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

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

          Friday, June 12, 2020, Vol. 21, No. 118

                           Headlines



A R G E N T I N A

ARGENTINA: Can Improve Debt Restructuring Offer, IMF Says
BUENOS AIRES: S&P Lowers Rating on 9.9% USD Bond Due 2021 to 'D'
VICENTIN SAIC: Argentina Seizes Firm in New 'Statist Vision'


B R A Z I L

AEGEA SANEAMENTO: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable
BANCO RCI: Moody's Cuts Global Local Curr. Deposit Rating to Ba2
ELDORADO BRASIL: Moody's Lowers CFR to B2, Outlook Stable
ELETROBRAS: Fitch Affirms BB- LongTerm IDRs, Outlook Negative
PETROLEO BRASILEIRO: Posts Record Fuel Exports Despite COVID-19



C A Y M A N   I S L A N D S

CFLD INVESTMENT: Moody's Rates New USD Senior Unsec. Notes 'Ba3'


E C U A D O R

ECUADOR: IDB OKs $280MM Loan for Transformation of Energy Grid


M E X I C O

MEXARREND SAPI: Fitch Lowers LT IDRs to B+, Outlook Negative
MEXICO: Central De Abasto Becomes COVID-19 Hotspot
MEXICO: To Sit Out Extension of OPEC+ Oil Output Cuts
UNIFIN FINANCIERA: Fitch Affirms BB LT IDR, Outlook Negative


P U E R T O   R I C O

EM POLICIA: Court Approves Disclosure Statement
EMPRESA LOCAL: Court Approves Disclosure Statement


X X X X X X X X

[*] LATAM: COVID-19 Exacerbates Drop in Exports From Region

                           - - - - -


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

ARGENTINA: Can Improve Debt Restructuring Offer, IMF Says
---------------------------------------------------------
Globalinsolvency.com, citing Financial Times, reports that the IMF
officials said Argentina can still improve its restructuring offer
on $65 billion of debt with foreign creditors as it continues
negotiations after slipping into default last month.

"There is still room for Argentina to increase payments to private
creditors," Julie Kozack, deputy director for the IMF's western
hemisphere department, told the Financial Times, according to
Globalinsolvency.com.

Ms. Kozack's comments come a day after the IMF released a two-page
statement on Argentina's revised restructuring proposal, which
calls for payments to begin in 2022 compared with 2023 previously,
among other improvements for bondholders, the report notes.

The IMF said the current terms would restore the sustainability of
the country's debt, but that there was not significant capacity to
raise the offer much further, the report adds.

                      About Argentina

Argentina is a country located mostly in the southern half of
South America.  It's capital is Buenos Aires. Alberto Angel
Fernandez is the current president of Argentina after winning the
October 2019 general election. He succeeded Mauricio Macri in the
position.

Argentina has the third largest economy in Latin America.  The
country's economy is an upper middle-income economy for fiscal
year 2019 according to the World Bank.  Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.

As reported by the Troubled Company Reporter - Latin America on
April 14, 2020, Fitch Ratings upgraded Argentina's Long-Term
Foreign Currency Issuer Default Rating to 'CC' from 'RD' and
Short-Term Foreign Currency IDR to 'C' from 'RD'.

The TCR-LA reported on April 13, 2020, that S&P Global Ratings
also lowered its long- and short-term foreign currency sovereign
credit ratings on Argentina to 'SD/SD' from 'CCC-/C'. S&P also
affirmed the local currency sovereign credit ratings at 'SD/SD'.
There is no outlook on 'SD' ratings.

On April 9, the TCR-LA reported that Moody's Investors Service
downgraded the Government of Argentina's foreign-currency and
local-currency long-term issuer and senior unsecured ratings to Ca
from Caa2.


BUENOS AIRES: S&P Lowers Rating on 9.9% USD Bond Due 2021 to 'D'
----------------------------------------------------------------
S&P Global Ratings lowered its issue-level rating on the province
of Buenos Aires' 9.95% dollar-denominated bond due 2021 to 'D' from
'CC' after it missed $494.5 principal and interest payment
corresponding to the first amortization of the bond. The province
is currently negotiating restructuring of its 11 foreign-law
international bonds. The province presented the exchange offer on
April 24, 2020, and extended it several times. The new deadline for
creditors to accept it is June 19, 2020. The province hasn't made
its foreign currency debt service payments after it presented the
restructuring offer. Next upcoming payment corresponds to $69
million interest payment on the global bond due 2027.

The province's following bonds are in default:

-- $898 million 9.95% notes due 2021;
-- $400 million 9.625% bond due 2028;
-- $10.6 million 4.0% medium term due 2020;
-- EUR95.4 million 4% medium term due 2020;
-- $480.4 million 4% bond due 2035; and
-- EUR577.4 million 4% bonds due 2035.

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

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

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating action.


  Ratings List

  Ratings Affirmed  
  
  Buenos Aires (Province of)
   Issuer Credit Rating           SD/--/NR
   Senior Unsecured               CC
   Senior Unsecured               D

  Downgraded  
                                  To    From
  Buenos Aires (Province of)
  Senior Unsecured
  US$ 899.476mil 9.95% due 2021    D     CC


VICENTIN SAIC: Argentina Seizes Firm in New 'Statist Vision'
------------------------------------------------------------
Jonathan Gilbert at Bloomberg News reports that Argentine President
Alberto Fernandez dipped into the play book of his deputy, Cristina
Fernandez de Kirchner, with a plan to seize crop trader Vicentin
SAIC, ringing alarm bells in the farming industry and among
investors in the country.

Fernandez's government will take control of Vicentin for the next
60 days as it seeks congressional approval to expropriate the
agricultural powerhouse, which filed for bankruptcy last year after
being caught out in currency swings, according to Bloomberg News.
Vicentin is a key player in a strategic industry, Fernandez added.

"This is a statist vision for the 21st century," Production
Minister Matias Kulfas said in an interview after the announcement.
The company wasn't notified, he said, Bloomberg News notes.

Under the plan, all of Vicentin's assets -- the crown jewels of
which are soy-processing plants that supply the world with meal for
animal feed and cooking oil -- will be placed in a trust managed by
the agriculture arm of state-run oil company YPF SA. Shares YPF
rose 14% in New York, Bloomberg News relates.

YPF Agro would then absorb Vicentin entirely, creating a state
commodities giant with major hands in shale drilling, fuel
dispensing and crop trading -- and even giving the government more
clout in the currency market, Kulfas said, Bloomberg News
discloses.

The move comes at a delicate time for Argentina, which is
negotiating a restructuring of $65 billion in overseas debt,
Bloomberg News says.  It also revives memories of the 2012
nationalization of YPF and other companies during the presidency of
Kirchner, and raises questions about how Argentina will lure
private-sector investments to lift its economy off the floor,
Bloomberg News notes.

"History shows us that state interventions, in grain trading in
particular, create severe distortions that end up deepening
problems instead of solving them," the Argentine Rural Society said
in a statement obtained by the news agency.

The main opposition coalition rejected the measure, calling it
"illegal and unconstitutional," Bloomberg News relays.

The government contends that the repercussions of Vicentin's
financial crisis on Argentina's farm industry were simply too big
to ignore, Bloomberg News notes.

"It is not in anyone's plans to be expropriating companies,"
President Fernandez told Radio Con Vos.  "I'm not ashamed to say
that I am a capitalist. But when capitalism became financial it
lost ethical content," he added.

The closely held firm is a major part of Argentina's $20
billion-a-year crop export business, accounting for 7.4 million
metric tons of oilseed-crush exports in 2019, Bloomberg News
relates.

"There's a certain belief, especially among independent and small
producers who have been quite damaged by Vicentin's failure, that
the company needed to be saved in some way," said Juan Cruz Diaz,
director of political consulting firm Cefeidas Group in Buenos
Aires, Bloomberg News notes.

But to many observers, the nationalization points to another issue:
Who exactly is governing Argentina? Fernandez, who's far from a
free-marketeer but viewed as a moderate, or his deputy, Kirchner, a
figurehead for fervent supporters of Latin American leftism and
nationalism, Bloomberg News discloses.

Vicentin's fate has been closely tied to politics, Bloomberg News
says.  The company expanded under the presidency of market-friendly
Mauricio Macri and then fell into disarray when Fernandez emerged
as his likely replacement. Gabriel Delgado, an agriculture
secretary under Kirchner, will lead the government's intervention,
Bloomberg News relates.

The company defaulted on about $1.5 billion of debt last year,
Bloomberg News notes.  A court in Santa Fe province, where the
company is headquartered, has been overseeing a bankruptcy in a
procedure that's similar to Chapter 11 in the U.S, Bloomberg News
says.

A big chunk of Vicentin's debt is owed to state-run Banco Nacion.
But the expropriation plan was still a surprise to company
executives, who've been in talks with existing partner Glencore Plc
and other companies, a spokesman said, Bloomberg News notes.

"The chosen path fills us with uncertainty and concern," the
company said in a statement obtained by the news agency.

Switzerland-based Glencore has a joint venture with Vicentin called
Renova, which includes one of the world's biggest soy-crushing
plants, Bloomberg News relates.  Fernandez said it was too soon to
say how a new state partnership with Glencore would work, Bloomberg
News notes.

Argentina is the largest exporter of soy meal for animal feed and
soy cooking oil, and in recent years, Vicentin has fended off
multinationals to have the top share of those shipments, Bloomberg
News adds.




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

AEGEA SANEAMENTO: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable
------------------------------------------------------------------
Fitch Ratings affirmed Aegea Saneamento e Participacoes S.A.'s
Long-Term Foreign Currency and Local Currency Issuer Default
Ratings at 'BB' and National Long-Term Rating at 'AA(bra)'. The
Rating Outlooks are Negative for the FC IDR and Stable for the LC
IDR and the NLTR. Fitch also affirmed the NLTRs of Aegea
subsidiaries Aguas Guariroba S.A., Prolagos S.A. - Concessionaria
de Servicos Publicos de Agua e Esgoto, Nascentes do Xingu
Participacoes e Administracao S.A. and Aguas de Teresina Saneamento
SPE S.A. at 'AA(bra)'with Stable Outlooks.

