TCRLA_Public/191114.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, November 14, 2019, Vol. 20, No. 228



PAN AMERICAN: Fitch Rates Proposed $75MM Unsec. Notes 'BB-'
PAN AMERICAN: Moody's Rates New Unsec. Notes Due 2023 'B2'


JBS SA: BNDES Hiring Banks to Sell At least $1.2 Billion in Shares


WOM MOBILE: Fitch Assigns BB- LongTerm FC IDR, Outlook Stable
WOM SA: Moody's Assigns 'B1' Corp. Family Rating, Outlook Stable
WOM SA: S&P Assigns 'B+' Preliminary Issuer Credit Rating

D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Stock Market Continues Taking Firm Steps
DOMINICAN REPUBLIC: Tourist Arrivals Fall 3.8% in First 10 Months


JAMAICA: BOJ Injects Funds Into Foreign Exchange Market


CEMEX SAB: S&P Rates New $1BB Senior Secured Notes Due 2029 'BB'
GRUPO GICSA: S&P Alters Outlook to Negative & Affirms 'BB' ICR


PARAGUAY: 2019 Growth Expected to be Near Zero, IMF Says

P U E R T O   R I C O

ALICES SCHOOL: Seeks to Hire Moreno & Soltero as Legal Counsel
COPY DU SERVICES: Hires Pablo E. Garcia Perez as Attorney
PUERTO RICO: Gets Near-Failing Grade on Infrastructure Report Card

                           - - - - -


PAN AMERICAN: Fitch Rates Proposed $75MM Unsec. Notes 'BB-'
Fitch Ratings assigned a long-term rating of 'BB-'/'RR3' to Pan
American Energy L.L.C., Sucursal Argentina's proposed unsecured
issuance of up to USD75 million, which can be increased to USD120
million. The notes are guaranteed by Pan American Energy S.L. Fitch
currently rates Pan American Enersgy's Long-Term Foreign Currency
Issuer Default Rating 'B+' and Long-Term Local Currency IDR 'BB'.
The Rating Outlook for the Foreign Currency IDR is Positive. The
Rating Outlook for the Local Currency IDR remains Stable.

PAE's strong business position, large reserves base, low leverage
and strong operating performance support its ratings. The Foreign
Currency IDR, four-notches higher than Argentina's country ceiling,
is supported by the company's cash flows from its Bolivian
operations and its strong liquidity profile that adequately covers
the next 24 months of debt service, and its strong supporting
foreign parent, BP (A/Stable) and BC Energy Investments Corp
(formerly known as Bridas Corp), both with 50% stake in the
company. BC Energy Investments Corp is 50% owned by CNOOC
International Ltd (A+/Stable). Further, PAE has multinational
operations and reliable strong cash flow generation with a high
level of dollar-denominated export revenues relative to total debt,
strong parent ownership, and a good track record of payment during
stressed sovereign scenarios. PAE has ample liquidity and proven
access to financial markets. PAE's ratings continued to be
constrained by the country ceiling of Argentina (CCC) as EBITDA
from its non-Argentina business is just shy of covering
consolidated gross interest expense for the company.

The Positive Outlook reflects Fitch's expectation that PAE's
Mexican operations will commence in second-half 2020, and the cash
flows from Mexico and Bolivia in 2020 will adequately cover 12
months gross interest expense for the entire company. Per Fitch's
Non-Financial Corporates Exceeding the Country Ceiling Rating
Criteria, the country ceiling of Bolivia (BB-) would apply, as
Fitch does not expect cash flows from Mexico will adequately cover
interest expense in 2020 but may thereafter.

The 'BB-'/'RR3' ratings on the USD500 million senior unsecured
notes due in 2021 are one notch above PAE's Foreign Currency IDR
and reflect expected above-average recovery for creditors, given a
default. Although a bespoke recovery analysis yields a higher than
70% recovery, given a default, Fitch's Country-Specific Treatment
of Recovery Ratings Criteria allows for a one notch uplift for
recovery whenever there is a two-notch rating differential between
a company's Foreign Currency and Local Currency ratings. In
instances when the difference between the Foreign Currency and
Local Currency rating is one notch, or less, Argentine corporates
would be capped at an average Recovery Rating (RR) of 'RR4', which
is in the range of 31% to 50%.


Diversified Geographic Footprint: The Positive Outlook reflects
Fitch's expectation that PAE's Mexican asset, Hokchi, will commence
operations in 2020. In that case, Fitch estimates the company will
generate enough cash flow outside of Argentina from both its
Mexican and Bolivia operations to apply a higher country ceiling.
Fitch estimates the EBITDA of both Mexico and Bolivia will
adequately cover one full year of the company's consolidated
hard-currency (HC) interest expense, all things being equal.
Therefore, the company's Foreign Currency IDR will not be limited
by the country ceiling of Argentina and the country ceiling of
Bolivia (BB-) will apply.

Stable Production Profile: Under Fitch's base case, PAE is expected
to increase daily average production to above 250,000boe/d by 2020
when its Hokchi asset commences operations in 2020. In 2018, the
company's production remained flat at 225,000boe/d when compared
with 2017 and 6% below its production in 2016. The decrease in
production was mainly due to lower demand of gas from Argentina and
Brazil, which affected Bolivia's volumes delivered to those
markets. Fitch believes the company has extraordinary flexibility
given its significantly strong reserve base, allowing it to adjust
accordingly to assure profitability.

Strong Hydrocarbon Reserves: Fitch believes PAE has a strong
reserve life of 18.0 years, providing ample flexibility to adjust
capex investment. As of YE 2018, PAE reported 1,590 million of boe
in 1P reserves, 64% of which is oil. Fitch estimates PAE has an oil
1P reserve life of 26 years and gas 1P reserve life of 11 years.
PAE's strong reserve base is supported by a strong concession life.
The company's Golfo San Jorge basin, Cerro Dragon, accounted for
89% of its total oil production, 24% of gas production and 71% of
reserves. Operating concessions expire in 2046-2047, and the
company's Hokchi asset has a concession life of 25 years.

Flexible Business Model: Fitch believes PAE's integrated energy
model in Argentina gives the company greater flexibility to
optimize profitability. After the integration of PAE and Axion
Energy, the company formulated the largest private integrated
energy company in Argentina. PAE's upstream business is the largest
private Oil & Gas company in Argentina, and the largest private
entity with 20% market share in oil production and 16% in gas
production in Argentina. In 2018, Axion was the third largest
refiner in Argentina with a 15% market share with 95 thousand
barrels a day of refining capacity located in Campana. The refinery
in Campana is completing a major expansion and upgrade that will
increase the refining capacity and improve the production of more
higher-value products, such as ultra-low sulfur diesel, which is
currently imported. The facility will be the only facility in
Argentina that can process PAE's heavy crude production, which it
generally exported. Upon the completion of the expansion, PAE will
have greater flexibility to meet domestic demand of diesel product,
with the ability to adjust its operations in line with domestic and
international demand.

Solid Leverage Metrics: PAE's capital structure remains strong,
even after the integration of Axion Energy, when it absorbed USD740
million of additional debt. Fitch estimated the company's gross
leverage, defined as total debt to EBITDA in 2018 was 1.2x, and the
company had a total debt to 1P of reserves of USD1.59 per barrel of
equivalent. Fitch estimates the company's gross leverage will
average 1.7x between 2019-2020 mostly explained by the company
modestly increasing indebtedness to execute on its expansion plans
and refinance current debt. Fitch believes the company has strong
and competitive access to capital and will likely refinance its
debt at competitive rates, especially after its Mexican assets are
in full operation.

