TCRLA_Public/191217.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

          Tuesday, December 17, 2019, Vol. 20, No. 251

                           Headlines



A R G E N T I N A

COMPANIA LATINOAMERICANA: S&P Affirms 'CCC' ICR on Exchange Offer
VICENTIN: Negatively Affected by Recurring Crises, Argentine Risk


B E R M U D A

FLOATEL INTERNATIONAL: S&P Withdraws 'CCC' LT Issuer Credit Rating


B R A Z I L

BRAZIL: Study Points out Need for BRL40 Billion Investment in Rio
OI SA: Requests Court to Extend Judicial Recovery Deadline


C O L O M B I A

BANCOLOMBIA SA: Fitch Rates US$ Subordinated Notes Final BB+


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Instability, Lack of Confidence Await in 2020
DOMINICAN REPUBLIC: Peso Registers Its Most Intense Depreciation


J A M A I C A

JAMAICA: DBJ to Lend $5 Billion to MSMEs Next Year
JAMAICA: Moody's Upgrades Sr. Unsec. Ratings to B2, Outlook Stable
JAMAICA: Seeking US$100M Grant From China to Build Road


M E X I C O

GRUPO FAMSA: S&P Cuts ICR to CCC- on Still High Refinancing Needs
TUXPAN: Moody's Ups Issuer Ratings to B1; Alters Outlook to Stable


P U E R T O   R I C O

ONE ALLIANCE: A.M. Best Affirms B (Fair) Financial Strength Rating

                           - - - - -


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A R G E N T I N A
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COMPANIA LATINOAMERICANA: S&P Affirms 'CCC' ICR on Exchange Offer
-----------------------------------------------------------------
On Dec. 13, 2019, S&P Global Ratings affirmed its 'CCC' issuer
credit and senior unsecured debt ratings on Compania
Latinoamericana de Infraestructura y Servicios S.A. (CLISA). S&P
also assigned a 'CCC-' rating to the new senior secured notes.

S&P said, "The exchange offer is occurring under distressed
conditions, but in our view there's not enough evidence of loss in
value. Under our criteria, the hybrid bond PIK exercise will cause
the senior secured note rating temporarily drop to 'D'. In the
meantime, the company is facing high refinancing risk amid
Argentina's economic turmoil and shrinking construction business."


VICENTIN: Negatively Affected by Recurring Crises, Argentine Risk
-----------------------------------------------------------------
Maximilian Heath at Reuters reports that Argentine soy crushing
giant Vicentin said it had "been negatively affected by the
backdrop of recurring crises, increased financing costs, closure of
markets and the constant rise of Argentine risk."

As previously reported in the Troubled Company Reporter - Latin
America, Vicentin is struggling to repay over $350 million in debt
and some plants are likely to halt production while it seeks relief
amid an economic slowdown in the country.

"In the short term it will affect the commercial operation because
producers are not going to deliver products and some of the plants
will likely halt production," a source close to the firm, who asked
not to be named, said, the report relays.

Vicentin exported 5.7 million tonnes of oils and byproducts last
year, Argentine government data show, the report relays.  It was
the sixth largest exporter overall of cereals, oilseeds and
byproducts combined, the report notes.

                     'Whole System Shudders'

"This is a question of a particular company's short-term financial
situation," Gustavo Idigoras, head of the Argentine agro-industrial
export chamber CIARA-CEC, told Reuters.

"The crushing industry in Argentina is going through a difficult
situation since October last year when the government decided to
raise taxes on exports of soy products," he said, the report
relays.

Another industry official said that while other firms were not in
the same position as Vicentin, the debt concern did not help things
in the sector, the report notes.  "It's like when there is a bank
that has problems; the whole system shudders a bit," he said, the
report discloses.

Argentina, a major grains exporter, relies on overseas sales of its
crops to raise much-needed dollars. Processed soy -- including soy
oil and meal -- is Argentina's top export, the report relays.

Argentina, which has been mired in recession for most of the last
year, is grappling with interest rates above 60%, biting inflation,
a painful debt pile and newly imposed currency controls to protect
dwindling central bank foreign reserves, the report relates.

The center-left Peronist's new government, which will take office
on Dec. 10, faces restructuring talks with creditors over around
$100 billion in sovereign debt amid concerns Latin America's No.3
economy could suffer a damaging default, the report notes.

