---

       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

          Wednesday, July 22, 2020, Vol. 21, No. 146

                           Headlines



A R G E N T I N A

ARGENTINA: DBRS Confirms LT FC Issuer Rating at SD
COMPANIA LATINOAMERICANA: S&P Cuts Secured Notes Rating to D


B A H A M A S

BAHAMAS: Partners with IDB to Launch New Oil Hedging Solution


B O L I V I A

BOLIVIA: Morgue Struggles to Cope During Covid-19 Pandemic


B R A Z I L

BRAZIL: Feeling Pressure From Global Funds, to Protect Amazon
ELETROPAULO METROPOLITANA: Fitch Affirms BB+ LT IDR, Outlook Neg.


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Housing Cost Up 10% Due to Rising Dollar
DOMINICAN REPUBLIC: More Products Than Customers in Markets


G U A T E M A L A

CEMENTOS PROGRESO: S&P Withdraws BB- LT Issuer Credit Rating


J A M A I C A

JAMAICA: Inflation Rate Rises Amid Higher Food, Electricity Prices


M E X I C O

TULUM MUNICIPALITY: Fitch Gives BB LT IDR, Outlook Stable


T R I N I D A D   A N D   T O B A G O

CARIBBEAN AIRLINES: To Restart Flights to Antigua and Barbados

                           - - - - -


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

ARGENTINA: DBRS Confirms LT FC Issuer Rating at SD
---------------------------------------------------
DBRS, Inc. confirmed the Republic of Argentina's Long-Term Foreign
Currency-Issuer Rating and Short-Term Foreign Currency-Issuer
Rating at SD. As the same time, DBRS Morningstar confirmed the
Long-term and Short-Term Local Currency-Issuer Ratings at CC and
R-5, respectively. The trend on the Local Currency-Issuer Ratings
is Stable.

KEY RATING CONSIDERATIONS

Argentina's efforts to negotiate a debt restructuring deal that
will win sufficient participation from its private creditors have
not yet come to a conclusion. The government appears to be close to
an agreement, and has set a new deadline of August 4 in its new
exchange offer filed with the SEC on July 7. The current
restructuring efforts involve $66 billion in foreign law bonds.
Payments on local law bonds have already been reprofiled, and
Argentina has missed payments on several outstanding foreign law
debt securities. Given low levels of reserves, Argentina is
unlikely to make additional payments on foreign currency securities
until it settles its exchange offer with a reasonably high degree
of participation.

Argentina continues to face substantial risks given the lack of an
agreement with the IMF and significant questions regarding its
fiscal and monetary policy framework. The economy has not grown in
roughly eight years--a direct result of macroeconomic policy
weaknesses combined with successive external shocks. In spite of
efforts to limit monetary financing of the fiscal deficit, deficit
reduction remains a major political challenge, exacerbated by the
ongoing pandemic. Even if Argentina emerges from restructuring with
a more favorable debt profile, it is hard to envision a significant
improvement in its credit profile in the absence of a credible
macroeconomic stabilization effort. Inflation has come down
somewhat as the economy has weakened further due to coronavirus,
but this may give authorities a false sense of security with regard
to money growth. As long as inflation remains high, Argentina's
economy will be vulnerable to periodic episodes of capital flight.

RATING DRIVERS

The ratings are likely to be upgraded once the government
successfully concludes a debt exchange with sufficiently high
levels of participation, enabling the country to normalize its
relations with external creditors. The extent of any upgrade will
nonetheless depend on the government's commitment to sound fiscal
policy, progress in achieving durably lower inflation, and the
sustainability of the resulting debt profile. Alternatively, the
local currency issuer ratings could be downgraded if the government
fails to reach a restructuring agreement and faces additional
difficulties rolling over short-term local currency debt.