Uncertain Operating Environment: The uncertain economic and
political environment in Argentina exposes PAE to greater
government intervention. Fitch believes PAE is a key participant in
the energy market in Argentina, being the largest private supplier
of oil and natural gas in Argentina. Fitch expects that further
disruption to the sector is possible and PAE's operations may be
materially affected, especially as the government is vulnerable to
further collapses in market sentiment, sharp depreciation of the
Argentine peso, high inflation and widening debt spreads, there is
a chance that the government will introduce further stabilization
measures that will adversely affect PAE. Fitch believes the capital
controls can adversely affect PAE, as it is required to repatriate
its exports revenues within 30 days, but this risk is now offset by
its non-argentine operations.

Strong Ownership: PAE is a 50/50 strategic alliance between BP plc
(A/Stable) and BC Energy Investments Corp. (BC) formerly known as
Bridas Corporation. BC is also a 50/50 joint venture between
Argentine Bridas Energy Holdings and China National Offshore Oil
Corporation International Ltd, a wholly owned subsidiary of CNOOC
Limited (CNOOC; Long-Term IDR A+/Stable). Prior to the merger,
Bridas owned 100% of Axion Energy. PAE's strong ownership does not
have direct impact on its credit rating, but given both companies'
strong track records and scale, Fitch expects its shareholders
would support the company if needed.


PAE's Foreign Currency IDR continues to be constrained by the
Argentine Country Ceiling at 'CCC'; however, its medium production
size of 226,000 of boed and strong reserve life of 18 years
compares favorably with other 'BB' rated oil and gas E&P producers.
These peers include Tecpetrol Internacional (BB+/Stable) with
production of 180,000 of boed, Murphy Oil Corporation (BB+/Stable)
with 171,000 of boed and YPF SA (CCC) with 475,000 of boed.
Further, PAE reported 1,590 million boe of 1P reserves at the end
of 2018 equating to a reserve life of 18 years, higher than Murphy
Oil's at 13.9 years and Tecpetrol's with 10.2 years. Fitch expects
the company will be able to maintain its strong reserve life.

PAE's capital structure remained strong in year-end 2018. As of LTM
2Q19, the company's gross leverage measured by total debt to LTM
EBITDA is 1.3x, slightly up from 1.2x in year-end 2018 due to the
acquisition of Axion Energy. In line with Tecpetrol (1.1x) and
slightly better than Murphy Oil (2.1x) and YPF (1.9x). On debt to
1P reserve basis, Fitch estimates PAE's debt as of 2018 to 1P
reserves as USD1.59 boe compared with Tecpetrol (USD1.66boe),
Murphy Oil (USD4.47boe) and YPF (USD8.90boe). PAE operates in a
lower operating environment, which is a constraining factor for its
ratings, but receives a one-notch uplift from the country ceiling
due to its cash flows from export revenues and cash flows from


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

  -- Average gross production of 230,000-290,000 boe/d from

  -- Mexican operations commence second-half 2020;

  -- An average Refinery utilization capacity rate of 85% in 2019
through 2021;

  -- Improved refinery production capacity at the Campana project
with expansion project completed in 2019;

  -- Fitch's Brent oil price assumptions of USD65 per barrel (bbl)
for 2019, USD62.50/bbl for 2020, USD60/bbl for 2021 and
USD57.50bbl for the long term;

  -- EBITDA margins expected to remain at an average of 30%-40%
from 2019-2022;

  -- Annual capex averaging of USD1.5 billion per year from

  -- Dividends to average of UD146 million per year from 2019
through 2022;

  -- Gross leverage metrics average 1.4x from 2019-2022.


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

  -- Cash flow from operations outside of Argentina (Bolivia and
Mexico) adequately covering hard currency gross interest expense
for 12 months, resulting in a higher applied country ceiling than

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

  -- PAE's ratings could be negatively affected by a deterioration
of Argentina's credit quality combined with a material increase in
the government's interference in the sector;

  -- An increase in leverage above 3.5x coupled with a decrease in
interest coverage below 4.5x could also negatively affect ratings.


Strong Liquidity: Fitch estimates PAE's cash flow and liquidity
position comfortably cover the next 24 months of debt service. PAE
recently issued an ARS7.2 billion (USD117 million) local floating
rate note to partially refinance the USD411 million of debt
maturing in November 2020. Fitch estimates that PAE can comfortably
service debt with cash on hand and cash flows through the rating
horizon in the event the company faces a challenging financing
environment due to the Argentina. That being said, PAE has a strong
and conservative track record of tapping local and international
markets and accessing capital at competitive rates.

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


Fitch has assigned the following ratings:

Pan American Energy LLC Sucursal Argentina

  -- Proposed Senior unsecured notes 'BB-'/'RR3'.

Fitch Currently Rates Pan American Energy S.L. as Follows:

  -- Long-Term Foreign Currency IDR at 'B+'; Outlook Positive;

  -- Long-Term Local Currency IDR at 'BB'; Outlook Stable.

PAN AMERICAN: Moody's Rates New Unsec. Notes Due 2023 'B2'
Moody's Investors Service assigned a rating of B2 to the proposed
backed senior unsecured notes for up to $120 million due 2023 to be
issued by Pan American Energy, S.L., Argentine Branch, a
wholly-owned subsidiary of Pan American Energy, S.L. (B2 RUR-). The
notes are guaranteed by PAE and rank pari passu with PAE Argentine
Branch's and PAE's other present and future unsecured and
unsubordinated debt obligations. The rating is under review for

Net proceeds from the proposed issuance will be used for liability
management, capital spending and working capital requirements.

The rating of the proposed notes assumes that the final transaction
documents will not be materially different from draft legal
documentation reviewed by Moody's to date and assume that these
agreements are legally valid, binding and enforceable.


The B2 rating for PAE Argentine Branch proposed backed senior
unsecured notes mirrors the rating of its parent company and
guarantor, PAE (B2 RUR-), who fully and unconditionally guarantees
the instruments. The rating of the proposed notes is under review
for downgrade reflecting the rating under review of its guarantor,

PAE's B2 rating reflects its status as Argentina's (Government of
Argentina, Caa2 RUR-) second-largest integrated oil and gas
producer and the largest exporter of crude oil in the country, with
a strong local market position and track-record of consistently
sound financial and operating performance relative to peers. The
rating also reflects its healthy foreign-currency liquidity and
sizable exports. PAE also has exploration, development and
production interests in Bolivia (Government of Bolivia, Ba3 stable)
and Mexico (Government of Mexico, A3 negative). In addition, the
company has strong sponsors, which provide certain operational
advantages in terms of technical knowledge, administrative
practices and corporate governance policies. PAE is 50% owned by BP
p.l.c. (A1 stable) and 50% owned by BC Energy Investments Corp.
("BC"). BC is a privately-owned oil and gas company that is 50%
owned by Bridas Energy Holdings Ltd. and 50% by CNOOC Limited (A1
stable). PAE also guarantees PAE Argentine Branch's $333 million
outstanding 2021 senior unsecured notes.