Argentina's grains farmers have raised concerns the new government
could further raise export taxes, pushing some to cut production,
the report notes. Grains crushers were also already facing pressure
from domestic economic woes and the global trade war, the report
adds.



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B E R M U D A
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FLOATEL INTERNATIONAL: S&P Withdraws 'CCC' LT Issuer Credit Rating
------------------------------------------------------------------
S&P Global Ratings has withdrawn its 'CCC' long-term issuer credit
rating on Floatel International Ltd. at the company's request.

At the time of the withdrawal, the outlook was negative. It
reflected S&P's view that, in the next 6-12 months, Floatel might
engage in a distressed exchange-type of offer to lenders.




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B R A Z I L
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BRAZIL: Study Points out Need for BRL40 Billion Investment in Rio
-----------------------------------------------------------------
Rio Times Online reports that entrepreneurs from FIRJAN (Federation
of Industries of the State of Rio de Janeiro) on November 28,
handed President Jair Bolsonaro a study that underscores the need
for R$40.4 billion (US$10 billion) investments in infrastructure
for the state of Rio de Janeiro to resume a trajectory of social
and economic development.

Businessmen from all over the state met with legislators, to whom
they submitted a list of demands specific to their respective
regions, including sanitation, education, housing, urban mobility,
and public safety areas as priorities, according to Rio Times
Online.

As reported in the Troubled Company Reporter-Latin America on Nov.
18, 2019, Fitch Ratings affirmed Brazil's Long-Term Foreign
Currency Issuer Default Rating at 'BB-'. The Rating Outlook is
Stable.

OI SA: Requests Court to Extend Judicial Recovery Deadline
----------------------------------------------------------
Dorah Feliciano at Rio Times Online reports that after the market
closed on Friday, December 6, Oi had petitioned the 7th Business
Court of Rio de Janeiro for an extension of its judicial recovery
deadline.

Originally, the court proceeding would end on February 4, 2020, two
years after the filing of the original reorganization petition,
according to Rio Times Online.

Oi argues that this extension after two years is a "logical
measure" that has been used in most judicial reorganization
proceedings, and that "it has already completed most of the stages
established in the proceeding," the report notes.

As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings, on Sept. 12, 2019, affirmed its global scale 'B'
issuer credit and issue-level ratings on Oi S.A. and revised the
outlook to negative from stable. At the same time, S&P lowered its
national scale rating to 'brA-' from 'brA' and assigned a negative
outlook.



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C O L O M B I A
===============

BANCOLOMBIA SA: Fitch Rates US$ Subordinated Notes Final BB+
-------------------------------------------------------------
Fitch Ratings assigned 'BB+' final long-term ratings to Bancolombia
S.A.'s U.S. dollar subordinated notes.

The final ratings follow a review of the final terms and conditions
conforming to information already received when Fitch assigned the
expected ratings on Nov. 26, 2019.

The net proceeds of these subordinated notes will be used to
replace a portion of the existing old notes and for general
corporate purposes.

KEY RATING DRIVERS

The final rating assigned to Bancolombia's new subordinated
issuance is two notches below Bancolombia's viability rating (VR)
of 'bbb', and reflects loss severity exclusively. There is no
notching due to incremental non-performance risk.

The notes do not incorporate going-concern loss-absorption
characteristics given the relatively low write-off trigger
(Regulatory CET1 at or below 4.5%), which, in Fitch's view, would
only be effective at the point of non-viability, and also
considering the fact that coupons are not deferred or cancellable
before the principal write-off trigger is activated. As such, no
notches are deducted from the VR for incremental non-performance
risk. If Bancolombia's capital ratio falls below 4.5%, the
outstanding principal amount of these notes may be permanently
reduced to the extent required to restore the bank's capital ratio
to 6%. This full write-down feature of the notes heavily influences
the two-notch loss severity applied.

The securities, which comply with local Tier II capital
requirements, rank junior to all senior unsecured creditors, pari
passu with all other present or future Tier II capital subordinated
indebtedness and senior to the bank's capital stock, including any
other instrument that may qualify as Tier I capital according to
local banking regulation.