RATING RATIONALE

Coronavirus Batters an Already Weak Economy

Inconsistent macroeconomic management has weakened growth
performance and left Argentina with a high degree of vulnerability
to external shocks. Real economic growth has averaged -0.3% over
the past eight years. The economy contracted 4.8% (Q/Q) in the
first quarter of 2020, as authorities put restrictions in place to
limit the spread of coronavirus. April appears to have been the
weakest month in terms of economic activity, with some recovery in
May. Argentina was relatively quick to act in response to the
pandemic, imposing border restrictions and other social distancing
measures before the country hit 100 confirmed cases. Nonetheless,
Argentina subsequently eased restrictions, and as of the first week
of July the country has experienced a sizeable increase in daily
cases (averaging over 3,700 per day). Additional mobility
restrictions have been put in place in Buenos Aires province
through mid-July.

In April, the IMF projected GDP growth of -5.7% for 2020; this
forecast has been revised in June to -9.9%, on par with some of the
hardest hit economies from the coronavirus shock. In 2021, the IMF
projects a relatively modest recovery of 3.9%. However, the timing
of such a recovery remains highly uncertain due to the pandemic and
the potential for further weakness in global demand. Argentina's
macroeconomic stability and medium-term growth prospects will
remain heavily reliant on the government's ability to durably
reduce inflation through fiscal and monetary policy discipline.

Argentina's Fiscal Position Is Deteriorating Rapidly Amid Severely
Constrained Access to External Financing

Argentina's government continues to face serious fiscal challenges
given the response to the pandemic and the high real interest rates
associated with market borrowing. The Macri administration
(2015-2019) made some headway in reducing the fiscal deficit,
delivering a primary deficit of just 0.4% of GDP in 2019. However,
this came at a considerable cost, including substantial cuts to
capital expenditure (from 2.2% of GDP in 2016 to a mere 1.1% of GDP
in 2019). Current spending was reduced from 21.8% of GDP in 2016 to
17.7% of GDP in 2019. The Fernandez administration campaigned with
an anti-austerity message, but has acknowledged the lack of easy
options to address Argentina's fiscal challenges.

For now, the pandemic response has taken precedence over additional
fiscal consolidation efforts, with the government's relief to
affected households and businesses estimated to cost nearly 5% of
GDP. Measured from January to May (the latest data available), the
primary balance has swung from a surplus of ARS 534 billion in 2019
to a deficit of ARS 636 billion in 2020. This rapid deterioration
has been driven by rising current expenditure (up 79% y/y in
nominal terms) and revenue growth well below the rate of inflation
(up 23% y/y). Furthermore, some of the increased current spending
may be difficult to roll back after the pandemic eases, including
increased payments to low income households, retirees, and workers
in the informal sector. Capital expenditure fell in the first
quarter of 2020, likely due to administrative delays as the new
government came into place, but accelerated significantly in April
and May as the pandemic response included additional spending on
roads and other infrastructure. The deteriorating fiscal outlook
combined with historical weaknesses in fiscal policy formulation
weigh negatively on the Building Block Assessment for 'Fiscal
Management & Policy.' DBRS Morningstar notes that Argentina has
made some progress in improving the quality of public statistics
and in making available additional analysis around fiscal policy
measures, including with the creation in 2016 of the Congressional
Budget Office (OPC), but it remains to be seen whether this will
durably improve fiscal policy outcomes.

Argentina's public debt burden has risen dramatically over recent
years due to a combustible mix of high inflation and extensive
dollarization. Over 77% of Argentina's public debt is denominated
in foreign currency. As of end-2019, the IMF estimates gross debt
reached 88% of GDP, up from 57% in 2017. The precipitous decline in
the peso from April 2018 to the present (down over 70%) has
contributed to the IMF's assessment that Argentina's debt burden is
unsustainable. The sustainability of the debt profile resulting
from the current restructuring efforts will depend on Argentina's
ability to bring down inflation and stabilize the peso. Given the
fiscal response to coronavirus and without a macroeconomic
adjustment and external financing in place, Argentina's ability to
reduce monetization and get inflation under control will be
severely constrained.