The rating action reflects Fitch's view that Aegea will be able to
preserve its consolidated credit profile even in the face of the
potential negative impact of the coronavirus pandemic on its billed
volumes and delinquency ratios in 2020. The agency's expectation is
that growth in the volume billed in the residential segment will
offset the reduction in the other customer segments, with limited
impact on the group's operating cash generation. Fitch expects the
company to manage capex and dividends during 2020 so as not to
further pressure its expected negative FCF.

The analysis also incorporates the expectation that Aegea will
maintain its consolidated net financial leverage at manageable
levels during the next few years while maintaining an adequate
liquidity profile and lengthened debt maturity schedule, supported
by its proven financial flexibility. The ratings are limited by the
expectation of material negative FCF before dividends due to its
growth strategy, which demands significant capex. Nevertheless,
Fitch assumes that the company will maintain financial discipline
in the event of approval of a new regulatory environment that may
allow for important growth opportunities.

The ratings of Aegea and its subsidiaries are supported by the low
business risk inherent in the water/wastewater utility sector in
Brazil, with the operational subsidiaries benefiting from an almost
monopolistic position in their concession areas, resulting in
highly predictable and resilient demand. Fitch rates Aegea based on
its consolidated credit profile, given that the holding company
guarantees most of the subsidiaries' debt with cross-acceleration
clauses in the event of default at Aegea. The company's strong
consolidated credit profile continues to be supported by the
operational and financial performance of the two main subsidiaries,
Prolagos and Guariroba. The assessment incorporates the continued
development of recent acquisitions that should improve the
company's business profile, with diversification of significant
operations. Fitch believes this increased diversification will be
positive as it dilutes operational, regulatory, hydrologic and
political risks in the group.

The Negative Outlook for the FC IDR follows Brazil's Sovereign
Outlook revision to Negative from Stable. The Stable Outlook for
the LC IDR and NLTR reflects Fitch's expectations that the
water/wastewater industry will maintain solid fundamentals and that
Aegea is likely to sustaining its strong consolidated credit
metrics during the next three years

KEY RATING DRIVERS

Reduced Industry and Business Risk: Aegea's credit profile benefits
from resilient demand, even amid distressed economic environments,
which should mitigate the coronavirus pandemic's negative effect on
its operations. The projected moderately lower volume billed to
commercial and industrial clients should be offset by marginal
growth from residential consumers, resulting in stable volumes in
2020. Aegea benefits from lower average exposure to industrial and
commercial clients as compared with industry peers. Fitch believes
tariffs in Aegea's main concessions are sufficient to sustain the
economic and financial balance based on concession agreements and
to support its capex-intensive operations.

Manageable Leverage: Fitch believes Aegea will be able to manage
its net leverage on a consolidated basis sustainably below 3.5x,
despite peaking at 3.6x in 2020 according to its methodology. Aegea
has the challenge of continuously developing its cash flow from
operations so as to sustain its financial profile despite an
expected increase in capex and dividend distributions. Fitch's
forecast considers that relevant acquisitions should be supported
by capital injections to sustain its financial structure. In the
LTM ended March 31, 2020, consolidated gross and net leverage were
4.1x and 3.2x, respectively.

Capex Pressures Cash Flow: Fitch expects annual consolidated FCF to
remain negative at approximately BRL437 million on average in
2020-2022, pressured by capex and dividend distributions. The
agency assumed stable total volumes billed during 2020 and average
growth of 7.6% for water and 11.7% for sewage during 2021-2023.
Tariff increases in line with Fitch's inflation estimates should
continue to support expansion in consolidated CFFO and mitigate FCF
pressure. As per Fitch' projections CFFO should total BRL401
million in 2020, despite moderate working capital demand, and
increase to BRL830 million by 2022. During the LTM ended March 31,
2020, CFFO was BRL322 million, which resulted in negative FCF of
BRL575 million.

High Operating Margins: As per Fitch's projections, Aegea's
consolidated financial profile will continue to register high
operating margins, particularly at its main subsidiaries, Prolagos
and Guariroba. Consolidated EBITDA margins should gradually
increase to 58% by 2022, benefiting from increases in scale and
efficiency improvements as Aegea develops recently incorporated
operations in addition to its low-cost structure as compared with
peers. Fitch estimates consolidated EBITDA at BRL1.2 billion in
2020 (55% margin) and BRL1.6 billion by 2022, supported by earnings
from the cities of Manaus and Teresina. During the LTM ended March
31, 2020, EBITDA and the EBITDA margin were BRL1.2 billion million
and 56%, respectively.

Manageable Debt at the Holding Level: Fitch considers that the debt
at Aegea level is manageable due to the expected increase in
dividends received and strong financial flexibility. The base case
scenario expects the holding company to receive BRL367 million in
dividends in 2020 and BR672 million in 2021. Up to 2019 the two
main sources of dividends were Guariroba and Prolagos, but starting
in 2020 there will be higher contributions from a more diversified
base of subsidiaries. Fitch expects a minimum debt service coverage
ratio of 1.3x (excluding the cash position) until 2023, with 1.6x
in 2020.

Manageable Political Risk: The company's water/wastewater
operations are supported by concession contracts providing a
regulatory framework for the group's activities. There is no
ring-fencing approach against political interference by municipal
governments that could jeopardize the operational and financial
performance of one or more concessionaries, despite the diversified
concession-granting powers of subsidiaries. Positively, Aegea's
operations are subject to different regulatory agencies, which
implies risk dilution. The favorable record of concession agreement
enforceability for the two main subsidiaries in recent years and
the group's satisfactory capacity to interact with various public
agents and regulators are important considerations for the
analysis.

Possible Regulatory Changes: Fitch assumes that Aegea will maintain
financial discipline in the face of potential growth opportunities
in the medium term should changes in the regulatory environment be
approved. Discussions about regulatory guidelines for national
water/wastewater should facilitate greater participation by private
companies and enhance the industry's investment capacity. Private
participants account for around 6% of the industry's market share.
Fitch believes private growth would occur mainly at the expense of
highly inefficient state-owned companies or local municipality
operators and privatizations

DERIVATION SUMMARY

Aegea's credit profile benefits from diversification of concessions
within Brazil. Companhia de Saneamento Basico do Estado de Sao
Paulo (Sabesp; LC IDR BB/Stable) operates exclusively in the state
of Sao Paulo, which brings higher operational and regulatory risks.
Aegea and Sabesp have strong EBITDA margins, although Aegea has
high indebtedness at the holding company level and higher
consolidated leverage. Sabesp carries higher political risk, since
it is state owned, and high FX debt exposure. Sabesp is the
country's largest water/wastewater utility, and benefits from
economies of scale. Transmissora Alianca de Energia Eletrica S.A.
(BB/Negative), a power transmission company, has a better credit
profile than Aegea. This is due to its more predictable CFFO,
strong financial profile and lower regulatory risk.

Aegea's activity in Brazil is influenced by the country's operating
environment, which is subject to volatile macroeconomic conditions
and mostly explains the difference in ratings from Wessex Water
Limited (WWL; BBB-/Stable), a holding company with water operations
in England. WWL subsidiaries' operating position are strong
compared with rated peers' in the UK water sector due to a
long-standing record of robust operational and regulatory
performance

KEY ASSUMPTIONS

  -- Stable total volume billed in 2020 and annual average growth
of 7.6% for water and 11.7% for sewage between 2021 and2023,
supported mainly by expansion of infrastructure on recently
incorporated operations;

  -- Stable tariff level in 2020 given business mix with a higher
share of residential customers and tariffs increasing thereafter in
line with Fitch estimates for inflation. Additional tariff
increases for Guariroba (3.6%) and Prolagos (5.5%) in 2021 in line
with latest tariff revision;

  -- Average annual capex of BRL761 million in 2020-2022;

  -- Average annual dividend distributions of BRL330 million in the
next three years.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

An upgrade in Local Currency IDR and National Scale Rating may
occur if consolidated net debt/EBITDA falls sustainably below 2.5x,
or EBITDA margins and CFFO improve above Fitch's expectations,
based on operating performance enhancement at recently incorporated
subsidiaries;

An upgrade of the Foreign Currency IDR is unlikely. A revision of
the Negative Outlook to Stable should occur if the same occurs with
Brazil's Country Ceiling.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

  -- Consolidated net leverage sustainably trending to above 3.5x;

  -- Deterioration of the company's liquidity profile on a
     consolidated and standalone basis and/or weaker financial
     flexibility, mainly at the holding level;

  -- Significant debt-financed acquisitions.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Proven Financial Flexibility: Fitch expects Aegea to benefit from
demonstrated financial flexibility and adequate liquidity profiles
in the next three years, as it implements significant capex and
distributes meaningful dividends. Aegea's proven access to local
and international credit markets is favorable and has supported its
lengthened debt maturity schedule that also benefits its liquidity
ratios.

Aegea's consolidated cash balance of BRL1.1 billion as of March 31,
2020 improved to BRL1.4 billion by the end of April 2020 (on a
preliminary basis) after BR252 million of debt issuance in order to
strengthen liquidity during 2020 and partially support its capex.
The company issued an additional BRL410 million in May 2020 and
Fitch estimates a further BRL150 million of debt issuance during
the second semester of 2020. At the end of March 2020, the company
reported a comfortable debt amortization profile with short-term
obligations of BRL617 million, which includes payment obligations
with acquisition, resulting in cash coverage of 1.8x.

In the same period total debt was BRL5.1 billion on a consolidated
basis, with BRL2.1 billion at the holding level. Debt consisted
mainly of bond issuance (BRL908 million, adjusted for hedging
derivatives and guaranteed by the holding level), debentures
(BRL2.4 billion) and Banco Nacional de Desenvolvimento Economico e
Social and Caixa Economica Federal issuance (BRL461 million). The
company's debt profile has a 4.6-year average term, with hedged FX
exposure and 79% of its coupon linked with the basic interest rate
and average coupon of 6.2%.