RATING SENSITIVITIES

The subordinated debt rating is sensitive to a change in
Bancolombia's VR. The rating is also sensitive to a wider notching
from the VR if there is a change in Fitch's view on the
non-performance of these instruments on a going concern basis,
which is not the baseline scenario.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Fitch currently rates Bancolombia as follows:
  
  -- Long-Term Foreign Currency IDR 'BBB'; Outlook Negative;

  -- Short-Term Foreign Currency IDR 'F2';

  -- Long-Term Local Currency IDR 'BBB'; Outlook Negative;

  -- Short-Term Local Currency IDR 'F2';

  -- Viability Rating 'bbb';

  -- Support Rating '2';

  -- Support Rating Floor 'BBB-';

  -- Senior unsecured debt 'BBB';

  -- Subordinated debt 'BBB-';

  -- Subordinated debt 'BB+'.



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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: Instability, Lack of Confidence Await in 2020
-----------------------------------------------------------------
Dominican Today reports that Dominican Republic will have a
positive year 2020 in economic terms, because it will be immersed
in electoral processes, and will be the scene of political
instability as a result of the division of the Dominican Liberation
Party (PLD) and the lack of confidence of the population in the
political parties, said the prominent economist Bernardo Vega.

Participating in the latest Intec Dialogue for Action (DIA) on the
topic "Dominican Republic: balance and political, economic and
social perspectives for 2020," the expert warned however that the
Dominican State is corrupt, "clientelist" and of welfare, according
to Dominican Today.

Vega, in charge of analyzing the economic aspects, stressed that
the growth of the economy in 2018 was lower than in previous years,
between 4 and 5%, "which implies that the impact on employment was
not so positive," the report notes.

                    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: Peso Registers Its Most Intense Depreciation
----------------------------------------------------------------
Dominican Today reports that in 2019, the depreciation of the
Dominican peso has accumulated the most intense variation of the
last four years.  As of December 12, 2019, the peso had lost 5.22%
of its value, according to data from the Central Bank, reports
Dominican Today.

In previous years the devaluation has been smaller: 3.84% in 2018,
2.99% in 2017 and 2.32% in 2016, the report notes.

                    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
=============

JAMAICA: DBJ to Lend $5 Billion to MSMEs Next Year
--------------------------------------------------
RJR News reports that the Development Bank of Jamaica (DBJ) is to
lend $5 billion to micro, small and medium-sized enterprises
(MSMEs) over the next 12 months.

Minister of Finance Dr. Nigel Clarke said the loans will be
facilitated under the Government's revamped Credit Enhancement
Facility (CEF), according to RJR News.

The CEF, which is financed by the Inter-American Development Bank,
was established in 2009 to increase access to credit for MSMEs that
lacked adequate collateral to secure loans, the report relays.

                           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: Moody's Upgrades Sr. Unsec. Ratings to B2, Outlook Stable
------------------------------------------------------------------
Moody's Investors Service upgraded the Government of Jamaica's
long-term issuer and senior unsecured ratings to B2 from B3, and
senior unsecured shelf rating to (P)B2 from (P)B3. The outlook has
been changed to stable from positive.

The key drivers of rating upgrade are:

  -- Jamaica's strong commitment to fiscal consolidation and
structural reforms portends to continued decline in government debt
and sustained improvements in economic resiliency

  -- Improving debt structure limits risks associated with a high
levels of government debt

The stable outlook reflects Moody's expectations that the
improvements in Jamaica's credit profile, which have improved
macroeconomic stability and put debt on a downward trend, will be
sustained. The stable outlook also reflects the structural credit
constraints due to the country's small size, sizeable economic
concentration in the tourism industry, low economic growth and
vulnerability to external shock.

In a related action, Moody's has also upgraded the senior unsecured
debt ratings of government-related entities Air Jamaica Limited and
National Road Operating and Construct. Co Ltd. to B2 from B3. These
ratings are based on an explicit debt guarantee provided by the
government. The outlook on the ratings has been changed to stable
from positive.

Moody's also raised Jamaica's long-term local-currency bond and
deposit ceilings to Ba1 from Ba2, as well as the long-term
foreign-currency deposit ceiling to B3 from Caa1. The long-term
foreign-currency bond ceiling remains at Ba3. The short-term
foreign-currency bond and deposit ceilings remain at NP.