Authorities may be reluctant to rely on the IMF for anything more
than a modest extension of existing funding. Unfortunately, in the
context of current global conditions, DBRS Morningstar considers
the probability of a successful macroeconomic adjustment without
multilateral support to be very low. The black market peso exchange
rate, currently trading at ARS 122 per dollar (over a 40% discount
to the official rate), is indicative of a general lack of
confidence in Argentina's macroeconomic policies. These
considerable risks to debt sustainability, Argentina's severely
weakened liquidity position, and growing contingent liability risks
to the government's balance sheet have a substantial negative
impact on our Building Block Assessment for 'Debt & Liquidity.'

Inflation Remains the Central Challenge, Though Recent Disinflation
May Present an Opportunity

The annual inflation rate has come down from its May 2019 peak of
57% (y/y), decelerating sharply in the past few months to 43% as of
May 2020. Measured month-on-month, May inflation was only 20%
(annualized). This reflects the continued decline in economic
activity, accentuated by the pandemic. In addition, authorities
have enacted emergency price controls covering food and medical
supplies. The exchange rate has been partially stabilized,
depreciating at a steady pace of 2.5-3.0% per month. ¬The monetary
policy target rate, which was reduced from 63% in December to just
38% in March, has remained stable since that time. With disciplined
wage agreements that reflect this deceleration in inflation, the
government has an opportunity to durably reduce inflation. However,
the lack of available financing and growing primary deficit are
likely to result in increased monetization of the deficit, which
will put price stability at risk. Moreover, if price controls are
sustained for too long, renewed shortages may emerge.

Argentina's financial system remains small in size and provides
only a limited capacity to finance government deficits
domestically. State-owned Banco Nacion remains a dominant player in
the banking sector. Thus far, evidence suggests that the banking
system is well-positioned to weather asset-quality deterioration
associated with the sharp downturn. The BCRA's latest financial
stability report notes that the banking system has limited exposure
to the consolidated public sector, and banks have also avoided net
FX exposure.

External Accounts Have Adjusted, But External Vulnerabilities
Remain.

Argentina is undergoing another significant adjustment in external
accounts. As the Macri administration relaxed trade restrictions
and foreign exchange controls while attempting to gradually reduce
inflation, Argentina's current account deficit widened from roughly
3% of GDP in 2016 to over 6% in mid-2018. A surge of imports drove
this deterioration, largely reflecting a rise in capital and
intermediate goods imports. Net investment income also fell deeper
into negative territory, as the administration relied increasingly
on market financing to curb monetization. Since April 2018, the
peso has lost over 70% of its value against the U.S. dollar.
Combined with the effects of the ongoing recession, this has
precipitated a sharp adjustment in the current account deficit,
mostly through import compression, bringing the current account
roughly into balance as of end-2019. The postponement of interest
payments has also contributed to reduce the deficit.

Argentina retains a considerable stock of external assets, largely
driven by the preference of Argentine savers for hard currency
assets. Argentina's net international investment position (NIIP)
reached an all-time high of $122 billion in Q1 2020 (over 27% of
GDP). Currency and deposits held abroad by Argentine residents have
increased by over $72 billion since end-2016, a nearly 50%
increase. Portfolio investment claims also increased substantially
over this period (up $25 billion), though half of this gain was
erased in Q1 2020 as global markets plunged. Portfolio investment
liabilities, which surged from under $60 billion to $165 billion in
just over two years (Q4 2015 to Q1 2018) with a significant ramp-up
in external borrowing, have subsequently plummeted to under $50
billion as foreign investors have fled the country and debt default
has further reduced the value of external claims.

Foreign exchange reserves have stabilized at $43 billion as of
end-June 2020, though net reserves are considerably lower (less
than $12 billion). Argentina's external position remains weak and
the current account adjustment is unlikely to be durable without a
sustained effort to reduce inflation and foster increased export
competitiveness. The government's recent announcement regarding the
expropriation of the soybean exporter, Vicentin, has increased
concern within the business community regarding the environment for
investment. Consequently, and in spite of Argentina's positive
NIIP, DBRS Morningstar continues to see considerable external
risks, reflected in a negative adjustment to our Building Block
Assessment for 'Balance of Payments.' In addition, the negative
adjustments reflect the more rigid exchange rate regime that has
come into place since December.

