefore, we expect the state's debt to decline in
relative terms, because borrowings to finance capex aren't likely
to offset an expected strengthening in revenue collection, stemming
from the administration's efforts and economic recovery. As a
result, our base-case scenario assumes that debt will decline to
89% of consolidated operating revenue by 2021 from 104% at the end
of 2018."

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

  Ratings List

  Ratings Affirmed

  Alagoas (State of)

  Issuer Credit Rating
   Global Scale              BB-/Stable/--
   Brazil National Scale     brAA+/Stable/--



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C O S T A   R I C A
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COSTA RICA: S&P Assigns 'B+' Rating on New US$1.5BB Unsec. Notes
----------------------------------------------------------------
S&P Global Ratings assigned a 'B+' rating on Costa Rica's
prospective reopening of its 7.158% notes due 2045 and a 'B+'
rating on its planned issuance of notes due 2031. The expected
combined amount of the reopening and new notes is US$1.5
billion--in line with authorization from Costa Rica's Congress to
issue up to this amount in Eurobonds to cover the government's 2019
financing needs.

In addition to tapping the local market, Congress authorized
borrowing of US$500 million from Corporacion Andina de Fomento and
US$350 million from the Inter-American Development Bank.

S&P said, "Our 'B+/B' sovereign issuer credit ratings reflect both
progress and challenges for the administration of President Carlos
Alvarado in executing the fiscal reform passed last year after many
years of debate, including various changes in the cabinet, most
recently in the ministry of finance. After former Minister of
Finance Ana Rocio Aguilar resigned in October, President Alvarado
named long-time World Bank economist Rodrigo Chaves the new finance
minister, to assume office at the end of November.

"We expect Costa Rica's real GDP to grow around 2%-2.5% this year
and next. High general government deficits and debt burden, coupled
with external vulnerabilities, weigh on Costa Rica's credit
profile. A high level of dollarization constrains monetary policy
flexibility.

"The negative outlook on our long-term ratings on Costa Rica
reflects an at least one-in-three chance of downgrade amid
greater-than-expected erosion of the government's debt burden or
signs of weakening access to liquidity due to external shocks or
poor debt management. Failure to effectively implement the tax
reform that went into effect this year, and additional fiscal
spending measures if needed, could result in a continuous increase
in the net general government debt burden, contributing to higher
interest expenses. That, combined with rigidities in debt
management and an already high level of sovereign debt denominated
in foreign currency, could raise the sovereign's vulnerability to
external and other shocks, leading to a downgrade.

"We could revise the outlook to stable if the government is able to
reduce its fiscal deficit sufficiently to gradually stabilize its
debt burden, contain interest costs, and undertake more effective
debt management to reduce its exposure to potential adverse
movements in interest rates and the exchange rate. Such steps,
along with continued economic growth, could boost investor
confidence, sustain foreign direct investment, and reduce the
country's external vulnerability."

  Ratings List

  Costa Rica

  Sovereign Credit Rating     B+/Negative/B

  New Rating
  Costa Rica

  Senior Unsecured
    Notes due 2045      B+
    Notes due 2031      B+



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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: Easier Trade, Lower Costs Must Be Priorities
----------------------------------------------------------------
Dominican Today reports that positioning the Dominican Republic as
a nearshore production platform, integrated into the North American
supply chain, is one of the challenges that the American Chamber of
Commerce of the Dominican Republic (AmchamDR) pursues for its 96th
anniversary.

Chamber executive vice president, William Malamud, made the
statement to mark the entity's 96th anniversary, according to
Dominican Today.

The business leader stressed most relevant transformations that the
country has faced in terms of trade, investment and legal
certainty, the report notes.

"Trade facilitation must be a national priority.  For this, we
understand that it is necessary to lower costs, time and simplify
business operations.  As a country, we have an excellent
opportunity to improve our foreign trade if we take advantage of
our geographical proximity to the United States," he added.

                     About Dominican Republic

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

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

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

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

DOMINICAN REPUBLIC: Guatemala to Use Ports; Discloses US$2BB JV
---------------------------------------------------------------
Dominican Today reports that Dominican Republic will be the hub for
products from Guatemala bound to Europe, that country's ambassador
Rudy Coxaj announced recently.

The diplomat said local ports will be used for perishables that go
to Europe, in which 100 tons of air cargo and 24 containers of sea
cargo will mobilize 18 varieties of fruits and vegetables every
month, according to Dominican Today.

He said the initiative will spur other nations of the region to use
Dominican Republic to transport their products, the report notes.

"Only the approval of the phytosanitary protocol by the Ministry of
Agriculture is still pending," Coxaj told El Dia, the report
relays.

                          Potential for Hub

The diplomat stressed that the entry of Guatemalan products into
the country will generate new jobs and allow entrepreneurs to
reduce transportation costs and reduce the delivery time of fruits
and vegetables they export from Guatemala to European countries,
the report discloses.

"This country has the necessary infrastructure to become the hub of
the Caribbean and also allows deliveries to our partners to be
efficient," Coxaj said, the report relays.