RATINGS RATIONALE

RATIONALE FOR THE UPGRADE TO B2

FIRST DRIVER: JAMAICA'S STRONG COMMITMENT TO FISCAL CONSOLIDATION
AND STRUCTURAL REFORMS PORTENDS TO CONTINUED DECLINE IN GOVERNMENT
DEBT AND SUSTAINED IMPROVEMENT IN ECONOMIC RESILIENCY

The Jamaican authorities have built up a track record of improved
fiscal policy management and demonstrated a commitment to fiscal
consolidation and structural reforms over the past six years. This
commitment, in turn, has supported a reduction in economic
imbalances. Moody's expects the government to continue to run large
primary surpluses, well in excess of those necessary to stabilize
debt, and will maintain the downward trend in debt metrics. Moody's
sees government debt falling to around 94% of GDP at the end of
fiscal year 2019/20, from a peak of 135% in fiscal year 2010/2011,
and anticipates further declines to 84% of GDP at the end of fiscal
year 2021/22.

Moody's sees little risk of policy reversal which would undue the
downward trend in the government debt ratio. The government has
made substantial improvements on both revenue and expenditures,
which Moody's doesn't expect to reverse in any meaningful way. The
improvements in government revenue intake will keep tax
revenue-to-GDP at around 26% of GDP, favorably high for a B-rated
credit. While the structure of government spending remains
relatively rigid, spending flexibility has improved. In fiscal year
2018/19, interest and wages account for 52% of government revenue,
compared to 69%, respectively, in fiscal year 2014/15.

Structural reforms have improved the macroeconomic framework in a
way that enhances Jamaica's ability to absorb economic shocks. In
particular, the shift to inflation targeting has allowed the Bank
of Jamaica to ease monetary policy, stimulating demand for credit
and supporting a pickup in credit growth. Additionally, the
exchange rate, which is now freely floating, is the first line of
defense to absorb shocks. The central bank has accumulated sizeable
foreign exchange reserves, which as of October 2019 were sufficient
to cover close to 6 months of goods and services imports.

Recognizing that Jamaica is one of the most exposed countries to
natural disasters and climate change, the government has taken a
number of steps to enhance the country's resilience to these risks.
The government has developed a disaster risk financing strategy
where it seeks to build a buffer to cover immediate financing needs
after a weather-related event. This will reduce the need to shift
budget resources to reallocate spending to post-disaster risk
management.

SECOND DRIVER: IMPROVING DEBT STRUCTURE LIMITS RISKS ASSOCIATED
WITH A HIGH DEBT BURDEN

The Jamaican government has reduced gross borrowing requirements
and lengthened the average maturity of its debt stock, while also
reducing the cost of debt, resulting an improving debt structure.

Jamaica has taken advantage of favorable market conditions to
conduct liability management operations and issue longer-dated
external commercial bonds, using the proceeds to buyback upcoming
maturities of external debt. This has two positive effects on
Jamaica's debt profile. First, by issuing longer-dated bonds --
most recently re-opening an existing bond maturing in 2045 -- to
buyback bonds maturing over the next five to eight years, the
government has significantly reduced rollover risk, reducing
Jamaica's susceptibility to a tightening of financial conditions or
a sudden increase in the cost of borrowing. Second, the average
time to maturity on Jamaica's government debt has lengthened to
11.3 years in December 2018, from 9.6 years in 2014.

Moody's estimates amortizations on external debt will be no more
than 4% of GDP in any single year between now and fiscal 2023/24.
Domestic debt amortizations will also remain between 3-4% of GDP
over the next three years thanks to past liability management
operations.

Jamaica benefits from a relatively deep domestic investor base,
which allows the government to issue debt in local currency at
relatively favorable interest rates. Total financial system assets
as a percentage of GDP stood at 213% as of September 2018
(including central bank assets), which compares favorably to most
B-rated credits. Domestic institutional investors provide a source
of long-term domestic funding to the government, which increases
its ability to issue debt at relatively long maturities.

Moody's notes however that the government's debt structure remains
exposed to adverse foreign exchange movements because a significant
portion of its debt is denominated in foreign currency.
Foreign-currency denominated debt accounts for 62% of government at
the end of fiscal year 2018/19, and Moody's expects this ratio will
remain at a similar level going forward.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's expectations that the
improvements in Jamaica's credit profile, which have improved
macroeconomic stability and put debt on a downward trend, will be
sustained. However, structural constraints due to the country's
small size, sizeable economic concentration in the tourism
industry, low economic growth and vulnerability to external shock
mean that despite improved resilience, Jamaica's economy remains
exposed to shocks. Even with a very significant decline in its debt
burden, Jamaica's debt and interest burdens remain high, and above
those of similarly rated peers.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

Environmental considerations are material to Jamaica's credit
profile. As a small island economy, the country is highly exposed
to the impact of climate change. Jamaica is exposed to a number of
weather-related natural disasters, such as hurricanes, tropical
storms, earthquakes, droughts, floods and landslides. These events
can have a significant impact on Jamaica's credit profile:
increasing volatility of GDP through the impact of floods on
agriculture output, lower revenue and higher government debt as a
result of lower GDP growth and cost of reconstruction following
severe tropical storms and hurricanes.