PAE's rating is constrained by its geographic concentration of
reserves and production in Argentina and its dependence on a single
refinery, as well as its exposure to economic instability and
political risks in Argentina, which could limit PAE's ability to
economically exploit its reserves and book additional proven

In its last rating action dated September 3, 2019, Moody's
downgraded PAE's and PAE Argentine Branch's ratings to B2 from Ba3
and placed them under review for downgrade. The action followed the
downgrade of the Government of Argentina's rating to Caa2 from B2
and placement of Argentina's rating under review for downgrade on
August 30, 2019. The rating action reflected its view that a weaker
sovereign has the potential to strain the ratings of companies
operating within its borders, and therefore it is appropriate to
limit the extent to which the companies can be rated higher than
the sovereign, in line with its cross-sector rating methodology,
Assessing the Impact of Sovereign Credit Quality on Other Ratings,
published in June 2019. The review for downgrade of PAE's and PAE
Argentine Branch's ratings reflect the review for downgrade of the
Caa2 Government of Argentine bond rating.

Although Moody's expects some deterioration in PAE's credit metrics
in the next 12-18 months because of its high exposure to
Argentina's weak economic environment, they will remain strong and
well above that of its peers at the B rating category. For the next
12-18 months Moody's expects adjusted Retained Cash flow to net
debt ratio at around 60% and adjusted debt to Ebitda ratio at
around 1.7x, vs 89% and 1.5x times, respectively, as of the last
twelve months ended in June 2019; interest coverage as measured by
Ebit to interest expense will remain at around 5.4x, slightly below
the 5.8x as of June 2019. Also, because proceeds from the proposed
notes issuance will aid the company's liability management, the
issuance will improve the company's liquidity profile, which
Moody's already considers as good, with cash holdings representing
127% of short-term debt plus a significant amount of unused
uncommitted facilities capacity. Moreover, Moody's believes PAE may
adjust its investments to protect its liquidity, in case of need.

PAE owns PAE Argentine branch, which accounts for 70% of its total
production and 80% of proved reserves. In 2018, approximately 95%
of oil production and 79% of gas production were derived from
operations in Argentina, with the balance originating in Bolivia.
Production in Mexico's block is expected to start operations in
2020 and will bring additional geographic diversification to its
production base. It's important to note that despite the company's
concentration of production and reserves in Argentina, PAE
Argentine Branch operations present certain key counterbalancing
factors that will support profitability despite the weak local
operating environment. In this sense, PAE Argentine Branch
typically processes around 60% of crude production in its Campana
refinery, but the remaining 40% is exported. Also, starting 2019
the company exports natural gas to Chile, which represented 10% of
natural gas production in the first six months of 2019. Although
PAE Argentine Branch sells to the domestic market close to 90% of
the 95 thousand barrels per day (mbbl/d) of refined products it
produces, close to half of this amount is sold in the wholesale and
other segments that are priced in dollars or linked to the US
dollar exchange rate, and the remaining 10% is exported.

PAE's oil and gas production was at 222 thousand barrels of oil
equivalent per day (boe/d) for the last twelve months ended in June
2019 (note: natural gas figures include Moody's conversion rate of
6,000 million cubic feet = 1 boe, which differs from the
company's), out of which 51% was crude oil and 49% was natural gas.
As of December 2018, PAE reported proved reserves of 1,571 million
boe, equivalent to an 18-year reserve life.

An upgrade of the proposed notes B2 rating is unlikely at this
point because the ratings are under review for downgrade. The
proposed notes' rating could be confirmed/downgraded if PAE's
ratings were to be confirmed/downgraded.

PAE is a privately-owned energy company mainly involved in the
exploitation of oil and natural gas reserves in Argentina, Bolivia
and Mexico. PAE is Argentina's second-largest oil and gas company
by volume, accounting for about 17% of the oil and gas market, and
it is the country's largest exporter of crude oil. Additionally,
starting April 2018, PAE incorporated downstream operations through
its integration with Axion, becoming the largest privately-owned
integrated energy company operating in Argentina. Its refinery can
process up to 95 mbbl/d, representing close to 14% of Argentina's
total installed crude oil refining capacity as of June 2019. PAE
complies with the most stringent international standards for both
upstream and downstream operations.

The principal methodology used in this rating was Integrated Oil
and Gas Methodology published in September 2019.


JBS SA: BNDES Hiring Banks to Sell At least $1.2 Billion in Shares
Tatiana Bautzer and Carolina Mandl at Reuters report that Brazilian
development bank BNDES has asked banks for proposals to sell a
stake worth BRL5 billion (US$1.2 billion) in meatpacker JBS SA,
sources with knowledge of the matter said.

The proposals are expected to be delivered in the coming days,
according to three sources, and are the first step for hiring the
banks to manage the offering, according to Reuters.

The development bank's investment arm BNDESPar has a 21.3% stake in
the company, but has asked this week for proposals to sell only
part of its stake, the sources added, asking for anonymity to
disclose non-public information, the report notes.

The shareholders agreement in the company requires BNDESPar to keep
its stake at no less than 15% if it wants a seat on the board and a
veto on some issues, according to public documents, the report

To comply with this rule, BNDESPar could only sell 6.3% of the
company, around 172 million shares, worth around BRL5 billion
(US$1.2 billion) according to the market prices, the report says.

But it is unclear if BNDESPar would sell only this portion of the
stake or if it could raise the total amount, the sources added.
Banks will advise BNDES on the best timing for the offering, the
report notes.

The shareholders agreement will expire on Dec. 31 and is not
expected to be renewed, according to a fourth source with knowledge
of the matter, the report relays.

If the chosen bank considers the best timing for a sale is next
year, a bigger stake could be sold after Dec. 31, according to the
sources, Reuters notes.

BNDES and JBS did not immediately comment.

BNDES is expected to divest most of its BRL110 billion (US$29
billion) stock portfolio, as President Jair Bolsonaro's government
tries to reduce the presence of Brazilian state in the economy and
undo previous policies of the government financing international
expansion of Brazilian companies, the report discloses.

BNDES' total stake in JBS is worth around BRL16 billion and its
sale would mark one of the first divestitures by the development
bank in the so-called "national champions" companiesm the report

As reported in the Troubled Company Reporter-Latin America on Nov.
1, 2019, S&P Global Ratings raised its long-term issuer credit
ratings on Brazil-based protein processor JBS S.A. (JBS) and JBS
USA Lux S.A. to 'BB' from 'BB-'.


WOM MOBILE: Fitch Assigns BB- LongTerm FC IDR, Outlook Stable
Fitch Ratings assigned 'BB-' first-time ratings to WOM Mobile S.A.,
the holding company for WOM S.A. including its Long Term Foreign
Currency Issuer Default Rating, and its LT Local Currency IDR. The
Rating Outlook is Stable. Fitch has also assigned 'BB-' ratings to
the proposed debt instruments in WOM's corporate structure,
including the CLP denominated credit facilities and the USD
denominated notes.

The ratings reflect Fitch's expectation that WOM will continue to
grow robustly and profitably. The company's competitive position
has improved dramatically since Novator purchased and rebranded
Nextel Chile SA's assets in 2015, with mobile market share
improving from 2% to 18%. Fitch expects the company to deleverage
after the transaction, as revenue expansion and cost efficiencies
enable the company to reach Net Debt / EBITDA of around 3.3x by

WOM S.A., the operating company for the group, will receive a
five-year CLP term loan for the equivalent of USD150 million
(CLP117 billion) and enter into a two-year CLP RCF for the
equivalent of USD50 million (CLP39 billion). Kenbourne Invest S.A.,
an SPV, will issue five-year USD notes for USD450 million (CLP351
billion). WOM S.A. and WOM Mobile S.A. will guarantee the SPV debt.
Fitch expects that the proceeds from the transaction (USD600
million) will be used to refinance the group's existing debts of
approximately USD330 million (primarily bank loans from the China
Development Bank), with the remainder distributed as dividends to
shareholder Novator Partners LLP.