He said they were previously transporting the products to Miami,
but market saturation intensified costs and agricultural products
were perishing, the report notes.  "The protocol to use the
country's ports was submitted for consideration five months ago and
it's already in the last stage of approval," he added.

                                Tourism

The diplomat predicts that a Dominican-Guatemalan alliance to
invest in the latter's tourism sector will draw as much as US$2.0
billion in the heart of Guatemala's Mayan World, where 5,000 rooms
are planned to be built in the first phase, the report relays.  "Of
this investment 30% is Dominican and 70% Guatemalan," he added.

                     About Dominican Republic

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

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

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

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



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J A M A I C A
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JAMAICA: Auto Dealers Predict Fall in Car Prices
------------------------------------------------
RJR News reports that auto dealers are predicting a fall in car
prices with the new age limit for the importation of vehicles to
Jamaica.

The Trade Board disclosed the limit has increased from five to six
years, according to RJR News.

Lynvale Hamilton, President of the Jamaica Used Car Dealers
Association, said car buyers will benefit as more low cost vehicles
will be available, the report notes.

Effective January 1, dealers and individuals will still be able to
import 2014 sedans and station wagons, the report notes.

The report discloses that the limit for small trucks, panel vans
and window vans has increased from six to 10 years.

                           About Jamaica

As reported in the Troubled Company Reporter-Latin America on Oct.
1, 2019,  S&P Global Ratings, on Sept. 27, 2019, raised its
long-term foreign and local currency sovereign credit ratings on
Jamaica to 'B+' from 'B'. The outlook is stable. At the same time,
S&P Global Ratings affirmed its 'B' short-term foreign and local
currency sovereign credit ratings on the country. S&P Global
Ratings also raised its transfer and convertibility assessment to
'BB-' from 'B+'.

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

JAMAICA: Tobacco Industry Regulations Act to be Repealed
--------------------------------------------------------
RJR News reports that the Jamaican cabinet has given approval for
the Tobacco Industry Regulations Act to be repealed.

Information Minister Karl Samuda said the decision follows the
closure of the Tobacco Industry Control Authority, which was
established by the Act, according to RJR News.

This is in keeping with the recommendations of the Public Sector
Transformation Unit, the report relays.

Samuda, who was speaking at the post-Cabinet media briefing, noted
that Jamaica, which ratified the World Health Organization
Framework of Cooperation on Tobacco Control in 1983, has been party
to the WHO's Framework Convention on Tobacco since July 2005, the
report notes.

With the repeal of  the Act, Jamaica will be one step closer to
full compliance with the obligations under the Convention, the
report adds.

                           About Jamaica

As reported in the Troubled Company Reporter-Latin America on Oct.
1, 2019,  S&P Global Ratings, on Sept. 27, 2019, raised its
long-term foreign and local currency sovereign credit ratings on
Jamaica to 'B+' from 'B'. The outlook is stable. At the same time,
S&P Global Ratings affirmed its 'B' short-term foreign and local
currency sovereign credit ratings on the country. S&P Global
Ratings also raised its transfer and convertibility assessment to
'BB-' from 'B+'.

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



=======
P E R U
=======

PERU: Looking to Diversify Exports to China, Minister Says
----------------------------------------------------------
Expanding the range of exports to include value-added products is
the main challenge and the priority for Peru in its foreign trade,
Edgar Vasquez, the minister of foreign trade in the Latin American
country, told EFE during a China visit.

"The challenge for Peru is diversifying our export basket in China,
which (currently) mainly consists of minerals and fish meal," said
the minister, who is in Shanghai to take part in the China
International Import Expo, where Peru figures as one of the guest
countries, according to EFE News.

EFE News reports that Vasquez said although the export of
value-added products had grown in recent years, it was still far
from sufficient and the Andean country had a "great manufacturing
potential" in chemicals and machinery, in which Lima would
"concentrate its efforts in the next few years".

According to the Peruvian ministry of foreign trade and tourism,
the bilateral trade between China and Peru tripled in the last 10
years, reaching a record of $23.27 billion in 2018, a 14 percent
growth year-on-year, the report notes.

Around 81.7 percent of the total Peruvian exports to China is made
up of just two products: copper and fish meal, which explains
Lima's focus on selling different products to the Asian giant, the
largest trading partner of Peru since 2014, the report relays.

Vasquez is heading a trade delegation to China which includes
representatives of 16 companies that are trying to enter or
consolidate in the Chinese market through the CIIE -- the pet
project of Chinese President Xi Jinping for opening the local
markets to the world, the report discloses.

The event kicked off on Nov. 12 and is set to last until Nov. 17.

"China is the world's biggest market, and the (Chinese)
government's attempt to boost domestic demand would generate
multiple windows of opportunity for Peru," the minister said, the
report relays.

According to Vasquez, the Latin American country being invited as a
guest of honor at CIII is an "example of great ties" as the two
sides have signed a free trade agreement for various products, the
report notes.

He also stressed that "nearly 10 percent of the Peruvian population
has Chinese origins," the report says.