SUMMARY OF FINANCIAL ADJUSTMENTS

  -- Long-term financial investments considered as cash.

  -- Construction revenues are excluded from net revenues.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.

ESG CONSIDERATIONS

The highest level of ESG credit relevance, if present, is a score
of 3. This means ESG issues are credit-neutral or have only a
minimal credit impact on the entity(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).

Aegea Saneamento e Participacoes S.A.

  - LT IDR BB; Affirmed

  - LC LT IDR BB; Affirmed

  - Natl LT AA(bra); Affirmed

Aguas de Teresina Saneamento SPE S.A.

  - Natl LT AA(bra); Affirmed

Prolagos S.A. - Concessionaria de Servicos Publicos de Agua e
Esgoto

  - Natl LT AA(bra); Affirmed

  - Senior secured; Natl LT AA(bra); Affirmed

  - Senior unsecured; Natl LT AA(bra); Affirmed

Aegea Finance S.a r.l.      

  - Senior unsecured; LT BB; Affirmed

Aguas Guariroba S.A.

  - Natl LT AA(bra); Affirmed

  - Senior secured; Natl LT AA(bra); Affirmed

  - Senior unsecured; Natl LT AA(bra); Affirmed

Nascentes do Xingu Participacoes e Administracao S.A.

  - Natl LT AA(bra); Affirmed
  
  - Senior unsecured; Natl LT AA(bra); Affirmed


BANCO RCI: Moody's Cuts Global Local Curr. Deposit Rating to Ba2
----------------------------------------------------------------
Moody's Investors Service downgraded Banco RCI Brasil S.A.'s long
term global local currency deposit rating to Ba2, from Ba1, as well
its respectively long- and short-term Counterparty Risk Assessments
(CRA) to Ba1(cr)/NP(cr), from Baa3(cr)/Prime-3(cr) and its long-
and short-term local currency Counterparty Risk Ratings (CRR) to
Ba1/NP, from Baa3/Prime-3, respectively. The bank's adjusted
baseline credit assessment was also downgraded to ba2, from ba1. On
the Brazilian national scale, Moody's downgraded Banco RCI's
long-term deposit ratings to Aa2.br, from Aaa.br. All other ratings
and assessment assigned to Banco RCI remain unchanged.

The rating action concludes the review for downgrade that was
initiated on April 8, 2020, and that was prompted by similar
actions taken on the ratings of its immediate parent, RCI Banque
(long-term deposit and senior unsecured debt ratings to Baa2).

The ratings downgrade also reflects Moody's view that the Brazilian
economy will contract in 2020 as a result of the coronavirus
outbreak, which will likely have a direct negative impact on Banco
RCI's and other Brazilian banks' asset quality and profitability.
Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety.

Banco RCI's Ba2 local currency deposit rating and ba2 adjusted BCA
incorporates one-notch of uplift from its BCA of ba3 to reflect its
assessment of a high likelihood of support from its parent, RCI
Banque, based on the strategic focus shared between the parent and
the bank.

The following ratings and assessments of Banco RCI were
downgraded:

  - Long-term global local-currency deposit rating to Ba2, from
Ba1, outlook changed to stable from Ratings Under Review

  - Long-term counterparty risk assessment to Ba1(cr), from
Baa3(cr)

  - Short-term counterparty risk assessment to NP(cr), from
P-3(cr)

  - Long-term global local-currency counterparty risk rating to
Ba1, from Baa3

  - Short-term global local-currency counterparty risk rating to
NP, from P-3

  - Long-term Brazilian national scale deposit rating to Aa2.br,
from Aaa.br

  - Adjusted baseline credit assessment of ba2, from ba1

Outlook Actions for Banco RCI Brasil S.A:

  - Outlook changed to stable, from Rating Under Review

RATINGS RATIONALE

Moody's noted that RCI Brasil's deposit ratings reflect its role as
a captive financing arm, being solely engaged in financing sales of
vehicles produced by both Renault do Brasil S.A. and Nissan do
Brasil Automóveis Ltda. As such, the bank's business strategy and
performance are closely tied to those of its auto manufacturing
companies.

The bank's unchanged baseline credit assessment (BCA) at ba3
reflects the bank's historically better-than-market' asset quality,
supported by adequate credit risk management procedures. Loan loss
reserve remains high, providing ample coverage to problem loans.
Nevertheless, Moody's expects that the coronavirus outbreak will
have a negative impact on Banco RCI's asset quality as business
closure and pullback in local consumption results in economic
deceleration, car sales decline and higher unemployment. Loan
payment deferrals may also mask asset quality metrics over the
medium-term.

In the meantime, lower business volumes, combined with higher
credit and funding costs will weigh on RCI Brasil's profitability,
with revenues already limited by its monoline business model. In
March 2020, the bank's net income to tangible asset remained stable
at around 1.9%, primarily supported by higher income from loans and
lower operating and credit costs, which offset lower results with
leasing. The bank's results in Q1 reflected the recovering activity
early in the year and that has been cut short by the sudden stop in
the economy.

Similar to peers, the bank's wholesale and highly confidence
sensitive funding base remains a key rating constraint, together
with the low stock of liquid assets. About 44% of the bank's funds
are sourced from related parties, mostly in the form of interbank
deposits, resulting in a fairly concentrated funding profile,
although management is working to expand its investor base.

Moody's notes that the bank's capital base remains adequate to
provide additional protection against loan losses. Banco Santander
(Brasil) S.A. (SANB, Ba1 stable ba2) owns 39.9% of RCI Brasil's
shares. Therefore, RCI Brasil's capital ratios are consolidated
into SANB's prudential conglomerate for regulatory purposes,
although the bank's capital position is individually overseen by
both regulators and its controlling shareholders. Moody's expects
that a slowdown in loan origination over the next months and
temporary regulatory measures, including the capping of dividends
to a maximum statutory 25% and lowering of capital conservation
buffer requirements, will help preserve the bank's capital in the
face of coronavirus outbreak' effects on asset quality and
profitability.

Moody's regards the coronavirus pandemic as a social risk under its
ESG framework, given the substantial implications for public health
and safety. The rating actions reflect the impact on Banco RCI of
the severity of the shock, and Moody's view of its ability to
withstand it under its current assumptions.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

An upgrade in Banco RCI's supported ratings would occur following
an upgrade in RCI Banque ratings. Combined to this, a scenario of
stronger asset-quality indicators and profitability could also
result in upward rating pressure on Banco RCI's standalone BCA.

The bank's ratings could also face negative pressures as a result
of material deterioration of asset quality and profitability,
arising from higher provisions and increase in funding costs. A
consistent decline in profitability could hurt the bank's ability
to replenish capital through earnings, which could be negative in
the long run. A downgrade of the parent's ratings by multiple
notches could be negative for Banco RCI's ratings

METHODOLOGY USED

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

Banco RCI is 60.1% owned by RCI Banque in France and 39.9% by Banco
Santander (Brasil) S.A. It is a credit-oriented monoline bank
created in 2000 to finance the sales of vehicles produced by
Renault and Nissan in Brasil. Headquartered in Curitiba, it
presented equity of BRL 1.4 billion and loans of BRL 12.2 billion
in March 2020.


ELDORADO BRASIL: Moody's Lowers CFR to B2, Outlook Stable
---------------------------------------------------------
Moody's Investors Service downgraded to B2 from B1 the corporate
family rating of Eldorado Brasil Celulose S.A. The outlook is
stable.

The downgrade to B2 reflects Eldorado's high refinancing risk at a
time of deterioration in financial markets conditions. As of
December 2019, Eldorado had about BRL5.1 billion ($1.1 billion), or
75% of its total debt, due until the end of 2021. Part of this
amount has already been refinanced and is represented by
export-related lines that are typically renewed at maturity, but
also by its $350 million senior unsecured notes due in June 2021.

Downgrades:

Issuer: Eldorado Brasil Celulose S.A.

Corporate Family Rating, Downgraded to B2 from B1

Outlook Actions:

Issuer: Eldorado Brasil Celulose S.A.

Outlook, Remains Stable

RATINGS RATIONALE

The B2 rating continues to incorporate the company's strong
operating performance and low-cost profile, which places the
company in a more resilient position to withstand challenges in
this operating environment. Eldorado has the lowest-cost operation
in the global pulp industry and has been able to maintain average
EBITDA margins of around 58% from 2015 through 2019.

Eldorado's unbalanced capital structure with a high concentration
of debt in the short-term is a major constraint for the rating, as
well as the dispute between the company's shareholders (J&F
Investimentos S.A. and CA Investment S.A./Paper Excellence), as it
may bring delays in strategic decisions for Eldorado until the
arbitration process is concluded. Moody's expects Eldorado will
continue to amortize debt related to the Tres Lagoas mill
construction at maturity during 2020 and 2021, while the company
will continue to refinance its bank debt, mostly represented by
trade finance lines. However, more significant changes in the
capital structure will only be possible after the conclusion of the
arbitration.

The rating is also constrained by Eldorado's susceptibility to
event risk driven by its single-plant nature and limited
operational diversity. Moody's believes that Eldorado's ability to
control input costs through its vertically integrated production
process partially compensates for the risk of operating primarily
in a single commodity product and in a single location.

The stable outlook reflects its expectation that, despite the tight
liquidity position and enhanced refinancing risk, Eldorado's cash
flows should improve in 2020 compared to 2019, as a result of
steady demand, FX depreciation and lower capital spending, as well
as gradual improvements in prices during 2020.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING

The rating could suffer further negative pressure if Eldorado is
not able to roll over debt maturities of 2020-21, in particular the
2021 senior unsecured notes, with further deterioration of its
liquidity profile. A significant deterioration in the company's
operating performance, with negative free cash flow generation, and
an increase in debt levels, with leverage, measured as total
adjusted debt to EBITDA, trending towards 5.0x or above, and
interest coverage, measured as adjusted EBITDA to interest
expenses, remaining below 3.5x for a prolonged period, would exert
negative pressure on the rating or outlook.