Leveraging Transaction, Organic Deleveraging Expected: WOM's net
debt to EBITDA ratio should increase to around 4.8x from 2.5x, on a
LTM pro forma basis of the transaction, excluding IFRS16. Fitch
forecasts the company's FCF, which turned positive in 2019, will
continue to grow, allowing the company to deleverage organically
and quickly. Longer term, this net leverage ratio should remain
3.0x-3.5x, as the company's capital expenditures decline modestly
and its profitability improves in line with its increased scale.
WOM is expected to maintain average cash balances over the medium
term of CLP20 billion-CLP25 billion, with excess cash distributed
to shareholder Novator Partners LLP.

Expanding Margins, Increasing Cash Flows: The company has
demonstrated a clear path to profitability YTD2019, as cost
efficiencies and rapid revenue growth have resulted in
Fitch-adjusted Operating EBITDA margins improving from negative 40%
in 2016 to 21% in 2019 (ex-IFRS16). Fitch expects EBITDA margin
expansion to above 25% longer term, in line with Chilean mobile
peers. Fitch expects the company to use its tax assets to minimize
cash tax payments, which should help boost profitability and cash
flows. Declining capital intensity should further support the
company's pre-dividend FCF growth.

Rapid Growth: Since WOM launched in mid-2015, the company has
scaled rapidly, achieving approximately 5.8 million customers, of
which almost half are post-paid. The company has taken market share
from larger incumbents through its disruptive marketing campaign,
based on brand recognition, gigabyte per CLP value, and retail
experience. Longer term, the company's market share is expected to
grow from 18% to approximately 26% by YE2023. Fitch expects slower
but more profitable growth going forward as the company nears its
market share targets.

Credible Management, Track Record: WOM has a credible deleveraging
trajectory, backed by its strong growth and experienced management
team and shareholder. Novator has experience running
telecommunications ventures in both developed and developing
markets, and has executed its growth strategy while demonstrating a
path to profitability. Fitch views sister company P4 Sp. Z.o.o
("Play", BB/Stable), originally rated 'B+' by Fitch in 2014, as
illustrative. Play achieved rapid growth as the fourth player in
the Polish market, before achieving market leadership, while
successfully deleveraging.

Competitive Telecom Market: The Chilean telecom market remains very
competitive, as incumbent operators have had to cut prices and
improve service to defend market share, pressuring margins and cash
flows. Fitch expects mobile ARPUs to continue declining for all
players, although WOM's value proposition and lower starting point
should mitigate these concerns to a degree. The market is
relatively mature, although the ongoing migration from prepaid to
postpaid, and the attendant growth in data consumption present

Operating Environment: WOM benefits from a relatively stable
macroeconomic environment and policy framework in Chile. Fitch does
not expect the social unrest in Chile to materially impact telecom
operators. Protests have focused on industries where prices for
basic service are regulated by the government, such as transport
and utilities. The increase in competitive intensity, particularly
since WOM's entry, has led to broad reductions in price and
improvements in service for consumers. Fitch expects telecom
spending to be resilient to the cyclical variations in the
country's economy, as mobile data consumption grows exponentially.

Rating Derivation Summary

Compared with Chilean rival Telefonica Moviles Chile S.A.
(Telefonica Chile, BBB+/Stable), WOM has much higher net leverage,
as well as less scale and service diversification. While Telefonica
Chile has lost mobile market share to WOM in recent years, the
company still commands subscriber shares of around 30% in both
fixed and mobile. Compared to Chilean mobile leader Empresa
Nacional de Telecomunicaciones S.A (ENTEL, BBB-/Negative), Fitch
expects WOM to carry slightly higher net leverage as a result of
the transaction, which should decline by around 1.0x-1.5x over the
medium term.

Like WOM, ENTEL entered a new market, causing subscriber attrition
and price competition in Peru, although ENTEL has struggled to
achieve sustainable growth, which has weighed on its credit metrics
and supports an Outlook Negative. Chilean fixed line provider VTR
Finance BV (VTR, BB-/Stable) is similar to WOM in that both
companies are owned by experienced international operators and are
less diversified, focusing on fixed and mobile, respectively.

Fitch expects lower leverage at WOM than VTR in the long term,
although WOM currently lacks the scale and leading market position
of VTR. VTR is ultimately constrained by the financial policies of
Liberty Latin America (LLA/NR), which generally include net
leverage less than 4.0x. Fitch views sister company Play as
illustrative of WOM's potential. Both companies started as the #4
player in their markets, before achieving rapid growth and
deleveraging to around 3.0x-3.5x.


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

  - Revenue CAGR of 9%-10% from FY19-FY22, and revenue growth of 3%
longer term as subscriber growth decelerates and the company
achieves market share in the mid 20% range;

  - Subscriber growth decelerates to 26% in 2019, 10%-12% in 2020,
and 5%-7% in 2021, with ARPUs declining by between 3%-5% per

  - Gross margins of around 55%-60%, as service margins expand to
85%-90%, with handset margins of 3% long-term;

  - Operating expenses in the 25%-30% range, as SG&A costs scale
more slowly than revenues;

  - Cash capital expenditures of approximately CLP 70 billion, as
capital intensity declines from 14%-15% to 11% by 2022;

  - Minimal income taxes paid as the company utilizes tax-loss
carry forwards;

  - Cash balances of around CLP20-25b, with excess free cash flow
taken out through dividends;

  - USDCLP of around 720-750, with a relatively stable operating
environment in Chile.


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

  -- Deleveraging below 3.5x Net Debt / EBITDA on a sustained
basis, with consistent growth in EBITDA and pre-dividend free cash
flow supported by improved competitive position and scale.

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

  -- Excessive shareholder distributions before successfully
deleveraging would pressure the ratings;

  -- Substantial deterioration in ARPUs and/or stagnation in
competitive position, resulting in Net Debt / EBITDA sustained
above 4.0x.


WOM has adequate liquidity to continue servicing its debts and
investing in its network. As of Sept. 30, 2019, the company held
cash and equivalents of CLP24.7 billion (USD34.4 million), against
short term debt of CLP23.9 billion (USD33.2 million). Longer term,
the company will have debt of CLP232.7 billion (USD323.2 million).

The majority of the company's debt consists of three bank loans
from the Chinese Development Bank, with effective interest rates
ranging from 6.2% to 7.8%, which mature 2025-2028 and are backed by
shares in WOM Mobile SA and WOM SA. Once these are refinanced with
the proceeds from the transaction, Fitch expects that the company
will seek to organically deleverage by expanding EBITDA and
applying some excess free cash flow to the reduce debt.

The company has managed to grow and improve profitability, which
has led to a marked increase in cash flow generation. Fitch expects
robust pre-dividend FCF generation going forward, as EBITDA expands
in line and the company's capital expenditures decline from around
14% of revenues to 11% in the medium term. Fitch expects that the
company will maintain cash of around CLP20 billion-CLP25 billion
and upstream excess cash to shareholder Novator. The company's
liquidity is supplemented by the revolving credit facility.


Fitch has assigned the following ratings:

WOM Mobile S.A.

  -- FC and LC LT IDRs 'BB-'; Outlook Stable.

Kenbourne Invest S.A.

  -- USD senior unsecured notes 'BB-'.


  -- CLP Term Loan and RCF 'BB-'.