Peru is one of the participants in China's infrastructure
mega-project Belt and Road Initiative, the report discloses.

The minister said the BRI collaboration was actively on display in
projects such as the agreement between Chinese state-owned Cosco
Shipping Ports and Peruvian mining firm Volcan for establishing the
multipurpose port terminal in the city of Chancay, which aims to
convert Peru into a major port-logistics center, the report says.

"Connectivity is one of our main reasons for participating in the
BRI. We consider it important to expand cooperation and stronger
ties, especially in connectivity and logistics," Vasquez
emphasized, the report adds.




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

PETROLEOS DE VENEZUELA: Discloses Joint Venture with Chevron
------------------------------------------------------------
Deisy Buitrago, Mircely Guanipa and Luc Cohen at Reuters report
that Venezuelan state oil company Petroleos de Venezuela, S.A.
(PDVSA) and Chevron Corp plan to turn their joint venture Petropiar
plant back into a crude upgrader, after months operating as a less
complex blending facility, three people familiar with the operation
said.

The companies plan to begin producing Hamaca-grade synthetic crude
for export at the plant early next year, said the people, who spoke
on condition of anonymity, according to Reuters.  Petropiar stopped
producing Hamaca earlier this year and has been making heavier
Merey crude, mostly for the Asian market, since July, the report
notes.

Petropiar once made up to 210,000 barrels-per-day (bpd) of Hamaca
out of tar-like oil from the OPEC nation's Orinoco belt, one of the
world's largest oil reserves, the report discloses.  The
extra-heavy crude needs to be either upgraded or blended with
lighter grades at facilities near the Jose terminal before being
exported, the report relays.

But Petroleos de Venezuela, S.A., known as PDVSA, struggled to find
markets for that grade after the United States, previously
Venezuela's largest customer, slapped sanctions on the company in
January in an effort to oust socialist President Nicolas Maduro,
who has overseen a dramatic economic collapse and a freefall in
crude output, the report notes.

It was not immediately clear if PDVSA had a client lined up for the
Hamaca crude.

PDVSA, which owns 70% of the joint venture and operates it, did not
respond to a request for comment. Chevron deferred comment to
Petropiar.

The Treasury Department last month renewed Chevron's license to
continue operating Petropiar and its three other joint ventures
with PDVSA despite the sanctions through January, the second such
extension this year, the report notes.  The license had previously
been set to expire on Oct. 25, the report says.

PDVSA said in July it expected Petropiar to produce some 130,000
bpd of Merey, but in September, it was forced to suspend blending
due to high crude inventories, as sanctions left the company with
few willing buyers, the report relays.  It restarted operations in
October and was producing around 100,000 bpd of Merey, the report
discloses.

Exports surpassed 800,000 bpd for the second month in a row in
October, helping to drain the inventory buildup, the report adds.

                            About PDVSA

Founded in 1976, Petroleos de Venezuela, S.A. (PDVSA) is the
Venezuelan state-owned oil and natural gas company, which engages
in exploration, production, refining and exporting oil as well as
exploration and production of natural gas.  It employs around
70,000 people and reported $48 billion in revenues in 2016.

As reported in Troubled Company Reporter-Latin America on June 3,
2019, Moody's Investors Service withdrew all the ratings of
Petroleos de Venezuela, S.A. including the senior unsecured and
senior secured ratings due to insufficient information. At the
time
of withdrawal, the ratings were C and the outlook was stable.

Citgo Petroleum Corporation (CITGO) is Venezuela's main foreign
asset.  CITGO is majority-owned by PDVSA.  CITGO is a United
States-based refiner, transporter and marketer of transportation
fuels, lubricants, petrochemicals and other industrial products.

However, CITGO formally cut ties with PDVSA at about February 2019
after U.S. sanctions were imposed on PDVSA.  The sanctions are
designed to curb oil revenues to the administration of President
Nicolas Maduro and support for the Juan Guaido-headed party.

VENEZUELA: EU Extends Sanctions for a Year
------------------------------------------
Associated Press reports that the European Union is extending
sanctions against Venezuela for a year due to the political and
economic crisis that it blames on the government of President
Nicolas Maduro.

EU foreign ministers decided at a meeting to prolong an arms
embargo and ban on equipment sales that could be used against
demonstrators until Nov. 14, 2020, according to Associated Press.

They also extended an asset freeze and travel bans against 25
Venezuelan officials, the report notes.

The EU says it's targeting the Maduro regime over "persistent
actions undermining democracy, the rule of law and the respect for
human rights," the report relays.

The ministers said the sanctions "are flexible and reversible" and
do not target ordinary Venezuelans, the report notes.

The U.S., EU and many other governments recognize opposition leader
Juan Guaido as Venezuela's interim president, the report relays.
They say Maduro wasn't legitimately re-elected last year, the
report adds.

               About Venezuela

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

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

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

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

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

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

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


                           *********


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

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

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

This material is copyrighted and any commercial use, resale or
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of the same firm for the term of the initial subscription or
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