Social risks also inform Moody's view on Jamaica's credit profile.
High crime rates represent one of the most significant structural
obstacles to growth in Jamaica, with a negative effect on
investment. In addition, an aging population and high rates of net
migration, particularly among highly-skilled workers, represents a
loss of human capital.

Governance considerations are material to Jamaica's credit profile
and are a key driver in Moody's assessment of institutions and
governance strength. The government has made significant strides in
improving overall policy effectiveness, as demonstrated by
improvement in revenue collection, improving the flexibility of
government spending, and the introduction of fiscal rules which
have allowed for a significant reduction in government debt. In
addition, the central bank's transition to inflation targeting and
improved transparency have also supported policy effectiveness.

WHAT COULD MOVE THE RATING UP

Moody's would upgrade Jamaica's rating if it conclude that a
combination of the government's continued commitment to
institutional and economic reforms, combined with evidence of
higher real GDP growth rates, will result in greater economic
resiliency which remains constrained by country's inherent exposure
to shocks. Debt declines and increases in external buffers beyond
current expectations would also be positive.

WHAT COULD MOVE THE RATING DOWN

Conversely, a sharp reversal in the decline in government debt
would weigh on Jamaica's credit profile, particularly as Jamaica's
B2 rating incorporates a steady decline in the debt-to-GDP ratio.
This could result from a weakening in the government's fiscal
performance or from adverse exchange rate developments. An increase
in external vulnerability, as reflected in a decline in the
country's international reserve buffer would also be negative.
Severe weather-related events that materially affect government
finances threatening the sovereign's ability to service debt could
also trigger a negative rating action.

GDP per capita (PPP basis, US$): 9,473 (2018 Actual) (also known as
Per Capita Income)

Real GDP growth (% change): 1.9% (2018 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 2.4% (2018 Actual)

Gen. Gov. Financial Balance/GDP: 1.2% (2018 Actual) (also known as
Fiscal Balance)

Current Account Balance/GDP: -2.3% (2018 Actual) (also known as
External Balance)

External debt/GDP: 91.8%/GDP (2018 Actual)

Level of economic development: a 'ba3' level of economic
resilience

Default history: At least one default event (on bonds and/or loans)
has been recorded since 1983.

On December 06, 2019, a rating committee was called to discuss the
rating of the Jamaica, Government of. The main points raised during
the discussion were: The issuer's institutions and governance
strength, have increased. The issuer's fiscal or financial
strength, including its debt profile, has materially increased.
Other views raised included: The issuer's economic fundamentals,
including its economic strength, have not materially changed. The
issuer's susceptibility to event risks has not materially changed.

The principal methodology used in these ratings was Sovereign
Ratings Methodology published in November 2019.

JAMAICA: Seeking US$100M Grant From China to Build Road
-------------------------------------------------------
RJR News reports that Jamaica is seeking a grant of US$100 million
from the Chinese government to build out the road access
infrastructure in the Blue Mountain region.

Agriculture Minister Audley Shaw said this will assist in
increasing production and quality of Blue Mountain coffee,
according to RJR News.

In her address on the weekend at inaugural awards banquet of the
Jamaica Coffee Exporters Association (JCEA), president of the
Jamaica Promotions Corporation (JAMPRO), Diane Edwards, said her
organisation is committed to working with the JCEA to build up the
coffee industry and find new markets, 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.



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M E X I C O
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GRUPO FAMSA: S&P Cuts ICR to CCC- on Still High Refinancing Needs
-----------------------------------------------------------------
On Dec. 13, 2019, S&P Global Ratings lowered its global and
national scale issuer credit ratings on Mexico-based retail company
Grupo Famsa S.A.B. de C.V. (GFamsa) to 'CCC-' from 'CCC+' and to
'mxCCC-' from 'mxCCC+', respectively. At the same time, S&P lowered
its issue-level rating on the company's senior unsecured notes due
2020, to 'CCC-' from 'CCC+'.