WOM SA: Moody's Assigns 'B1' Corp. Family Rating, Outlook Stable
Moody's Investors Service assigned a B1 corporate family rating to
WOM S.A. At the same time, Moody's assigned a B1 rating to the
proposed USD450 million 5-year senior unsecured notes to be issued
by Kenbourne Invest S.A. and unconditionally guaranteed by WOM. The
rating outlook is stable.

Proceeds will be used for debt refinancing of around USD350
million, dividend recapitalization of around USD250 million, and
general corporate purposes.

This is the first time Moody's assigns a rating to WOM.

The rating of the proposed notes assumes that the issuance will be
successfully completed and that the final transaction documents
will not be materially different from draft legal documentation
reviewed by Moody's to date. It also assumes that these agreements
are legally valid, binding and enforceable.

Ratings Assigned:

Issuer: WOM S.A.

  - Corporate Family Rating: B1

Issuer: Kenbourne Invest S.A.

  - USD450 million 5-year senior unsecured notes unconditionally
guaranteed by WOM S.A.: B1

Outlook Actions:

Issuer: WOM S.A.

  - Outlook Assigned: Stable

Issuer: Kenbourne Invest S.A.

  - Outlook Assigned: Stable


WOM's B1 corporate family rating reflects its relatively new, but
already well-established position in the competitive mobile
services market of Chile. The rating also takes into consideration
WOM's network with nationwide coverage, strong brand recognition
and cost-efficient structure that is resulting in improvements in
profitability and cash generation. Chile's stable operating and
regulatory environments also support the B1 ratings. The country
has the highest GDP per capita in Latin America, leading to high
ARPUs, and one of the highest mobile penetration rates in the
region, which offers good opportunity for growth in
telecommunications services.

WOM's ratings are constrained by its modest revenue size compared
with that of its global and local peers, intense competition in the
Chilean telecom market, and its relatively high leverage of 4.0x
total Moody's adjusted debt to EBITDA (pro-forma for the proposed
issuance). Moreover, the company has only a recent track record of
stronger profitability, with positive EBITDA achieved for the first
time in the 4Q'17, although expected to continuously improve going
forward. Accordingly, the B1 ratings also consider the execution
risks in WOM's plan to continue expanding its market share in the
competitive Chilean market in order to extract economies of scale
and reduce leverage.

Finally, the ratings incorporate the dividend recap of USD250
million that will be paid out with the proceeds of the new issuance
to its controlling shareholder Novator Partners LLP ("Novator") and
the risks of similar transactions in the medium term. Mitigating
this risk are WOM's conservative financial policies that include
maximum leverage and minimum cash levels as well as restriction in
dividend payments focusing on debt repayment and deleveraging of
the balance sheet.

WOM's controlling shareholder, Novator, is an investment firm with
around EUR3.0 billion of assets under management with focus on
telecoms, including incumbents and challengers. Novator has
know-how and proven track record in investing in emerging markets
telecom companies such as Play Communications S.A. (Ba3 stable),
the largest mobile operator in Poland. Novator acquired WOM
(formerly Nextel Chile) in 2015 and invested USD400 million in cash
into the company over the subsequent three years. Notwithstanding
the USD250 million dividend recap, Moody's expects to see continued
implicit support from the shareholder.

WOM's small scale relative to its global peers and short track
record are partly mitigated by the solid position it has built over
the past few years, reaching a 18% market share in the end of June
2019, with a total of 5.6 million subscribers, from 3% market share
in the end of 2015. WOM has been leading subscriber net additions,
with a focus on post paid subscribers, who on average generate
significantly higher ARPU and have lower churn rates than pre-paid
subscribers. WOM had a 20% market share in the post-paid segment in
the end of June 2019, according to SUBTEL. WOM's post-paid
subscriber base represented 45% of the company's subscriber base as
of June 2019.

Considering planned liquidity events, WOM will have a good
liquidity profile. In addition to the proposed USD450 million bond
issuance, the company is raising a new callable term loan of USD150
million due in 5 years with two-year grace period followed by equal
semi-annual amortizations, along with a two-year USD50 million
committed revolving credit facility. Accordingly, proforma for the
transactions the company will have approximately CLP24.6 billion
(approximately USD36 million) in cash and a comfortable debt
maturity profile, with no significant maturities until 2024. WOM
plans to direct excess cash to debt amortization until the 3.0x net
leverage target is achieved.

The stable outlook reflects its expectations that WOM will sustain
its positive momentum because of its high levels of customer
satisfaction and increased data usage in Chile, resulting in strong
net additions to its subscriber base. The stable outlook also
incorporates its assumption that the increase in leverage because
of the proposed debt issuance will be temporary and that WOM will
maintain its liquidity at adequate levels while keeping committed
to its below 3.0x net leverage target.

Positive pressure on WOM's rating would arise if the company is
able to reduce debt levels while posting sustained improvements in
profitability and revenue growth. Quantitatively, an upgrade would
be considered if the company reduces leverage below 3.75 times
while maintaining an EBITDA margin higher than 30%, and positive
free cash flow on a sustained basis.

The rating could be downgraded if the company's credit metrics
deteriorate because of weaker than expected performance.
Quantitatively ratings could be downgraded if leverage increases to
a level higher than 4.50 times for a prolonged time.
Higher-than-expected shareholder remuneration that pressures
liquidity and free cash flow generation, leaving no room for gross
debt reduction over time, would be also viewed negatively.

WOM, domiciled in Santiago, Chile, is a mobile telecommunications
services provider, serving more than 5.8 million clients across its
business segments that include mobile voice, data services and
mobile broadband. WOM was launched in 2015 after the acquisition
and rebranding of Nextel Chile S.A. by its controlling shareholder
Novator and became a well-established player in the Chilean mobile
market with a total subscriber base market share of about 18%. As
of June 30, 2019, post-paid subscribers accounted for 46% of the
company's total subscribers and represented 91% of usage revenues,
whereas pre-paid subscribers accounted for 54% and only 9% of usage
revenues. WOM had CLP503 billion in revenue and CLP123 billion in
EBITDA for the 12 months ended September 2019.

The principal methodology used in these ratings was
Telecommunications Service Providers published in January 2017.

WOM SA: S&P Assigns 'B+' Preliminary Issuer Credit Rating
Wom S.A., a Chilean mobile phone operator, plans to refinance its
existing capital structure and complete a shareholder dividend
recapitalization with a $450 million senior unsecured bond and a
$150 million term loan.  S&P Global Ratings expects the company to
post debt to EBITDA between 4.0x and 4.5x in 2019 but to rapidly
deleverage in next two years.

Accordingly, on Nov. 12, 2019, S&P assigned a 'B+' preliminary
issuer credit rating to Wom S.A. and 'B+' preliminary issue-level
rating to its proposed guaranteed $450 senior unsecured notes.

S&P said, "Our preliminary 'B+' issuer credit rating primarily
reflects Wom's high debt to EBITDA of 4.0x-4.5x in 2019, along with
smaller revenue and subscriber base, and narrower diversification
than those of higher rated peers. However, the company's growth
strategy has been very successful, given that it rapidly gained
market share that reached 20% as of September 2019 in Chile's
mobile phone market and we expect it to deleverage substantially in
the next two years amid improved profitability and cash flows."

WOM entered the Chilean market in 2015 after acquiring Nextel
assets in the country. A very aggressive pricing strategy allowed
the company to rapidly expand its subscriber base, taking advantage
from the gradual market conversion from prepaid to postpaid,
causing its market share to soar from about 1% in 2015 to 20% in
2019, with 5.8 million subscribers.