An upward rating movement would require Eldorado to improve its
liquidity profile and capital structure. In addition, an upgrade
would be dependent on the maintenance of strong operating
performance and current credit metrics.

The principal methodology used in this rating was Paper and Forest
Products Industry published in October 2018.

Headquartered in Sao Paulo, Brasil and with operations in Tres
Lagoas, Mato Grosso do Sul, Eldorado Brasil is a key player in the
global pulp markets, with a nominal capacity of 1.5 million tons of
hardwood pulp and very competitive cash cost, supported by an
extensive forest base of more than 230,000 hectares in the state of
Mato Grosso do Sul. Eldorado is owned by J&F Investimentos S.A.
(50.59%) and CA Investment (Brazil) SA, subsidiary of Paper
Excellence. Eldorado started operations in December 2012 and
reported revenues of BRL 4.2 billion in 2019.


ELETROBRAS: Fitch Affirms BB- LongTerm IDRs, Outlook Negative
-------------------------------------------------------------
Fitch Ratings has affirmed Centrais Eletricas Brasileiras S.A.'s
(Eletrobras) Long-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) at 'BB-' and Long-Term National Scale Rating at
'AA(bra)'. Fitch also affirmed Eletrobras' senior unsecured bond
ratings at 'BB-'. The Outlooks are Negative for the IDRs and Stable
for the National Scale Rating.

Per Fitch's Government Related Entity Criteria (GRE Criteria),
Eletrobras' IDRs are equalized with Brazil's sovereign rating
(BB-/Negative), as the company's linkage with the country is
considered strong and the government has a strong to very strong
incentive to provide support to the company.

Fitch also notes the country's 51% ownership of the company's
voting shares. The federal government also has broad control over
Eletrobras' operational, strategic and financing activities and
guarantees 14% of Eletrobras' consolidated on-balance-sheet debt.
Fitch's assessment of the government's incentive to support
Eletrobras is based on the strong socio-political implications that
a default may have on the company's ability to provide quality
service. The Brazilian power system relies on Eletrobras' asset
portfolio of generation plants and transmission lines as the
largest player in the sector. In terms of financial implications,
Fitch considers that the effect of a default on the availability
and cost of domestic or foreign financing options for the sovereign
and/or other government subsidiaries would be very strong.

The government's intention to privatize Eletrobras is not
incorporated in this analysis, as it is an uncertain event. If
Eletrobras becomes a private entity, Fitch will likely decouple the
rating from the sovereign and analyze the company solely based on
its Standalone Credit Profile (SCP), which currently is consistent
with the 'b' rating, due to pressured FCF generation and high
adjusted leverage, despite low business risk and its significant
size within the Brazilian power sector. Management's initiatives to
reduce costs and sell assets to improve the group's capital
structure are positive and have been improving its overall credit
profile.

The Negative Outlook for the IDRs reflects the same Outlook for
Brazil's sovereign rating. Eletrobras' exposure to coronavirus
pandemic is reduced, since its operations are mainly through
contracts in the regulated market in generation and transmission
segments in Brazil and Fitch does not expect material negative
impacts on these businesses for the group.

KEY RATING DRIVERS

Strong Linkage to the Sovereign: Eletrobras' credit profile
benefits from the strong linkage between the company and the
country, which is one of the pillars for their ratings
equalization. Brazil controls Eletrobras through its 51% stake in
the issuer's voting shares and plays an important role in
Eletrobras' operational, strategic and financing activities. The
guarantees provided to 14% of Eletrobras' debt reinforce the
linkage along with the capital injections that totaled BRL4.0
billion in 2019. Federal banks are counterparties of a significant
portion of the group's on-balance-sheet debt, adding to the
strength of the linkage.

Strong to Very Strong Incentive to Support: Fitch considers that
Eletrobras' strategic importance as the largest electricity
generation and transmission company in Brazil is an incentive for
the government to support the group if necessary. Eletrobras group
concentrates 35% of the country's installed generation capacity and
45% of transmission lines above 230Kv as of March 2020. Its size
and presence in several significant energy operational assets in
Brazil make it strategically important to the country's economy and
development. Furthermore, the agency evaluates that an event of
default at Eletrobras would have a very strong negative impact for
the sovereign and other GRE on the availability and cost of
funding.

Improving SCP: Eletrobras has improved its SCP after completing the
sale of its six energy distribution companies (DisCos) concluded in
April 2019. Fitch expects EBITDA of around BRL9.0 billion in 2020,
similar to 2019, but meaningfully higher than the around BRL4.5
billion accounted before the sale. Cash inflows of around BRL4.0
billion per year from compensation revenues of the transmission
concessions renewed early in 2013 will also boost the group's
EBITDA until 2025. In the LTM ended March 31, 2020, adjusted EBITDA
amounted to BRL9.1 billion, benefiting from this compensation
revenue and from the absence of consolidation of the DisCos. The
SCP is still pressured by the expected negative FCF due to
aggressive capex and high leverage.

Privatization Potentially Positive to SCP: Fitch considers
Eletrobras' new SCP after privatization, if it occurs, would be
linked to the expectation of potential cash flow generation,
leverage metrics and financial flexibility. The expected cash
inflow from the capitalization would not benefit Eletrobras' credit
profile immediately, as it would be mainly directed to the federal
government. However, the privatization should allow the company to
obtain higher sales prices associated with part of its generation
assets and more flexibility to manage its costs. Fitch estimates an
EBITDA increase of around 30%, or an additional BRL3.0 billion per
year, just from the increase in sales prices.

Capex and Dividends Pressure FCF: Eletrobras' strategic plan for
2020-2024 incorporates an aggressive investment plan for BRL30.9
billion in capex, which will pressure FCF over the next few years.
Despite robust cash flow from operations (CFFO) of around BRL4.0
billion to BRL5.0 billion expected in the next two years, the
strong capex program will keep FCF negative by around BRL2.8
billion in 2020 and BRL3.0 billion on average during the strategic
plan period. The agency assumes dividends distribution of BRL2.5
billion in 2020 and 25% dividend payout going forward. The base
case projections also incorporate BRL14.0 billion from the
construction of the nuclear plant, Angra 3. Eletrobras' plan is to
have a partner to finance at least part of the capex of this
project, but timing for this initiative is uncertain.

High Leverage: Fitch expects Eletrobras' adjusted leverage ratios
to remain high, with net adjusted debt/adjusted EBITDA of 6.5x-7.5x
until 2023. As a mitigating factor, Eletrobras' consolidated risk
profile benefits from an extended debt maturity schedule. For the
LTM ended Mar. 31, 2020, total adjusted debt/adjusted EBITDA and
net adjusted debt/adjusted EBITDA were 8.0x and 6.8x respectively.
Total adjusted debt includes the sectoral fund Reserva Global de
Reversao (RGR) of BRL3.3 billion and off-balance-sheet debt of
BRL30.7 billion related to guarantees provided to nonconsolidated
subsidiaries. Excluding these debts, net leverage would reach a
more conservative level at 3.9x.

DERIVATION SUMMARY

Eletrobras group's 'BB-' IDR reflects the Brazilian sovereign's
'BB-' rating, given the company's strong linkage with the
government and its high importance to the country. Compared with
other state-owned electric utility companies in Latin America,
Eletrobras' IDRs are lower than the Mexican company Comission
Federal de Electricidad (CFE; BBB-/Negative), and the Colombian
group Interconexion Electrica S.A. E.S.P (ISA; BBB+/Negative).
CFE's ratings are fully supported by the Mexican sovereign rating
of 'BBB-'/Outlook Negative due to its monopoly position in the
country. ISA's ratings are higher than the Colombian sovereign
'BBB-'/Outlook Negative rating as the linkage with the Colombian
government is considered moderate and the company benefits from a
low business risk profile and strong geographic and business
diversification of its revenues. Along with the high predictability
of CFFO, these translate into a robust financial profile.

Eletrobras' 'b' SCP is five notches below the 'BBB-' Local Currency
IDR of the Brazilian generation company Engie Brasil Energia S.A.
and the Brazilian transmission groups Alupar Investmento S.A. and
Transmissora Alianca de Energia Eletrica S.A. due to its worse
operating performance and weaker financial profile.

KEY ASSUMPTIONS

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

  -- Receipt of BRL39.2 billion from indemnity for the transmission
concession renewal in monthly installments from December 2020 to
July 2025 (including the Ke component of the cost of equity from
2021 on);

  -- Average annual capex (not including equity contributions) of
BRL6.2 billion from 2020 to 2023;

  -- Dividends of BRL2.5 billion in 2020 and of 25% of net profit
in the subsequent years;

  -- Development of Angra 3 project without private partner.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

  -- Positive rating action on the sovereign.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

  -- Negative rating action on the sovereign;

  -- Perception of a weakening of Brazilian government support;

  -- Significant deterioration in the company's SCP.

LIQUIDITY AND DEBT STRUCTURE

Sound Liquidity Profile: Eletrobras has historically maintained a
strong liquidity position and counts on the potential support from
the sovereign. The company's robust consolidated cash and
marketable securities of BRL12.3 billion were above its short-term
debt of BRL7.9 billion at the end of the first quarter of 2020,
which is important to meet the expected negative FCF. It was
strengthened by the BRL3.7 billion raised through a capital
increase concluded in December 2019, and by the USD1.25 billion in
bonds issued in February 2020, which partially refinanced a bond
with the same amount due in January 2021, lengthening the group's
debt maturity schedule.

The group's cash position benefits from revenues from its
transmission line concessions renewed in 2013, which should
represent a cash inflow of BRL4.0 billion in 2020. The group still
had a balance of BRL39 billion to be received until 2025 at the end
of the first quarter of 2020.