On Dec. 11, 2019, GFamsa announced the results of its exchange
offer, under which the company validly tendered 57.80% (or US$80.9
million) of its outstanding US$140 million senior unsecured notes,
while the remaining US$59.1 million is due June 1, 2020. In S&P's
view, the exchange settlement for US$80.9 million doesn't address
in full the company's refinancing needs, and it considers that
liquidity risks have increased given still high debt maturities
coming due in the next six months. On a pro forma basis, GFamsa's
short-term debt maturities are about MXN2.9 billion, which include
local notes, bank debt, and the outstanding balance of US$59.1
million of senior unsecured notes due 2020.


TUXPAN: Moody's Ups Issuer Ratings to B1; Alters Outlook to Stable
------------------------------------------------------------------
Moody's de Mexico S.A. de C.V. upgraded the issuer ratings for the
Municipality of Tuxpan to B1/Baa2.mx from B2/Ba1.mx (Global Scale,
local currency/Mexico National Scale) and upgraded its baseline
credit assessment to b1 from of b2. The outlook on the ratings was
changed to stable from positive.

At the same time, Moody's de Mexico upgraded the debt ratings of
the municipality's MXN 220 million enhanced loan (original face
value) with Banorte to Ba2/A2.mx from Ba3/A3.mx (Global Scale,
local currency/Mexico National Scale).

RATINGS RATIONALE

RATIONALE FOR THE BCA AND ISSUER RATINGS UPGRADE

The upgrade of the BCA to b1 from b2 and issuer ratings to
B1/Baa2.mx from B2/Ba1.mx reflects the continuous improvement of
Tuxpan's operating and financial balances which led to a
significant increase in the municipality's liquidity position. The
B1/Baa2.mx ratings also reflect ongoing credit challenges including
a relatively high debt burden and low own-source revenues
collection.

From 2016 to 2018, the municipality maintained both the gross
operating balance and the cash financing balance at strong levels,
standing at an average of 11% of operating revenues and 17% of
total revenues, respectively. These results have been driven by a
higher increase in operating revenues and a controlled rise in
operating expenditures, with compound annual growth rates from
2016-2018 of 7.3% and 5.6%, respectively. Additionally, other
earmarked revenues have been stable, in contrast to the general
downward trend in the sub-sovereign sector, which has helped to
finance and maintain capital spending at important levels of 20%,
on average, of total revenues. For 2019-20 Moody's expects Tuxpan
will continue to post stable operating and financial surpluses,
equivalent to an average of 9.7% of operating revenues and 10.1% of
total revenues respectively.

As a result of the cash financing surpluses the liquidity of Tuxpan
has also been strengthening, reaching a maximum of 3.0 times (x)
the cash to current liabilities, comparing favorably with B1
Mexican rated peers (0.9x). For 2019-20 Moody's expects the cash to
current liabilities ratio to average 3.2x, a strong metric among
all the Mexican rated municipalities.

Somewhat offsetting these improvements, the ratio of net direct and
indirect debt (NDID) to operating revenues measured 56% in 2018,
substantially well above the median of Mexican municipalities rated
at B1 (21%) and among the highest of any Moody's-rated Mexican
municipalities. In addition, the entity has approximately MXN 100
million (equivalent to 20% of operating revenue) of contingent
liabilities, primarily unsettled payments owed to supplier accrued
over several years, which Moody's does not include in the debt
metrics. Though Moody's recognizes that these off-balance sheet
liabilities are unlikely to materialize in the short term, they
could represent a potential pressure for the municipality's
liquidity in a context where the operating and financial balances
also deteriorates. While Moody's forecasts that Tuxpan's NDID will
decrease to 43% of operating revenue for 2019-20, as a result of
the quick amortization schedule of a public-private partnership
(PPP) to modernize the municipality's public lighting system, the
municipality's net debt burden will still be relatively high
compared to domestic peers.

In addition, Tuxpan's limited own source revenue, which averaged
21.5% of operating revenues from 2014 to 2018, is below the B1
Mexican rated peers (24.2%) and remain an ongoing credit challenge.
Though the municipality has been developing efforts to increase its
own source revenues collection, Moody's notes that the cadastral
values are low which inherently restricts the tax generation
potential from this source and is a factor that adds an additional
challenge for the municipality to improve its own source revenue
levels. Moody's expects that the own source revenues collection
will maintain a stable average of 22% in 2019-20.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook of Tuxpan's B1/Baa2.mx ratings reflects the
forecast that the municipality's debt burden will continue to be
elevated compared to other B1 Mexican rated peers. The stable
outlook also reflects Moody's expectation that the municipality
will record lower but still positive operating and financial
margins considering the expectations of lower federal transfers for
the Mexican regional and local governments in 2020 and Tuxpan's
higher dependence on federal transfers as a source of revenue.