The relatively high prices in Chile were key for Wom to offer
low-price plans, resulting in a huge pricing gap between the
company and its competitors. the price advantage along with bold
and effective marketing strategy, allowed the company to carve out
a position as a 'value-for-money' provider with very good customer
perception. Additionally, Wom's lean management, relatively
low-cost structure, and lower acquisition costs than those of peers
underpinned its rapid margin improvement. Wom achieved positive
EBITDA only after two full years of operations, while its margins
approached 29%, only slightly below those of consolidated players,
four years after entering the market.

These strengths offset the limited scope of the company, which
remains a fourth-largest player in Chile's very competitive mobile
market with no product or geographic diversification and lower
spectrum than the rest of the Chilean operators. S&P views the
competition from larger operators--which have greater financial
resources, and broader product ranges and coverage--as a primary
constraint on the company's competitive position. Despite the sound
subscriber mix, with postpaid subscribers representing almost half
of its customer base, Wom's 'value-for-money' status results in
somewhat lower blended ARPU than those of Entel and Movistar.

Novator will take a dividend recapitalization after Wom's bond
issuance. S&P said, "We don't expect Novator to take any further
dividends during our outlook horizon, and we expect Wom to maintain
a conservative financial policy consisting of deleveraging in the
next two to three years, a target net leverage of 3.0x, and
comfortable liquidity position. Nonetheless, we factor the sponsor
ownership into our view of the company's financial policy."

S&P said, "We expect top-line organic growth, a rising EBITDA
margin, and very efficient capex to reduce leverage to the mid-3x
area in 2020 and to about 3.0x in 2021. Although we expect revenue
growth to moderate in the next couple of years, we believe the
company will continue gaining economies of scale that will allow
for constant cost dilution. Additionally, Wom has a track record of
very efficient and profitable capex, and with most of its network
already deployed, we expect the company to register sound free
operating cash flows starting next year."

D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Stock Market Continues Taking Firm Steps
Dominican Today reports that participating authorities of the Stock
Market and associates of the Dominican Republic continue to take
firm steps aimed at further development and strengthening of the

An example of this is the realization of the third International
Securities Market Summit 2019 in the Dominican capital, which is
organized by the Superintendence of the Securities Market (SIMV)
with the co-sponsorship of the Inter-American Development Bank
(IDB), according to Dominican Today.

"The Superintendence of the Securities Market has institutionalized
what we have called the Securities Market Summit, so that these
events can be converted into permanent forums to address the most
relevant issues of the capital markets of Latin America," said
Gabriel Castro, head of the SIMV, the report notes.

Also present was IDB representative, Miguel Coronado, who also
praised the advances in the securities market, the report adds.

                     About Dominican Republic

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

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

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: Tourist Arrivals Fall 3.8% in First 10 Months
Dominican Today reports the arrival to the Dominican Republic of
foreign tourists, the country's main source of foreign currency,
fell 3.8% in the first 10 months, the Central Bank reported.

The Dominican Republic accumulates five consecutive months of
decline in the arrival of foreign tourists, though partially offset
by the 15.2% growth in the number of Dominican tourists residing
abroad, according to Dominican Today.

The Central Bank attributed the data to the effects of the "media
campaign" related to the death of a dozen American tourists at the
beginning of the year in hotels in the Caribbean country, which the
Dominican Government and the FBI blamed on natural causes, the
report relays.

                     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

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).


JAMAICA: BOJ Injects Funds Into Foreign Exchange Market
RJR News reports that following weeks of anxiety over the local
currency losing value to the US dollar, the Bank of Jamaica (BOJ)
has again intervened in the foreign exchange market, selling US$40
million to authorized dealers and cambios.

In a statement, the BOJ reiterated that there has been an increase
in demand for foreign currency due to regular re-stocking by
retailers for the Christmas season, according to RJR News.

In addition, there has been extraordinary demand relating to
portfolio transactions, the report notes.

However, the Central Bank does not expect that the recent pace of
exchange rate movement will be sustained, the report relays.

The bank said it will only intervene to prevent disorderly market
conditions, the report notes.

                           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.


CEMEX SAB: S&P Rates New $1BB Senior Secured Notes Due 2029 'BB'
S&P Global Ratings assigned its 'BB' issue-level rating and
recovery rating of '3' to CEMEX S.A.B. de C.V.'s (global scale:
BB/Stable/--; national scale: mxA/Stable/mxA-1) proposed $1 billion
senior secured notes due 2029. The recovery rating of '3' indicates
that bondholders can expect a meaningful (50%-70%) recovery in the
event of a payment default.

CEMEX intends to use the net proceeds for general corporate
purposes, including repaying other debt, all in accordance with the
2017 Credit Agreement. The notes will be secured by a
first-priority security interest over all the shares of CEMEX
México S.A. de C.V., Cemex Operaciones México S.A. de C.V., CEMEX
TRADEMARKS HOLDING Ltd., New Sunward Holding B.V., and CEMEX Espana
S.A. (together, the collateral) and all proceeds of such
collateral. CEMEX's main subsidiaries will unconditionally
guarantee the notes, under the same terms as all of the company's
other senior capital market debt.


Key analytical factors

--  S&P has valued CEMEX on a going concern basis, given its
belief that it would continue to have a viable business model
because of its leading position in the markets where it operates.

-- S&P uses an EBITDA multiple valuation approach with a multiple
of 6.0x, given the company's stronger business risk profile than of
its peers, and an emergence EBITDA of $1.0 billion after a
cyclicality adjustment of 10%.

Simulated default assumptions

-- S&P's hypothetical simulated default scenario for CEMEX assumes
a sharp decline in cement demand, associated with continued
weakness in residential and non-residential construction activities
in the company's core markets, resulting in lower cash flow
generation. In this scenario, CEMEX would face restrictions in
accessing the debt capital markets to refinance its short-term

-- S&P assumes that the company would face a payment default in
2022, given the size of debt maturities due that year.
Simplified waterfall

-- S&P estimates CEMEX's unadjusted gross enterprise value at $6.0
billion and we deduct 5% in related administrative expenses, given
the company's complex capital structure, leading to a net
enterprise value of $5.6 billion.

-- S&P believes that this value would provide meaningful (50%-70%)
recovery prospects for the senior secured note holders. This would
lead to a negligible (0%-10%) recovery for the company's
subordinated debt, resulting in a two-notch rating differential
relative to the company's issuer credit rating.

  Ratings List

  CEMEX S.A.B. de C.V.

  Issuer Credit Rating
  Global Scale                      BB/Stable/--
  CaVal (Mexico) National Scale     mxA/Stable/mxA-1

  New Rating
  CEMEX S.A.B. de C.V.

  Senior Secured                    BB
  Recovery Rating                   3(60%)

GRUPO GICSA: S&P Alters Outlook to Negative & Affirms 'BB' ICR
On Nov. 11, 2019, S&P Global Ratings revised its outlook on Grupo
GICSA S.A.B. de C.V. (GICSA) to negative because it considers its
EBITDA and cash flows in the next 12 months are more vulnerable to
soft economic conditions. In S&P's view, GICSA could struggle to
improve its credit metrics due to elevated financing needs to
complete the construction of its residential project and move
forward on new commercial properties.

S&P said, "We also affirmed our 'BB' global and 'mxA' national
scale issuer credit ratings on the company. At the same time, we're
affirming our 'mxA' issue-level ratings and recovery ratings of '3'
(50%-90%) on its senior local notes.