Eletrobras group's total adjusted debt of BRL81.6 billion at the
end of March 2020 was mainly concentrated in Brazilian state-owned
entities. Federal banks hold 29% of the consolidated
on-balance-sheet debt, with Petrobras responsible for 16% and RGR
7%, which strengthens the linkage with the government. Foreign
currency debt comprises Eurobonds and loans with international
development banks, such as Corporacion Andino de Fomento, Banco
Interamericano de Desenvolvimento and Kreditanstalt fur
Wiederaufbau, which represent around 23% of the group's debt. The
Brazilian government provides guarantees in the amount of BRL7.2
billion, representing around 14% of total consolidated debt.

ESG CONSIDERATIONS

Fitch changed Eletrobras' Environmental, Social and Governance
(ESG) relevance score for Financial Transparency to '3' from '4',
as the previous score was related to the quality of financial
disclosure and the track record of delays in financial reports in
the past. Fitch understands that the company has improved
disclosure in its financial reports to investors and has met
mandatory deadlines in the last five years, which supported the
revision of the score for this factor.

Eletrobras has an ESG Relevance Score of '4' for Governance
Structure due to ownership concentration, as a majority
government-owned entity and due to the inherent governance risks,
that arise with a dominant state shareholder.

Except for the matters discussed above, the highest level of ESG
credit relevance, if present, is a score of 3 - ESG issues are
credit neutral or have only a minimal credit impact on the
entity(ies), either due to their nature or the way in which they
are being managed by the entity(ies).


PETROLEO BRASILEIRO: Posts Record Fuel Exports Despite COVID-19
---------------------------------------------------------------
Outlook India reports that Brazilian oil giant Petroleo Brasileiro
S.A. (Petrobras) said that it has exported a record 1.11 million
tonnes of fuel oil in May, a massive 231 per cent higher than the
volume exported in the same month last year, despite the COVID-19
crisis.

EFE News reported that the record fuel exports came despite the
crisis in the sector due to low prices and reduction in demand due
to the pandemic, according to Outlook India.

In a statement, the oil giant said the volume of oil export in May
was 10 per cent more than the February figures before the pandemic
led to the suspension of economic activities across the world, the
report relays.

"The record for exports occurs in a challenging period of the world
economy with a reduction in global demand for oil and oil products
caused by the pandemic," it said in the statement obtained by the
news agency.

"The strategy of diversifying the destinations of fuel oil exports
is effective in capturing greater participation in the foreign
market," it said, the report relates.

The increase in the exports came after the agreement between the
OPEC members - the organization of which Brazil is not a member -
to reduce production and adjust it to the falling global demand,
the report discloses.

The company said it was able to increase its participation in the
global market partly due to the enforcement of new global
specifications for marine fuels that reduced the limit of sulfur
content in crude oil from 3.5 per cent to 0.5 per cent, the report
relates.

The modification has generated a unique opportunity for Petrobras,
which produces petroleum and fuel oil with low sulfur content, the
report notes.

According to the Brazilian state oil company, whose shares are
traded on the Sao Paulo, New York, and Madrid stock exchanges, the
record of exports also reflects the measure adopted by the firm to
prioritize exploration and production areas more, the report says.

The management of the firm announced in May that despite the
historic crisis in the sector due to the steep decline in the
global demand and fuel oil prices, it maintained its goal of ending
2020 with an average production of 2.7 million barrels per day, the
report discloses.

According to its five-year plan, Petrobras proposes to up its oil
and natural gas production in Brazil up to 2.7 million BPD in 2020,
2.9 million in 2021, 3.1 million in 2022, 3.3 million in 2023 and
3.5 million in 2024, the report relays.

To manage the fall in demand and global oversupply, Petrobras
suspended its operations across 62 of its maritime platforms in
deep water to reduce its production of around 200,000 BPD in April.
But in May it increased its production, the report adds.

                             About Petrobras

Petroleo Brasileiro S.A. or Petrobras (in English, Brazilian
Petroleum Corporation - Petrobras) is a semi-public Brazilian
multinational corporation in the petroleum industry headquartered
in Rio de Janeiro, Brazil.  Petrobras control significant oil and
energy assets in 16 countries in Africa, the Americas, Europe and
Asia.  But, Brazil represents majority of its production.

The Brazilian government directly owns 54% of Petrobras' common
shares with voting rights, while the Brazilian Development Bank and
Brazil's Sovereign Wealth Fund (Fundo Soberano) each control 5%,
bringing the State's direct and indirect ownership to 64%.

A corruption scandal was uncovered in 2014 that involved
Petrobras.

The scandal related to money laundering that involved Petrobras
executives.  The executives were alleged to get received kickbacks
from overpriced contracts, to the tune of about $3 billion in
total.

Moody's Investors Service affirmed the 'Ba2' long term foreign
currency credit rating of Petrobras on August 23, 2019.  Outlook is
stable.  S&P Global Ratings revised outlook on Petrobras to stable
and affirmed 'BB-' foreign currency and local currency credit
ratings on April 7, 2020.  Fitch revised outlook on Petrobras to
negative and affirmed 'BB-' long term foreign currency and local
currency credit ratings on May 7, 2020.




===========================
C A Y M A N   I S L A N D S
===========================

CFLD INVESTMENT: Moody's Rates New USD Senior Unsec. Notes 'Ba3'
----------------------------------------------------------------
Moody's Investors Service has assigned a Ba3 senior unsecured
rating to the proposed USD notes to be issued by CFLD (Cayman)
Investment Ltd., an indirect wholly-owned subsidiary of China
Fortune Land Development Co., Ltd. (CFLD, Ba3 stable). The notes
will be unconditionally and irrevocably guaranteed by CFLD.

CLFD will use the proceeds from the note issuance for debt
refinancing.

RATINGS RATIONALE

"The proposed bonds — which will be mainly used for debt
refinancing — will not have a material impact on CFLD's debt
leverage, but they will slightly improve the company's liquidity
and debt maturity profile," says Danny Chan, a Moody's Assistant
Vice President and Analyst.

CFLD's Ba3 CFR reflects its standalone credit strength and a
one-notch rating uplift reflecting Moody's assessment that Ping An
Life Insurance Company of China, Ltd. (A2 stable), as CFLD's
second-largest shareholder with a 25.16% stake could provide
extraordinary support to CFLD in times of need.

Moody's expects CFLD, under the ownership of Ping An Life, will
enhance its management capability, business planning, financial
management on debt and operating cash flow, and access to bank
financing and the capital markets.

Moreover, CFLD's standalone credit strength reflects its strength
in executing a business model of industrial park and residential
property development. However, CFLD's standalone credit strength is
constrained by the company's (1) small land bank that requires
annual spending, and (2) a moderately high debt leverage.

CFLD's contracted sales in its residential property segment
declined 48.3% to RMB15.7 billion in the first quarter of 2020 amid
covid-19, following a 12% decline in 2019. However, Moody's expects
its contracted sales to recover in the next 12 months because of an
increase in salable resources from growth in contracted sales in
the residential property segment. While Moody's will closely
monitor its sales performance and cash collection, CFLD's credit
profile will be under pressure if the expected improvement does not
materialize.

Moody's expects that CFLD will gradually improve its debt leverage
— as measured by revenue/adjusted debt — to about 60%-65% over
the next 12-18 months from 56% at the end of 2019, supported by an
increase in revenue in both the property development and industrial
park businesses.

Similarly, the company's interest coverage — as measured by
adjusted EBIT/interest —should increase to about 3.5x over the
same period from 3.1x in 2019, which would support its standalone
credit profile.

CFLD's refinancing need is high and will rely on new borrowings to
cover its short-term debt, dividend payments, committed land
premiums and other payables such as trust loans and asset
management loans over the next 12 months. Nonetheless, it has a
good track record of accessing different funding channels,
including banks and capital markets, for debt refinancing to
support its high funding needs.

Moody's has also considered the following environmental, social and
governance factors in CFLD's ratings.

Moody's regards the impact of the deteriorating global economic
outlook amid the rapid and widening spread of the coronavirus
outbreak as a social risk under its ESG framework, given the
substantial implications for public health and safety.

Regarding governance risk, the company's ownership is concentrated
in the controlling shareholder Wen-Xue Wang, who, collectively with
persons acting in concert, held a 37.17% stake in the company at
the end of March 2020. This risk is mitigated by the corporate
governance oversight provided by Ping An Life through its 25.16%
stake and two seats on the nine-member board of directors.

CFLD Cayman's senior unsecured rating is unaffected by
subordination risk from claims at the operating companies, because
Moody's expects financial support from Ping An Life to flow through
the holding company of CFLD rather than directly to the main
operating companies, thereby mitigating any differences in expected
loss that could result from structural subordination.

The stable outlook reflects Moody's expectations that (1) CFLD will
gradually improve its debt leverage and cash collection while
growing its contracted sales and industrial development service
revenue, and (2) Ping An Life will remain an important shareholder
and continue to provide operational and financial oversight and
support.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING

Moody's could upgrade the ratings if the company (1) increases in
scale by growing its residential property and industrial park
businesses, (2) maintains good liquidity, and (3) improves its
credit metrics, such that its revenue/adjusted debt exceeds 75%-80%
and EBIT/interest exceeds 3.5x, both on a sustainable basis.

Moody's could downgrade the ratings if (1) the company records a
weakening in its liquidity; (2) records a decline in property
contracted sales or revenue from its industrial park business ; or
(3) it's not able to improve its debt leverage, with
revenue/adjusted debt remaining below 50% by the end of 2020 and
below 60% by the end of 2021.

Any significant reduction in Ping An Life's ownership of CFLD or
signs of weakening support would also trigger a downgrade of CFLD's
ratings.

The principal methodology used in this rating was Homebuilding And
Property Development Industry published in January 2018.