The New Administration's Response to Coronavirus Is Following a
Familiar Peronist Playbook

Argentina's latest presidential election again generated a
significant shift in economic policy, with another Peronist
administration back in power. Alberto Fernandez won the 2019
election by a comfortable margin (48% against incumbent President
Macri's 40%), with the prior President Cristina Fernandez as his
Vice-Presidential pick and running mate. In many respects,
Argentina's presidential republic remains resilient, with a
substantial degree of policy accountability, competitive elections,
and credible institutions. Nonetheless, executive powers are quite
strong, and public confidence in the integrity of the judiciary and
other branches of government is generally low. This contributes to
a high degree of unpredictability with regard to economic and tax
policies.

Several institutional and governance weaknesses remain a source of
concern. The lack of central bank independence and the ability of
presidents to replace central bank governors at will tends to
weaken monetary policy discipline and contributes to Argentina's
perennial challenges with high inflation. President Fernandez's
popularity has increased significantly due to public perceptions
regarding his government's response to Coronavirus, which compares
particularly favorably to neighboring Brazil. The policy response
has nonetheless included a number of potentially damaging policies
popular with the last Peronist administration – including price
controls, export taxes, rapid (and unfunded) growth in subsidies to
low-income households, and an announced expropriation of a major
soybean processor and agribusiness. These heightened political
risks continue to weigh on this Building Block Assessment.

ESG CONSIDERATIONS

Human Capital & Human Rights (S), Bribery, Corruption & Political
Risks (G), and Governance & Transparency (G) were among key drivers
behind this rating action. Similar to many emerging market peers,
per capita GDP is relatively low, at US$9.7k (US$20.1k on a PPP
basis). According to World Bank Governance Indicators, Argentina
ranks in the 54th percentile for Control of Corruption, the 67th
percentile for Voice & Accountability, the 46th percentile for Rule
of Law, and the 55th percentile for Government Effectiveness. These
considerations have been taken into account within the following
Building Blocks: Fiscal Management & Policy, Economic Structure &
Performance, and Political Environment.

Notes: All figures are in USD unless otherwise noted.


COMPANIA LATINOAMERICANA: S&P Cuts Secured Notes Rating to D
------------------------------------------------------------
S&P Global Ratings lowered the rating on Argentine conglomerate,
Compania Latinoamericana de Infraestructura y Servicios S.A.'s
(CLISA) senior secured notes to 'D' from 'CCC-'.

CLISA exercised the pay-in-kind (PIK) option on the July 2020
interest payment of its senior secured notes. In our opinion, the
exercise of the PIK option breaches the imputed promise of paying
in cash under the notes' terms and conditions, and we don't expect
investors will receive the full PIK amount (including any compound
interest) within a year.

We understand that the deferral of the coupon allows the company to
conserve cash amid highly uncertain economic conditions, but under
our ratings criteria, the payment of interest in kind caused us to
lower the senior secured notes rating to 'D' because the investors
won't receive the full PIK amount (including any compound interest)
within a year.

We expect to raise the senior secured notes rating in the next few
days, because we understand that the interest will be capitalized
and payable at maturity, so when this occurs the company would
again be current on its obligations under the senior secured
notes.




=============
B A H A M A S
=============

BAHAMAS: Partners with IDB to Launch New Oil Hedging Solution
-------------------------------------------------------------
The Inter-American Development Bank has partnered with The Bahamas
for a new oil hedging instrument to protect government budget and
better manage financial risks in uncertain times.

The agreement will secure an affordable crude oil coverage solution
during times of low prices for the government's Bahamas Power and
Light Electricity Company. This is the first time the IDB and
Bahamas are using such an instrument. It will better position the
country against abrupt oil price movements and offers protection
against increases in electricity costs over the next 18 months.

"This hedge illustrates the IDB's commitment to adopting innovative
strategies to support its member countries, particularly in present
climate of high uncertainty provoked by the impacts of the COVID-19
pandemic," said Daniela Carrera-Marquis, the IDB's Representative
in The Bahamas. "Through this transaction, the Government of The
Bahamas can further strengthen its risk management tools to protect
its public finances and best support the people of the Bahamas."