"Exposure to a high-end residential project, slower-than-expected
openings of commercial properties, and a higher debt burden are
pressuring GICSA's credit metrics beyond our expectation for the
current rating level. During the past two quarters, GICSA's debt to
EBITDA has been above 7.5x, which we deem to be a considerable
deviation from our previous expectations of about 5.5x for the end
of 2019."

Moreover, GICSA's operations and credit profile are exposed to
Mexico's soft economic conditions in the next 12 months.
Particularly, a contraction of investment activities in Mexico and
non-durable goods consumption exacerbates the development and
execution risks inherent to GICSA's business model. S&P said, "In
our view, this has contributed to the company's opening delays in
2019. In addition, sales at GICSA's residential project, Cero5Cien,
are sluggish, given that 45% of the project's housing units were
sold as of September 2019, compared with 39% in September 2018. As
a result, the company's EBITDA, cash generation, and leverage
metrics have underperformed our previous forecast."

S&P said, "We expect Cero5Cien to generate revenue of MXN150
million - MXN200 million on a quarterly basis, given the current
sales pace. This would improve the company's EBITDA on nominal
terms, reaching about MXN3.4 billion and MXN3.9 billion in 2019 and
2020, respectively. These figures could increase if the company's
sales occur at a faster pace. However, we estimate GICSA's
financing needs will remain significant for the next two years,
given that the company is currently developing four commercial
properties, representing about 214,000 square meters (sq. m) of
additional gross leasable area (GLA; a 23% increase in GICSA's
total GLA), in addition to the finalization of its Cero5Cien
project. Even though we expect GICSA's stabilized properties'
rental income to continue rising by double digits in the next 12
months, we don't believe it will offset the substantial financing
needs, preventing the company from reducing its debt burden on
consistent basis."

Year-to-date, GICSA's GLA reached 911,683 sq. m, consisting of 16
properties including the recent inauguration of Explanada Pachuca
(about 75,022 sq. m). S&P said, "At the end of 2019, we expect the
Lomas Altas project to add 26,345 sq. m, while GICSA will open
Explanada Culiacan (74,912 sq. m) and Galerias Metepec (55,220 sq.
m) in 2020. We believe GICSA's properties benefit from prime
locations, mainly in Mexico City; a diversified tenant base; and
lease prices that are higher than the market average thanks to its
high-profile assets under management." These factors allowed
occupancy and renewal rates in its stabilized portfolio to reach
91% and 98%, respectively, in the third quarter of 2019. Moreover,
GICSA has ample experience in other real estate-related services
that contribute to its revenue base, including development
services, construction, commercialization, and property

The negative outlook reflects a potential downgrade in the next 12
months if the company's leverage metrics don't revert on a
consistent basis from debt to EBITDA above 7.5x. Such a scenario
could occur if GICSA incurs incremental debt or if EBITDA growth
suffers from delays, cost overruns at its residential project, and
weaker-than-expected rental income from its stabilized properties.

S&P could revise the outlook to stable in the next 12 months if
GICSA reports stronger-than-expected results, improving its
leverage metrics, with debt to EBITDA well below 7.5x on a
consistent basis, while maintaining its debt to capital below 50%.
This could happen if the residential project's EBITDA rises
steadily, coupled with a stronger operating performance at the
stabilized portfolio, which would reduce the company's financing


PARAGUAY: 2019 Growth Expected to be Near Zero, IMF Says
An International Monetary Fund (IMF) staff team led by Mr. Bas
Bakker visited Asuncion during November 6-12, 2019 to discuss
recent economic developments and policies. At the conclusion of the
visit, Mr. Bakker issued the following statement:

"Paraguay's economy has been impacted by several shocks this year.
Agricultural output was first hit by a drought and then by
flooding. Hydro-electricity production was hurt by low water
levels. Exports suffered from economic weakness in Argentina and
Brazil and the sharp depreciation of the peso. And all these shocks
spilled over to the rest of the economy. As a result, we now expect
growth in 2019 to be near-zero.

"However, our expectation is for growth to bounce back to 4 percent
next year. The recovery that has been visible in recent months
should pick up steam, aided by a rebound in agriculture.

"There are regional and global risks to economic growth in 2020. An
important source of risk is developments in Paraguay's main
regional trading partners. Risks from Argentina not only pertain to
low growth, but also to a further decline of the peso, which would
hurt cross-border trade. At the global level, the ongoing trade
tensions between China and the United States are weighing on global
growth prospects. However, downturns in Paraguay tend to be
followed by strong recoveries -- bad weather has only a temporary
impact on the economy.

"Headline inflation has fallen from 4 percent in August 2018 to 2.4
percent in October 2019, below the middle of the target band of 4
+/- 2 percent. In this setting, the BCP has appropriately lowered
the policy rate this year by 125 basis points to 4.00 percent.

"The economic downturn has resulted in a shortfall of tax revenue.
Together with a rebound in public investment (which mitigated the
recession), this has resulted in an increase in the deficit from
1.3 percent of GDP in 2018 to an expected 2.5 percent in 2019.
While this is above the 1.5 percent deficit ceiling stipulated in
the Fiscal Responsibility Law, the FRL does allow a temporary
excess of the deficit over the ceiling in case of a fall in
domestic economic activity, and credibility will be maintained if
strong efforts are made to return to the ceiling.

"In the past fifteen years, sound macroeconomic policies have
played a key role in sustaining rapid growth and reducing poverty.
Sound fiscal policies, together with the inflation targeting
framework of the central bank, contributed to avoiding the
boom-bust cycles that other countries in the region have
experienced. The FRL has been an important anchor to keep fiscal
policy sound. It has helped keep deficits and public debt at
moderate levels and warded off worries about debt sustainability.
In this context, abandoning the FRL would jeopardize the hard-won
fiscal credibility that took various governments years to build. It
could also increase the borrowing costs for Paraguay in
international capital markets. It is important therefore that the
deficit continues to abide by the rules spelled out in the FRL.

"Returning to the 1.5 percent of GDP deficit ceiling next year will
be challenging and will require keeping spending growth in check --
including from the wage bill, which has been growing rapidly in
recent years. It will also be important that any additional
spending approved by Congress after the budget has been finalized
will be offset by spending reductions elsewhere. If tax revenue
were to fall short of expectations next year, commensurate spending
adjustments will be needed.

"A paramount issue facing Paraguay is to ensure that the rapid
growth of the past fifteen years will continue in the next fifteen
years. For this to occur the economy will need to diversify, as
agriculture will likely not be able to provide the boost it has in
the past. Improvements in infrastructure, education, governance and
business climate would all contribute to this important goal. Some
of these needed reforms will require additional resources, putting
further pressure on expenditure.

"Current revenue levels are not sufficient to finance these
reforms. There is certainly some scope to reprioritize existing
spending and make spending more efficient, so it will be important
to implement the recommendations by the joint public-private
commission for the consolidation of current expenditure. These
efforts are all the more warranted given that the composition of
expenditure has deteriorated, trending towards a higher wage bill
and higher interest payments, rather than higher investments. But
revenues will need to increase as well. The tax reform that has
recently been approved was a good first step, but more may be

"Fiscal sustainability would also benefit from pension reform.
Modest parametric changes now are needed to prevent that large
deficits will emerge in the pension sector within the next decade,
as a result of demographic changes. Unfortunately, the recent
increases in retirement benefits for selected groups that were
approved by Congress go in the wrong direction, as they add to
existing medium- and long-term pressures from demographic trends.
It is also important to establish a pension fund supervisor, just
as for other financial institutions that are custodians of the
population's savings. Strengthened oversight would mitigate risks,
allow pension funds to invest in a wider range of assets, and
facilitate the development of a domestic capital market.