China Fortune Land Development Co., Ltd. was established in 1998
and listed on the Shanghai Stock Exchange in 2011. The company
engages in residential property development and the investment and
operation of integrated industrial parks. The company's industrial
park businesses include primary land development, infrastructure
development and construction, industry development services, and
property management and public services.

Ping An Life Insurance Company of China, Ltd. (A2 stable) is the
second-largest life insurer in China by original premium income and
99.5% owned by Ping An Group and the life insurance arm of the
group.




=============
E C U A D O R
=============

ECUADOR: IDB OKs $280MM Loan for Transformation of Energy Grid
--------------------------------------------------------------
The Inter-American Development Bank approved a $280 million loan to
Ecuador to support transformation of its its enery grid,
improvements in energy efficiency and promotion of access to
electricity generated from renewable sources.

The loan aims to support the country in its climate change goals in
the energy sector and help consolidate its fiscal and external
accounts through policy reforms. This second and final operation is
one of a series of loans that aim to support change in Ecuador's
energy grid.

Ecuador accounts for approximately 0.08 percent of the planet's
greenhouse gas emissions. Although that figure is low compared to
other countries with similar features, Ecuador has committed to
reducing 9% of its emissions by 2025 with respect to current
trends?

The support of the IDB means a lot to Ecuador, especially in the
current context in which fiscal revenue is forecast to post a major
decline as a result of the impact of the coronavirus pandemic,
which will be particularly rough in Ecuador as an oil producer.

Ecuador continues working to reduce its consumption of fossil fuels
and has done so through reforms of its energy grid. "Sectoral
policies such as those that Ecuador has been implementing are
essential for improving the performance of the electricity sector.
The evidence is clear that reforms of sectoral policies can lead to
an increase in investment and in quality of service by improving
the efficiency of the electricity sector and its financial
sustainability," said Virginia Snyder, director of the project
team.

The loan is also designed to support efforts to enhance efficiency,
modernization, innovation and sustainability in the supply of
electricity and the exchange of electricity with neighboring
countries. This will help ensure Ecuador's national supply in
possible scenarios involving adverse conditions.




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

MEXARREND SAPI: Fitch Lowers LT IDRs to B+, Outlook Negative
------------------------------------------------------------
Fitch Ratings has downgraded Mexarrend S.A.P.I. de C.V.'s Long-Term
Local and Foreign Currency Issuer Default Ratings (IDRs) and global
senior unsecured debt rating to 'B+' from 'BB-', Long-Term National
Ratings to 'BBB+(mex)' from 'A-(mex)', and local senior long-term
unsecured notes to 'BBB+(mex)' from 'A-(mex)', and removed the
ratings from Rating Watch Negative (RWN). In addition, Fitch has
affirmed Mexarrend's Short-Term Local and Foreign Currency IDRs,
Short-Term National Rating and short-term unsecured debt program at
'B' and 'F2(mex)', respectively. The Short-Term National Rating and
short-term unsecured debt program ratings were also removed from
(RWN). Fitch has also assigned a 'RR4' Recovery Rating to
Mexarrend's global unsecured bonds. The Rating Outlook is
Negative.

The downgrade reflects the further pressures on the company's
tangible leverage as of 1Q20, which in Fitch opinion has a low
probability of strengthening intrinsically in 2020 or from capital
injections as no explicit confirmation has been made even under
current highly stressed conditions. Although Fitch stated recently
that the company's Rating Watch Negative (RWN), which mainly
reflected the operating conditions coupled with higher leverage,
would be solved with financial information as of the 3Q20, the weak
results of the 1Q20 resulted in further pressure on Mexarrend's
loss absorption capacity, contrary to Fitch's expectations of a
clear deleverage trend. Fitch believes tangible leverage limits the
company's IDRs; and makes it difficult to believe tangible leverage
in the short-and-medium term will converge to levels that are
commensurate with a 'BB-'.

The Negative Outlook reflects that although the ultimate impact of
the coronavirus pandemic is yet to be seen, Fitch believes further
deterioration of the operating environment will pressure the
company's financial profile from lower expected business volumes
and higher non-performing loans over the medium term given its
business model focused on SMEs, a segment highly vulnerable to the
economic slowdown and the shutdown of activities in Fitch's
opinion.

The downgrade of Mexarrend's global and national unsecured
issuances ratings reflect the downgrade of the company's LT IDRs
and LT National Scale ratings.

KEY RATING DRIVERS

IDRS, NATIONAL RATINGS AND SENIOR DEBT

Fitch's core metric of tangible leverage ratio was a very high 20x
as of March 2020. However, this ratio incorporates temporary
impacts on capital through other comprehensive income (OCI), which
as of March 2020 were a negative MXN556 million and a higher and
virtual level of total debt as the outstanding debt of its global
bonds was registered at a significantly higher exchange rate than
what the bonds were agreed at (FX as of end of March 2020 was 24.29
MXN/USD, while derivatives are contracted at 19.06 MXN/USD). If
these temporary effects are eliminated from Fitch's core metric,
tangible leverage results on a still high 8.6x; well above Fitch's
sensitivity and on the contrary direction against Fitch's
expectation and trigger of 7x. This increase was mainly driven by
increased tax losses carried forward, which are considered as
intangibles under Fitch's criteria and due to a low profitability
affected by negative carry due to cash held on balance for future
growth. Mexarrend's capital base is already being partially
supported by mild positive earnings and no dividend payments; and
Fitch recalls that the shareholders' agreement considers the
possibility of a USD20 million injection, but profitability
prospects for the segment are low due to the characteristics of the
current crisis, which are heavily impacting SMEs.

Mexarrend's ratings are highly influenced by the current challenges
and deterioration of the operating environment, a specialized and
concentrated business model that was recently pressured by
structural changes on its revenue stream from the reduction of one
of its business lines and that Fitch believes is more vulnerable to
economic slowdown driven by its orientation towards SMEs; and its
well-positioned and growing franchise among Mexican independent
leasing companies built through organic and inorganic growth,
although small within the Mexican financial system.

Mexarrend's rating also consider inherent risks associated with
high organic and inorganic loan growth, the weaker-than-peers asset
quality ratios, the volatile and lower pre-tax income in recent
years, its funding mix with an adequate portion of unsecured
funding sources and relatively adequate liquidity position to face
the reduced cash flows that will likely arise from the coronavirus
crisis and the execution from the recent funding strategy that
resulted in an unexpected loss in 2019, that although is not
related to the core business of the company, it was the result of
Mexarrend's strategic decisions.

Mexarrend's profitability metrics have been volatile and low over
the recent years, following the placement of an unsecured bond in
2017 and another in 2019 that generated extraordinary expenses that
even led to pre-tax losses as of the close of 2019. Although Fitch
believes the non-recurring expenses registered in 2019 and the FX
and trading and derivative gains or losses are typically non-cash,
temporary and not related to the core operations of Mexarrend,
losses from the derivative instrument's unwinding did materialized
in 2019 and were not fully compensated by core earnings. As of
March 2020, the pre-tax income to average assets ratio was a low
0.9% impacted by higher interest expenses as a result of treasury
effects that derived from the negative carry of the bond issued in
July 2019, with very limited room for deterioration to be
commensurate with its rating category. Fitch considers Mexarrend's
earnings base is currently challenged by the downside risks of the
operating environment, which will likely limit the company's
forecasts and ability to implement strategies to compensate for the
recent elimination of its equipment financing business lines and
increase core earnings with a larger and growing business scale and
new businesses in the medium and long term.

Mexarrend's non-performing loan (NPL) ratio is considered
relatively high within the leasing segment but has been relatively
stable through the cycles and Fitch recalls that asset quality
benefits from the company's ownership of the leased asset and by
adequate repossession and resale strategies. This ratio includes
all leasing and loan contracts with payments overdue by more than
90 days and differs from the ratio from the financial statements
because of the way Mexarrend registers its loan portfolio. As of
1Q20, NPLs were 5.3% of gross loans, slightly below the 5.6%
average from 2016 to 2019. Concentrations by creditor increased, as
the 10 main clients were 3x the company's equity as of the 1Q20,
exacerbated by the non-cash effects from derivatives (OCI).
However, without this effect concentrations still stood at a high
2x. Loan loss for impaired loans plus leases were low at roughly
46%; however, guarantees schemes are strong. Resale risk on
foreclosed assets could exacerbate for Mexarrend under current
conditions due to its asset-based business model, which will be
tested. NPLs + foreclosed assets accounted for 6.4% of gross loans
+ foreclosed assets.

Fitch expects relevant deterioration of asset quality due to its
exposure to SMEs. Collections in April and May were relatively
stable; however, approximately a high 40% of the loan portfolio is
already adhered to a deferment program with the terms established
by the company and some of these clients are in more vulnerable
segments.

Fitch believes Mexarrend's funding base is relatively more flexible
in terms of unsecured sources than those of smaller Fitch-rated
Mexican non-bank financial institutions rated by Fitch. However, it
is highly concentrated on market debt through access to global and
local markets. As of March 2020, 72.5% of total funding was
unsecured and its portion of unencumbered assets of unsecured debt
stood at 1.1x, a reduction compared to the higher ratio of 1.4x as
of December 2018.

Mexarrend has a comfortable cash cushion from the most recent
global debt issuance that was not fully deployed. As of March 2020,
cash on hand totaled around MXN1.5 billion and there is still a
portion of unused credit facilities that fully cover maturities for
the rest of 2020 and that will aid to face temporary delays from
ample loan deferrals. Fitch considers this could partially aid in
mitigating liquidity challenges arising from the crisis. In
addition, Mexarrend has been able to roll over its short-term CP in
the local markets to meet near-term obligations. Refinance risk is
given mainly in the long term as the majority of its debt will
mature in a bullet payment in 2024.

Mexarrend's global issuances ratings are at the same level as its
Long-Term IDRs as the likelihood of default of the notes is the
same as for the IDRs. The local debt issues are at the same level
as Mexarrend's Long- and Short-Term National Ratings, reflecting
the same likelihood of default. The 'RR4' recovery rating assigned
to Mexarrend's senior unsecured issuance reflects average recovery
prospects.