Deputy Prime Minister Peter Turnquest said this fuel hedge will
facilitate the creation of a well-managed energy hedging program
that will provide long lasting benefits for the archipelagic
nation. The program is expected to positively counter any loss
revenues during the pandemic.

"In recent months, crude oil prices have dropped to historic lows,
so it is a sound prudent decision to take advantage of this
opportunity," said Deputy Prime Minister Turnquest. ‘'This
partnership with the IDB will allow the government to better manage
external influences that furthers threaten quality of life in The
Bahamas during this period."

The agreement follows months of close work between the Ministry of
Finance, BPL and the IDB exploring the market for an Asian Call
option style. This benefit to BPL fuel expenses is expected to have
a long-lasting effect on the local economy as it will provide crude
oil price certainly for the next 18 months.  

As reported in Troubled Company Reporter-Latin America on June 29,
2020, Moody's Investors Service has downgraded the Government of
The Bahamas' long-term issuer and senior unsecured ratings by two
notches to Ba2 from Baa3. Moody's also changed the outlook to
negative. This concludes the review for downgrade that commenced on
April 9, 2020.



=============
B O L I V I A
=============

BOLIVIA: Morgue Struggles to Cope During Covid-19 Pandemic
----------------------------------------------------------
EFE News reports that the coronavirus pandemic has put a huge
strain on morgues with some struggling to keep up with the
increased demand on their services.

One mortuary in Santa Cruz, the worst-affected city in Bolivia,
used to receive three bodies a week before the outbreak and now has
up to 30, according to EFE News.

The morgue at Pampa de la Isla municipal hospital has run out of
sufficient space to store the dead, the report relays.

"It is fully saturated, we are also receiving people who die on the
street or at home," Carlos Faustino Tapia, 32, who has worked at
the facility since he was a teenager, tells EFE News.

"The work is hard," he adds as he and a colleague place one of the
bodies into a black plastic container, the report notes.

They seal the bag tightly before attaching a piece of paper to the
outside bearing the information of the deceased person, the report
says.

Tapia said there is not enough space to deal with the increase in
deaths and they have been forced to store some bodies on the
ground, the report notes.

The morgue has six chambers where the corpses should be stored, the
report relates.

There are also three spaces outside which do not have refrigeration
but where bodies are placed in "an emergency", he adds.

Corpses are held at the morgue for three or four days to give
relatives time to claim the remains, the report relays.

Any unclaimed bodies are buried in a mass grave at the Sagrado
Corazon de Jesus cemetery, popularly known as La Cuchilla among
locals, the report discloses.

The increase in deaths has meant morgue workers have also had to
help bereaved families with finding a cemetery plot and making the
funeral arrangements, especially for the less wealthy, the report
relays.

Santa Cruz, which is the largest city in Bolivia with more than 1.5
million inhabitants, has also been struggling with a general
shortage of burial plots in its cemeteries due to the pandemic, the
report notes.

The region has seen more than 24,900 confirmed cases, around half
of Bolivia's total, and the highest number of deaths with 709, the
report relates.

There have been more than 48,100 infections and 1,800 fatalities
across the country, the report adds.

As reported in the Troubled Company Reporter-Latin America on March
23, 2020, Moody's Investors Service downgraded the Government of
Bolivia's local and foreign currency issuer and senior unsecured
debt ratings to B1 from Ba3, and changed the outlook to negative,
concluding the review for downgrade that was initiated on December
5, 2019.



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

BRAZIL: Feeling Pressure From Global Funds, to Protect Amazon
-------------------------------------------------------------
EFE News reports that the Brazilian government committed itself to
take all "possible measures" to limit deforestation in the Amazon,
under pressure by investors who are threatening to withdraw from
the country if it does not put an end to that ongoing
bio-destruction.

"We will be judged by the efficacy of our actions and not by the
nobility of our intentions," Brazilian Vice President Hamilton
Mourao said after a meeting of the government council that is
seeking "solutions for Amazonia" at a time when that region is
already registering a higher number of forest fires, according to
EFE News.