"Paraguay has seen improvements in governance and corruption
indicators, both in absolute terms and relative to the region, but
more remains to be done. At the request of the government, the IMF
is helping the government analyze the problem and develop a
strategy, which will be discussed in the Article IV report next
year. The authorities have also taken legal initiatives to tackle
the emerging money laundering and cybersecurity risks for the
financial system including compliance with AML-CFT standards."

The IMF mission met with government officials, private sector
representatives and academics during its stay. It wishes to thank
the authorities for their hospitality and fruitful discussions .

P U E R T O   R I C O

ALICES SCHOOL: Seeks to Hire Moreno & Soltero as Legal Counsel
Alices School Inc. seeks authority from the U.S. Bankruptcy Court
for the District of Puerto Rico to employ Moreno & Soltero Law
Office, LLC as its legal counsel.

The firm will advise the Debtor of its powers and duties under the
Bankruptcy Code and will provide other legal services in connection
with its Chapter 11 case.  

Moreno & Soltero will bill $200 per hour and will receive
reimbursement for work-related expenses.  The firm received $4,283
as retainer, plus $1,717 for the filing fee.

Rosana Moreno Rodriguez, Esq., at Moreno & Soltero, disclosed in
court filings that she and other members of the firm are
"disinterested" within the meaning of Section 101(14) of the
Bankruptcy Code.

Moreno & Soltero can be reached through:

     Rosana Moreno Rodriguez, Esq.
     Moreno & Soltero Law Office, LLC
     P.O. Box 679
     Trujillo Alto, PR 00977
     Phone: (787) 750-8160
     Fax: (787) 750-8243

           About Alices School Inc.

Based in Carolina, Puerto Rico, Alices School Inc. filed its
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
D. P.R. Case No. 19-05929) on Oct. 15, 2019, listing under $1
million in both assets and liabilities. Rosana Moreno Rodriguez,
Esq., at Moreno & Soltero Law Office, LLC, represents the Debtor as

COPY DU SERVICES: Hires Pablo E. Garcia Perez as Attorney
Copy Du Services Corp., seeks authority from the U.S. Bankruptcy
Court for the District of Puerto Rico to employ Pablo E. Garcia
Perez, Esq., as attorney to the Debtor.

Copy Du Services requires Pablo E. Garcia Perez to represent and
provide legal services to the Debtor in relation to the Bankruptcy

Pablo E. Garcia Perez will be paid at the hourly rate of $150.

Pablo E. Garcia Perez will also be reimbursed for reasonable
out-of-pocket expenses incurred.

Pablo E. Garcia Perez, assured the Court that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code and does not represent any interest adverse to
the Debtor and its estates.

Pablo E. Garcia Perez can be reached at:

     Pablo E. Garcia Perez, Esq.
     24 Suite 58 Ave Roberto Clemente
     Carolina, P.R. 00985
     Tel: (939) 456-4849
     Fax: (787)276-2750

                   About Copy Du Services Corp.

Copy Du Services Corp filed its petition for reorganization under
Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 18-06268)
on Oct. 26, 2018, estimating under $1 million in both assets and
liabilities.  Juan Carlos Bigas Valedon, Esq., at Juan C. Bigas
Valedon Law Office, is the Debtor's counsel.

PUERTO RICO: Gets Near-Failing Grade on Infrastructure Report Card
Karen Pierog at Reuters reports that Puerto Rico's roads, ports,
energy grid and other infrastructure scored an overall D-minus in
the first report card issued for the U.S. commonwealth on Tuesday
by an engineering group, which put a price tag of as much as $23
billion over 10 years on needed updates and repairs.

The near-failing grade from the American Society of Civil Engineers
comes as the island is still trying to recover from devastating
hurricanes that hit in 2017 and as its bankrupt government attempts
to restructure about $120 billion of debt and pension obligations
in federal court, according to Reuters.

Most of the island's infrastructure is in "poor condition" and is
exhibiting "significant deterioration," according to the report,
Reuters relays.

Puerto Rico would need to spend an additional $13 billion to $23
billion over 10 years "to update infrastructure in order to support
economic growth and competitiveness," the report said, Reuters

It added that "when considering deferred maintenance and
hurricane-related recovery projects, the investment gap is even
larger," Reuters relates.

So far, the U.S. government has sent the island $14.4 billion of
the $43 billion in disaster funding that has been allocated,
Reuters notes.

The report card assigned the lowest grade of F to Puerto Rico's
energy infrastructure, which it said was already in poor condition
before Hurricanes Irma and Maria demolished much of the electrical
grid, leading to extended blackouts, Reuters says.

A $20.3 billion, 10-year plan to modernize and decentralize Puerto
Rico's power network was unveiled last month by Governor Wanda
Vazquez Garced, Reuters notes.

The rest of the island's infrastructure was determined to be "at
risk." Dams, bridges and the wastewater system earned D-plus
grades, while ports and drinking water were graded D and roads and
solid-waste system were a notch lower at D-minus, Reuters says.

Recommendations included creating and adhering to a long-term
comprehensive infrastructure plan and increasing resilience by
building to modern industry standards, Reuters adds.

                        About Puerto Rico

Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70 billion,
a 68% debt-to-GDP ratio and negative economic growth in nine of the
last 10 years.

The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.

The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III of
2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').

The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017.  On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").

U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases.  The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that may
be referred to her by Judge Swain, including discovery disputes,
and management of other pretrial proceedings.

Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.

The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.

Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.

McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets Inc.
is the Board's municipal investment banker.

Prime Clerk LLC is the claims and noticing agent.  Prime Clerk
maintains a case web site at

Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.

O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.

The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.

                    Bondholders' Attorneys

Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet, Rivera
& Sifre, P.S.C. and serve as counsel to the Mutual Fund Group,
comprised of mutual funds managed by Oppenheimer Funds, Inc., and
the First Puerto Rico Family of Funds, which collectively hold over
$4.4 billion of GO Bonds, COFINA Bonds, and other bonds issued by
Puerto Rico and other instrumentalities.

White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.

Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP, Autonomy
Capital (Jersey) LP, FCO Advisors LP, and Monarch Alternative
Capital LP.

Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.

Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ Management
II LP (the QTCB Noteholder Group).


The U.S. Trustee formed an official committee of retirees and an
official committee of unsecured creditors of the Commonwealth.  The
Retiree Committee tapped Jenner & Block LLP and Bennazar, Garcia &
Milian, C.S.P., as its attorneys.  The Creditors Committee tapped
Paul Hastings LLP and O'Neill & Gilmore LLC as counsel.

                         Puerto Rico PBA

The Puerto Rico Public Buildings Authority -- is a public corporation created by
Act No. 56 of June 19, 1958, as amended.  The Authority is charged
with satisfying the needs of design, construction, remodeling,
improvements, operation and maintenance of the structures that the
agencies, corporations and instrumentalities of the Commonwealth of
Puerto Rico need to offer their services.  Among the facilities
that the Authority designs, builds and preserves are: schools,
hospitals, police facilities, prisons, fire stations and government
centers, among others.  In addition, the Authority provides
property leasing services and new spaces for server storage (Data

The Puerto Rico Public Buildings Authority, a/k/a Autoridad de
Edificios Publicos de Puerto Rico (AEP), commenced a Title III case
under PROMESA on Sept. 27, 2019 (Bankr. D.P.R Case No. 19-05523).


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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