Mexarrend has an ESG Relevance Score of 4 for Management Strategy
due to recent changes like a new shareholder structure and the
changed role of the founder acting only as the CEO, and not as the
chairman of the board. However, recent execution risks from
inorganic growth need to be improved. This has an impact on the
credit profile, and is relevant to the ratings in conjunction with
other factors.

Mexarrend has an ESG Relevance Score of 4 for Governance Structure
due to positive corporate practices that were implemented recently,
but areas for improvement persist and given that it is exposed to
key person risk, which moderately decreased recently. The later has
an impact on the credit profile, and is relevant to the ratings in
conjunction with other factors.

Mexarrend has an ESG Relevance Score of 4 for Financial
Transparency given that although financial transparency has
improved, this is still recent and further enhancements are still
ongoing due to its non-regulated nature. This has an impact on the
credit profile, and is relevant to the ratings in conjunction with
other factors.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

  -- The ratings could be downgraded if the debt/tangible equity
metric adjusted by the temporary effects from assets and
derivatives valuation further pressure to levels above 9x. Or from
sustained losses reported that continue to deteriorate the capital
position.

  -- A substantial deterioration of its funding mix or liquidity
profile could also trigger a downgrade.

  - Downside rating sensitivity could also arise from the economic
impacts from the coronavirus crisis, as this represents a clear
risk to its assessment of asset quality, earnings and capital.

  -- The ratings of the international and local debt issues will be
downgraded if the company's Long-Term IDRs and National Ratings,
respectively, are downgraded, as likelihood of default of these
notes is the same of the company.

  -- The notes' rating may diverge from the IDRs if asset
encumbrance increases to the extent that it relevantly subordinates
senior unsecured bondholders.

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

  -- Rating upside potential is unlikely in the near term.

  -- The ratings could be upgraded in the medium term if the
company materially improves its company profile through orderly
growth and business model diversification, together with the
greater flexibility and diversification of its funding mix and
improving asset quality.

  -- A tangible leverage ratio consistently below 5.5x supported on
a capital injection and relevantly improved and stable
profitability ratios could also trigger an upgrade.

  -- The ratings of the international and local debt issues will be
upgraded if the company's Long-Term IDRs and National Ratings,
respectively, are upgraded, as likelihood of default of these notes
is the same of the company.

  -- Rating Outlook could be revised to Stable if profitability and
capital are sustained or rapidly rebuilt towards levels
commensurate to the b level, once the effects of the pandemic
reduce.

SUMMARY OF FINANCIAL ADJUSTMENTS

For comparability and analytical purposes, Fitch reclassified
certain income statement and balance sheet accounts. In particular,
gross operating and finance lease income is composed of interest,
operating lease and equipment financing income net of the cost of
equipment. The revenue related services and supplies are presented
net of cost as "other operating income". Fixed assets under
operating leased contracts were classified as the operating lease
portfolio. Pre-paid expenses and some other assets were
reclassified as intangibles given their low loss absorption
capacity.

ESG CONSIDERATIONS

Mexarrend S.A.P.I. de C.V.: Financial Transparency: 4, Management
Strategy: 4, Governance Structure: 4

Mexarrend has an ESG Relevance Score of 4 for Management Strategy
due to recent changes like a new shareholder structure and the
changed role of the founder acting only as the CEO, and not as the
chairman of the board. However, recent execution risks from
inorganic growth need to be improved. This has an impact on the
credit profile, and is relevant to the ratings in conjunction with
other factors.

Mexarrend has an ESG Relevance Score of 4 for Governance Structure
due to positive corporate practices that were implemented recently,
but areas for improvement persist and given that it is exposed to
key person risk, which moderately decreased recently. The later has
an impact on the credit profile and is relevant to the ratings in
conjunction with other factors.

Mexarrend has an ESG Relevance Score of 4 for Financial
Transparency given that although financial transparency has
improved, this is still recent and further enhancements are still
ongoing due to its non-regulated nature. This has an impact on the
credit profile and is relevant to the ratings in conjunction with
other factors

Except for the matters discussed above, the highest level of ESG
credit relevance, if present, is a score of 3 - ESG issues are
credit neutral or have only a minimal credit impact on the
entity(ies), either due to their nature or the way in which they
are being managed by the entity(ies).


MEXICO: Central De Abasto Becomes COVID-19 Hotspot
--------------------------------------------------
John Holman at Aljazeera News reports Central de Abasto, Mexico's
biggest food market has become a hotspot for Covid-19 infections in
Mexico.

Every day, thousands of Mexicans crowd Central de Abasto, a massive
food market, that is a linchpin of the capital's food supply,
though it sits at the heart of a major hotspot for the coronavirus,
the report notes.

Lockdowns to stop the spread of the coronavirus are being lifted
worldwide and Mexico is gradually reopening but there are worries
it could be doing so too early, according to Aljazeera News.

The number of deaths and infections continue to increase as
hospitals in the capital fill up, the report relays.


MEXICO: To Sit Out Extension of OPEC+ Oil Output Cuts
-----------------------------------------------------
Miguel Gutierrez and Dave Graham at Reuters report that Mexico will
not join other top oil producers in extending through July output
cuts aimed at propping up the price of crude, Energy Minister Rocio
Nahle said.

Made up of OPEC members and allies led by Russia, the group known
as OPEC+ agreed in April to cut oil supply by 9.7 million barrels
per day (bpd) in May and June to support prices, according to
Reuters.

Under that deal, Mexico pledged to reduce its crude output by
100,000 bpd in May and June, after resisting pressure from other
oil producers to make cuts of 400,000 bpd, the report notes.

The cuts had been due to taper to 7.7 million bpd from July to
December, but OPEC+ agreed to extend the production cuts until the
end of July, the report discloses.

Mexican President Andres Manuel Lopez Obrador, who has vowed to
ramp up the country's crude oil production, said that Mexico was
not in a position to make additional cuts on top of what it had
agreed in April, the report relates.

His energy minister Rocio Nahle confirmed Mexico would not
participate in the fresh cuts agreed, the report notes.

"There are other countries that extended their cuts to July, in
this case we said no, we'll stick to the agreement that we signed
in April," she told reporters in the eastern state of Veracruz.
"There's no problem," the report discloses.

Mexico's unwillingness to go as far as other OPEC+ countries in
making output cuts caused friction with Saudi Arabia in April, the
report says.  Agreement was reached after Mexico said the United
States would help make up the difference, the report adds.


UNIFIN FINANCIERA: Fitch Affirms BB LT IDR, Outlook Negative
------------------------------------------------------------
Fitch Ratings has removed Unifin Financiera, S.A.B. de C.V.'s
(Unifin) ratings from Rating Watch Negative (RWN). Fitch has also
affirmed the Long-Term Issuer Default Ratings (IDR) at 'BB' and
National Scale Rating at 'A(mex)' with a Negative Outlook. Unifin's
global senior unsecured debt and perpetual bonds ratings were
affirmed at 'BB' and 'B+', respectively.

The RWN removal reflects Fitch's expectations that immediate risks
for a downgrade have been reduced after the recently approved
capitalization of MXN2.52bn and null dividend payment for 2020 that
will partially alleviate pressures in the company's high tangible
leverage ratios.

Fitch has assigned a Negative Rating Outlook after removing the RWN
status due to current pressures and further deterioration of the
operating environment as a consequence of the economic effects from
the coronavirus pandemic which will pressure the company's
financial profile. Fitch expects the entity will face lower
business volumes and asset quality weakening, which will
consequently affect profitability and leverage (which continues to
be the weakest link of the rating with little room for
deterioration) given its business model focused on SME that Fitch
considers more sensitive to the current economic conditions.

The ratings affirmation reflects Unifin's solid company profile
driven by its national leadership in the independent leasing sector
in Mexico and its ample expertise in its core market focused on
SME. The ratings also consider Unifin's long track record of good
earnings, controlled asset quality, as well as, increased
refinancing and liquidity risks due to its wholesale financing
profile.

KEY RATING DRIVERS

Unifin continued growing, relevantly reaching a total loan
portfolio growth of 8% at 1Q20 and driving Fitch's tangible
leverage ratio (total debt to tangible equity) to 8.1x, higher than
previous quarters. As of 1Q20, considering Fitch's hair-cut of 70%
to the revaluation surplus related to the leased asset (oil
platform) acquired in YE19 resulted in a high adjusted tangible
leverage of 9.8x (YE19: 9.6x). However, these ratios incorporate
temporary impacts on capital through other comprehensive income
(OCI) items, and a higher and virtual level of total debt as the
outstanding USD debt was registered at a significantly higher
exchange rate than what the bonds were issued (FX as of end of
March 2020 was 24.29 MXN/USD, while derivatives were contracted at
around 19 MXN/USD). If these temporary effects are eliminated from
Fitch's core and adjusted leverage metrics, tangible leverage
results are still high at 6.8x and 8x respectively; well above
Fitch's sensitivity and trigger of 7x.

However, last June 5, 2019, Unifin's board approved a capital
injection that will lead core tangible leverage to around 6x at
YE21. Adjusted tangible leverage from 70% hair-cut in the
revaluation surplus of the oil platform would be around 7x at YE21,
while adjusted metric from derivatives valuation is difficult to
forecast as it is related to market valuations, but will likely be
below the trigger of 7x. Despite Unifin's capitalization
strategies, Fitch believes the company has challenges to sustain
the improvement under the deteriorated operating environment and
the company's elevated risk appetite for growth when opportunities
arise.

Unifin has a more diversified and unsecured funding structure than
local peers. At 1Q20, the company's unsecured debt-to-total debt
stood at 73% (average 2019-2018: 62%). However, Fitch believes
refinancing and liquidity risk has increased since financial
flexibility has deteriorated faster than expected under the
worsened operating environment. Unifin's debt maturities over the
next 12 months (roughly MXN18billion, of which 44% are revolving
credit lines) represented around 22% of its total funding, of which
61% is unsecured debt. As of May 2020, cash on hand and funding
availability accounted only for around 30% of the next 12-month
funding maturities while additional risks from loan collection
deferrals are arising. However, Unifin is aiming to increase
financing alternatives sources which Fitch believes could be
challenging to achieve under the currently tough financial market
conditions.