In recent weeks, the increase in felling of trees and forest fires,
attributed in large measures to farmers who are preparing fields
for planting, generated concern among global investment funds and
private Brazilian companies, above all after the devastating fires
in 2019 in the region, the report notes.

Mourao acknowledged that that concern "which awakened in Brazil and
abroad" imposes "the need for a new state policy for the Amazon,"
which environmental organizations say is "under threat" due to the
policies of President Jair Bolsonaro, the report relays.

Regarding that criticism, Mourao reiterated that some are part of a
"campaign" mounted by countries that fear being affected by the
potential clout of Brazilian agriculture and its growing presence
in international markets, the report dicloses.

However, he acknowledged that "problems" exist, and "the firm
commitment of the Brazilian state, represented by the government,
to the protection of Amazonia and the development of that region"
must be made clear, the report notes.

Mourao cited some of the measures adopted to date, which still are
not enough for the 30 or so global investment funds who manage
about $3.5 trillion in assets and have threatened to reduce their
positions in Brazil if Brasilia does not furnish "results" in
pursuing environmentally friendly policies, the report relays.

"We're going to reduce deforestation to the minimum acceptable and
demonstrate our commitment to the international community," said
Mourau, who admitted that the results demanded by private funds
will only be able to be made known toward the end of this year,
once Amazonia emerges from the dry period, with its concomitant
forest fires, that is beginning now, the report notes.

Mourao gave a review of some of the measures adopted to date and
emphasized the deployment of some 4,000 Brazilian soldiers in the
Amazon tasked with suppressing the activities of illegal miners and
woodcutters, among other criminal groups, the report discloses.

According to the vice president, those groups have grown as a
result of the crisis caused by the coronavirus pandemic, since
"there are people who have lost their jobs" and, forced "to seek
other forms of subsistence," have joined those seeking hidden gold,
the report says.

"This year the price of gold has shot up vertically," said Mourao,
who emphasized the support of the government for the Yanomani
tribe, on whose lands some 20,000 illegal miners operate, according
to official calculations, the report notes.

He also said that the government must "recover" the ability of
official entities dedicated to caring for the environment to
oversee the sector, organizations which--according to ecological
groups--have been "dismantled" since the ultrarightist Bolsonaro
came to power in January 2019, the report says.

Mourao denied those criticisms and attributed the reduction in the
oversight provided by such entities to "inherited" budgetary
problems, but he guaranteed that the government is working to
"resolve" that situation.

"We're putting together a plan to recover all the oversight
organizations," he said, adding that that will enable "the armed
forces to be released" from their monitoring activities in the
region, the report dicloses.

The report relays that Mourao said that he will remain in contact
with domestic and foreign investors who have expressed concern over
the growing degradation of the Amazon and will relaunch talks with
the governments of Germany and Norway to negotiate a resumption of
the protection fund that those countries had sponsored.

That fund, which up until last year had $850 million available to
it, was financed mainly by those countries, who froze their
participation amid the fires last year and, in part, because of
Bolsonaro's aggressive discourse regarding the environment, the
report says.

Both Germany and Norway, like global investment funds and powerful
private companies, are demanding the adoption of a low carbon
economy for the Amazon, a demand joined by about 20 former
Brazilian economy ministers, the report discloses.

That pressure seems to be exerting pressure on the government to
the point where the ultraliberal economy minister, Paulo Guedes,
has acknowledged the "importance of sustainable growth from the
legal and environmental point of view," the report notes.

Guedes spoke at a meeting of the Organization for Economic
Cooperation and Development, at which he confirmed that if
"excesses" had occurred in the Amazon, "they will be corrected,"
the report adds.

                              About Brazil

Brazil is the fifth largest country in the world and third largest
in the Americas.  Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.

As reported in the Troubled Company Reporter-Latin America on May
8, 2020, Fitch Ratings affirmed Brazil's Long-Term Foreign Currency
Issuer Default Rating at 'BB-' and has revised the Rating Outlook
to Negative. The Outlook revision to Negative reflects the
deterioration of Brazil's economic and fiscal outlook, and downside
risks to both given renewed political uncertainty, including
tensions between the executive and congress, and uncertainty over
the duration and intensity of the coronavirus pandemic.