RATIONALE FOR THE ENHANCED LOAN RATING

The upgrade of the rating to the Banorte enhanced loan for MXN 220
million reflects the upgrade in the issuer ratings as per Moody's
methodology. In Moody's opinion there have been no material changes
to the debt service coverage metrics.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

In Moody's assessment environmental considerations represent a
moderate risk given the municipality's exposure to extreme weather
events such as hurricanes and heavy rains. Nonetheless, these
considerations are not currently material to the municipality's
credit profile because mitigating factors limit credit impacts.
Mexican municipalities receive federal aid through a disaster fund
to cover a portion of infrastructure reconstruction following
natural disasters, which helps limit financial pressure. Social
considerations are not material to the municipality's credit
profile. The municipality presents a "low" degree of social
marginalization according to CONAPO, and this social profile limits
pressures in terms of infrastructure for public services. Finally,
in governance, Tuxpan has a relatively weak profile, similar to
other Mexican municipalities rated by Moody's at B level.

WHAT COULD CHANGE THE RATINGS UP/DOWN

If the municipality decreases its debt burden to similar levels to
those registered by other B1's Mexican rated peers (21% of
operating revenues), reduces its current contingent liabilities and
improves its own source revenue collection, the issuer ratings
would have upward pressure. Conversely, a larger than expected
deterioration in the operating and financial balances as well as a
decrease in liquidity could exert downward pressure on the
ratings.

In addition, given the link between the enhanced loan and the
credit quality of Tuxpan, an upgrade/downgrade of the issuer
ratings could exert upward/downward pressure on debt ratings for
the enhanced loan. Also, if debt service coverage metrics
improve/fall materially above/below Moody's expectations, the
ratings could face similar upward/downward pressure.

The methodologies used in these ratings were Regional and Local
Governments published in January 2018 and Enhanced Municipal and
State Loans in Mexico Methodology published in May 2019.



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

ONE ALLIANCE: A.M. Best Affirms B (Fair) Financial Strength Rating
------------------------------------------------------------------
AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term
ICR) to "bb+" from "bb" and affirmed the Financial Strength Rating
of B (Fair) of One Alliance Insurance Corporation (One Alliance)
(San Juan, Puerto Rico). The outlook of these Credit Ratings
(ratings) has been revised to stable from negative.

The ratings reflect One Alliance's balance sheet strength, which AM
Best categorizes as adequate, as well as its marginal operating
performance, limited business profile and marginal enterprise risk
management (ERM).

The upgrade of the Long-Term ICR is based on significant growth in
One Alliance's surplus in 2019, primarily driven by a capital
contribution provided by the company's new owners. The capital
infusion and anticipated on-going parental support mitigate AM
Best's previous concerns regarding the company's capital position.
Additionally, AM Best also has revised the outlooks to stable from
negative, largely driven by the company's improved underwriting
leverage measures (gross, ceded and net) driven by the
aforementioned capital infusion and demonstrated improved financial
flexibility.

One Alliance's balance sheet strength is reflective of its
strongest risk-adjusted capitalization, as measured by Best's
Capital Adequacy Ratio (BCAR), conservative investment portfolio
and new ownership commitment to support the company's growth. These
positive factors are offset partially by the company's considerable
catastrophe exposure and limited scale of operations.

AM Best categorizes One Alliance's operating performance as
marginal. The company reported underwriting loss in each of its
first four years of operations. However, each year, the company's
results have improved due to increased premium volume, as it tries
to reach the economy of scale. In 2019, operating performance was
impacted by adverse development on its Hurricane Maria claims,
affecting the company's combined ratio.

One Alliance's business profile is limited due to its geographical
concentration in Puerto Rico, which exposes results to
weather-related events and overall macro-economic conditions on the
island, as well as to regulatory and competitive market challenges.
AM Best assesses the company's ERM assessment as marginal, as its
risk management capabilities do not align with its risk profile.
Demonstrated weakness has been observed given the level of
catastrophe losses relative to prior reinsurance purchasing
decisions for the enterprise. While the losses associated with
Hurricane Maria were unprecedented in nature, the size of the
losses leads to a marginal assessment.  


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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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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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