In Fitch's view Unifin will face asset quality challenges due to
its concentrated business model on serving SME. Unifin's
nonperforming loan (NPL) ratios have been increasing. At 1Q20,
Unifin's NPL ratio stood at 4.3%, above the 3.5% average of
2016-2019. Unifin's NPLs plus foreclosed assets stood at a high
6.6% of gross loans plus foreclosed assets. The company's credit
deferral program could relieve some asset quality and loan
provisioning pressures in the near term. However, liquidity risks
from reduced cash flows due to the almost 16% of the portfolio
under current deferral program, longer-term effects on the asset
quality, as well as, resale risk on foreclosed assets could be
exacerbated for Unifin under current conditions due to its
asset-based business model, which will be tested.

Fitch believes Unifin's strong market position in the Mexican
leasing segment continues benefiting core earnings. As of March
2020, Unifin's pre-tax income to average assets ratio was 1.2%
adjusted by perpetual bonds interest payments under Fitch's
criteria. Profitability metrics have diminished since last year due
structural changes under IFRS. In addition, were impacted during
1Q20 by foreign exchange losses and the first half interest payment
of the perpetual bond. Fitch expects further pressures due to
expected lower business growth, loan collection deferrals, and
higher credit and financing costs.

SENIOR DEBT

Unifin's ratings of its outstanding global senior notes are at the
same level of the company's IDR because the likelihood of the
notes' default is the same as for Unifin.

HYBRID SECURITIES

Unifin's hybrid notes are rated two notches below its LT IDR. The
two-notch differential represents incremental risk relative to the
entity's IDRs, reflecting the increased loss severity due to its
subordination and heightened risk of non-performance relative to
senior obligations.

The hybrid notes qualify for 50% equity as it meets Fitch's
criteria with regard to the ability to defer coupon payments, the
existence of a coupon step-up of 500 bps in the event of a change
of control and its perpetual nature. The terms of the issuance
incorporate a feature that according to Fitch's criteria may be
considered an effective maturity date 15 years after the first call
date, due to the existence of a cumulative step-up greater that 100
bps. This could lead Fitch to stop assigning equity credit five
years prior to such effective maturity date.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to a
negative rating action/upgrade:

  -- A downgrade of Unifin's ratings could result from a material
deterioration of the company's financial performance that
deteriorates the total debt-to-tangible equity ratio after assets,
and derivatives valuation adjustments consistently above 7x. Or
from credit costs materially higher than expected that pressure the
tangible leverage;

  -- A substantial deterioration of its funding and liquidity
profiles could also trigger a downgrade.

Factors that could, individually or collectively, lead to a
positive rating action/downgrade:

  -- The Negative Outlook could be revised back to Stable if the
impact of the coronavirus shock on the company's credit profile is
less than expected with a relatively quick recovery. This which
will also depend on Unifin's ability to confront current challenges
and minimize the impact on liquidity, asset quality and
profitability, while leverage ratios are sustained at levels
commensurate to its current rating;

  -- The current Negative Outlook makes an upgrade highly unlikely
in the near term.

  -- Over the medium term, the ratings could be upgraded by the
confluence of an improvement of the operating environment and the
financial profile of Unifin, specifically, if the company
significantly improves its tangible leverage metrics, after assets
and derivatives valuation adjustments, towards a level consistently
level below 5.5x, while preserving its other financial fundamentals
and a strong competitive position.

SENIOR DEBT and HYBRID SECURITIES

Although the company's debt ratings do not have an explicit Rating
Outlook, it would mirror any potential movements on Unifin's IDRs.
The senior unsecured debt ratings would continue to be aligned with
the company's IDRs, while the hybrid securities two notches below.

SUMMARY OF FINANCIAL ADJUSTMENTS

Pre-paid expenses were re-classified as intangibles and deducted
from tangible equity due to low loss absorption capacity under
stress.

ESG CONSIDERATIONS

Unifin Financiera, S.A.B. de C.V.: Financial Transparency: 4,
Management Strategy: 4

Except for the matters discussed above, the highest level of ESG
credit relevance, if present, is a score of 3 - ESG issues are
credit neutral or have only a minimal credit impact on the
entity(ies), either due to their nature or the way in which they
are being managed by the entity(ies).

Unifin has ESG Relevance Scores of '4' for both Management Strategy
and Financial Transparency Issues driven by its high risk appetite,
due to ample balance sheet growth and less prudential capital
management, while third party disclosure has yet to be better
aligned to international best practices, which have a negative
impact on the credit profile, and are relevant to the ratings in
conjunction with other factors.




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

EM POLICIA: Court Approves Disclosure Statement
-----------------------------------------------
Judge Brian K. Tester has approved the Disclosure Statement filed
by EM Policia Privada Inc on Feb. 20, 2020.  The accompanying Plan
filed by the Debtor has also been confirmed.  The Debtor must
timely comply with the requirements of
LBR 3022-1 as to the application for a final decree.

                    About EM Policia Privada

Based in Bayamon, Puerto Rico, EM Policia Privada, Inc., filed a
petition under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R.
Case No. 19-02293) on April 26, 2019, listing under $1 million in
both assets and liabilities. The Debtor is represented by
NildaGonzalez-Cordero Law Offices.


EMPRESA LOCAL: Court Approves Disclosure Statement
--------------------------------------------------
Judge Brian Tester has approved the Disclosure Statement filed by
Empresa Local Global Inc.

The hearing for the consideration of confirmation of the Plan and
of such objections as may be made to the confirmation of the Plan
will be held on July 29, 2020 at 9:30 a.m. at the Jose V. Toledo,
Federal Building & U.S. Courthouse, Courtroom No. 1, Second Floor,
300 Del Recinto Sur Street, Old San Juan, Puerto Rico.

Any objection to confirmation of the plan must be filed on/or
before seven days prior to the date of the hearing on confirmation
of the Plan.

                    About Empresa Local Global

Empresa Local Global, Inc., formerly known as Casas Mi Estillo, was
created in 1987 and was in the business of selling wooden
prefabricated houses in Puerto Rico.  

Empresa Local Global filed for Chapter 11 bankruptcy protection
(Bankr. D.P.R. Case No. 14-06675) on Aug. 14, 2014.  The case is
assigned to Judge Brian K. Tester.  At the time of the filing, the
Debtor was estimated to have assets and liabilities of less than $1
million.  The Debtor is represented by Charles A.
Cuprill-Hernandez, Esq., in San Juan, Puerto Rico.




===============
X X X X X X X X
===============

[*] LATAM: COVID-19 Exacerbates Drop in Exports From Region
-----------------------------------------------------------
The value of exports from Latin America contracted by 3.2 percent
in the first quarter of 2020 compared to the same period in 2019,
according to a new report by the Inter-American Development Bank
that analyzes the trade performance of 15 countries in the region.

The contraction responds to the continuation of a downward trend
that began in early 2019, when exports from the region declined by
2.2 percent, and to the first effects of the economic crisis
triggered by the COVID-19 pandemic.

The downturn in global demand hit the region through both the price
and volume channels, according to the latest edition of Trade Trend
Estimates for Latin America and the Caribbean.

The drop in intra-regional export flows within Latin America (-8.6
percent) was the main contractive factor in the first quarter,
followed by the downturn in shipments to the European Union (-7.1
percent) and the United States (-1.0 percent). Although in recent
years, China had been the main driving force behind Latin America's
external sector, its demand for imports from the region came to a
standstill (-0.1 percent). The rest of Asia was the only
expansionary factor in Latin America's external sales.

The drop in the value of the region's exports is estimated to be
around 30 percent year-on-year in April and the downward trend will
continue at least until June 2020, according to IDB estimates.

"Looking ahead, it is likely that regional exports will contract
even more severely than during the Great Trade Collapse of
2008-2009, when they fell at an average annual rate of 24 percent
over 13 months," said Paolo Giordano, Senior Economist at the IDB's
Integration and Trade Sector, who coordinated the report.

Latin America's export volumes fell by an estimated 1.2 percent
year-on-year in the first quarter of 2020, after growing 0.5
percent in 2019.

                      Export Prices

The contraction in global demand put downward pressure on the
prices of the region's main export commodities.

The price of oil fell by 32.0 percent year-on-year between January
and April 2020, when inventories built up in response to plummeting
global demand.

Other products whose prices dropped in the same period include
copper (-11.9 percent), soybean (-2.2 percent), and coffee (-4.4
percent). Iron ore was the only major export commodity from Latin
America whose price rose in the January-April period (2.9
percent).

                      Performance by Subregion

The first subregion to experience the trade contagion of the
COVID-19 pandemic was South America, whose exports are concentrated
in commodities and for which China is a core partner. Its exports
contracted at an estimated rate of 7.6 percent after dropping 6.2
percent on average in 2019.

Mesoamerica's export growth slowed from 2.5 percent in 2019 to 1.3
percent in year-on-year in the first quarter of 2020, which
reflects the downturn in the growth of Mexico's external sales (0.6
percent). Continuing a trend that began in mid-2019, exports from
Central America accelerated remarkably, increasing by 9.1 percent
year-on-year in the first quarter of 2020. However, both trends
reversed in March, mainly because of declining demand from the
United States.

The region's total imports fell by 4.0 percent, evidencing the
deepening of the contraction of economic activity in several
countries of the region as a result of the health crisis and the
policies implemented to contain it.

The report was produced by the IDB's Integration and Trade Sector
and its Institute for the Integration of Latin America and the
Caribbean (INTAL).



                           *********


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

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

Copyright 2020.  All rights reserved.  ISSN 1529-2746.

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Information contained herein is obtained from sources believed to
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