On April 10, 2020, the TCR-LA reported that S&P Global Ratings
revised on April 6, 2020, its outlook on its long-term ratings on
Brazil to stable from positive.  At the same time, S&P affirmed its
'BB-/B' long- and short-term foreign and local currency sovereign
credit ratings. S&P also affirmed its 'brAAA' national scale rating
and its transfer and convertibility assessment of 'BB+'. The
outlook on the national scale rating remains stable.

ELETROPAULO METROPOLITANA: Fitch Affirms BB+ LT IDR, Outlook Neg.
-----------------------------------------------------------------
Fitch Ratings has affirmed Eletropaulo Metropolitana Eletricidade
de Sao Paulo S.A. Long-Term LT Foreign and Local Currency Issuer
Default Ratings at 'BB+' and 'BBB-(bra)', respectively, with a
Negative Outlook. Subsequently, Fitch has withdrawn both IDRs for
commercial reasons. Fitch continues to rate Eletropaulo's Long-Term
National Scale Ratings at 'AAA (bra)' with Stable Outlook, which is
the same of its parent Enel Brasil S.A. and Enel Brasil's others
subsidiaries, Ampla Energia e Servicos S.A., Companhia Energetica
do Ceara and Celg Distribuicao S.A.

Enel Brasil and its subsidiaries' ratings reflect the strong legal,
strategic and operational ties between the group in Brazil and its
controlling shareholder, Enel Americas S.A. (Enel Americas; Local
and Foreign Currency IDRs A-/Stable), as per Fitch's Parent and
Subsidiary Rating Linkage methodology. This linkage is mainly
verified by the inclusion of the rated entities in cross-default
debt clauses at Enel Americas level. The parent has also a positive
track record of substantial intercompany loans, capital increases
and guarantees provided to the Brazilian subsidiaries, supporting
Enel Brasil's growth plan and improving its financial flexibility.

Fitch sees the linkage between Enel Brasil group and Enel Americas
as strong enough to justify a higher Local Currency IDR to
Eletropaulo, but considers a three-notch difference between the
company's LC IDR and the Brazilian sovereign IDR (BB-/Stable) as
appropriate for a regulated sector. When the ratings were
withdrawn, Eletropaulo's Foreign Currency IDR was one-notch above
the Brazilian country ceiling based on Fitch's "Non-Financial
Corporates Exceeding the Country Ceiling Rating" methodology, which
allows a benefit on the FC IDR when there is a stronger parent that
could provide funding for payments abroad. In Fitch's opinion,
Eletropaulo's stand-alone credit profile would be commensurate with
a similar LC IDR currently assigned to the company, considering the
strength of the group in Brazil.

The Negative Outlook for the IDRs reflected the same Outlook for
Brazil's IDRs. The weakening on the linkage with Enel Americas
and/or some deterioration on the parent's credit profile should not
pressure the ratings for Enel Brasil and its subsidiaries on the
National Scale, which supports the Stable Outlook. Fitch also
believes that the Enel Brasil's impacts from the exposure to the
coronavirus pandemic is mitigated by the group's acceptance of the
government support thought Conta Covid, which will offset large
part of impacts in the group's distributors and supports the
maintenance of the Stable Outlook.

On a standalone basis, Enel Brasil consolidated credit profile
incorporates a moderate business risk coming from its operations in
the energy distribution segment and its strong market position as
one of the largest private groups in the Brazilian power sector.
Its diversified asset base through four concessions in
distribution, three generation plants and two transmission lines
contributes to the dilution of operational risks, which are more
present in the distribution segment. Fitch considers that Enel
Brasil will keep robust financial metrics, with low leverage and
sound liquidity profile, despite of large investments and higher
dividends pressuring FCF.

The ratings were withdrawn with the following reason For Commercial
Purposes.

KEY RATING DRIVERS

Strong Linkage with the Parent: Fitch considers the legal,
strategic and operational ties between Enel Brasil and its
subsidiaries Eletropaulo, Ampla, Celg and Coelce, and its
controlling shareholder Enel Americas as strong, according to PSL
methodology. Enel Americas fully owns Enel Brasil and the rated
Brazilian companies are included in cross default clauses in the
debt held by the parent, demonstrating the strong legal linkage
that supports the ratings. Enel Brasil also has a track record of
receiving substantial intercompany loans, with an outstanding
amount of BRL1.6 billion at the end of 2019, debt guarantees and
capital increases, with BRL13.2 billion in the last three years.
This amount includes BRL9.5 billion provided in August 2019 to
repay the bridge loan raised by its Brazilian subsidiaries to
finance Eletropaulo's acquisition. Enel America focuses in the
power sector and Brazil became the main geographic area in terms of
operations after Eletropaulo's acquisition in 2018, which further
reinforces the linkage.

Robust Business Profile: The group's credit profile benefits from
its prominent position in the Brazilian electricity sector and from
the relevant asset base in the distribution segments, with some
additional generation and transmission concessions contributing to
dilute operating risks, which are more present in the distribution
segment in Brazil--the group's main business, accounting for about
90% of Fitch's estimated consolidated net revenue and 80% of EBITDA
for 2019. Enel Brasil is the largest group for this segment in the
country. In generation, Enel Brasil operates through three plants
with 1,365 MW of installed capacity--a medium size group among the
main private players in the country. This segment represented
approximately 10% and 20% of the consolidated revenue and EBITDA in
2019, respectively.

Federal Support Reduces Coronavirus Impacts: Fitch considers the
impacts of the coronavirus pandemic coming from the DisCos
overcontracted energy to meet previous expected demand, delinquency
increase and postponement of tariff readjustment will be fully
covered by federal government support through "Conta Covid." Based
on Enel Brasil group's data, the regulator anticipates an impact of
BRL3.3 billion, which represents 11%, 59% and 149% of the group's
net revenues, EBITDA and cash flow from operations of BRL30.7
billion, BRL5.6 billion and BRL2.2 billion, respectively, reported
in 2019. Enel Brasil's DisCos will have the right to receive up to
BRL3.2 billion from the Conta Covid, with the final amount
depending on real losses to be recognized over the next months.

Strong Financial Profile on Standalone Basis: Even with the federal
support to the DisCos, Fitch projects the group's consolidated
EBITDA will fall 3.4% to BRL5.4 billion in 2020, due to lower
energy market prices in the generation segment and lower demand to
cover manageable costs in distribution companies. EBITDA is
expected to recover to BRL6.1 billion in 2021, following the
expected positive effects in DisCos volumes from the recovery on
the country GDP. CFFO of BRL3.6 billion in 2020 should be benefited
by the Conta Covid resources to be received. The forecasted BRL4.7
billion CFFO in 2021 is expected to reflect the recovery in the
energy demand. Fitch's base scenario considers Enel Brasil's net
financial leverage will continue to be at conservative levels at
1.8x in 2020 and 1.5x in 2021.

DERIVATION SUMMARY

Eletropaulo's 'BB+' Foreign Currency IDR is rated one-notch above
the Brazilian country ceiling (BB), due to its strong linkage with
Enel Americas. AES Gener S.A. (BBB-/Stable) and Emgesa S.A. E.S.P
(BBB/Negative) benefit from their revenue generation and assets
located in investment-grade countries (Chile [A/Negative] and
Colombia [BBB-/Negative], respectively). Compared with other
Brazilian companies in the power sector, like Engie Brasil Energisa
S.A., Alupar Investimento S.A. and Transmissora Alianca de Energia
Eletrica S.A., the 'BB/RON' Foreign Currency IDRs for all three
entities is capped by the Brazilian country ceiling.

For the Local Currency IDR, Engie Brasil, Alupar and Taesa are
rated at the same 'BBB-/RON' level as Eletropaulo, despite their
lower business risk in the generation and/or transmission segments,
due to the limitation of three notches above the Brazilian
sovereign IDR. Fitch believes that the power distribution segment
is more volatile than other segments. All of these entities present
strong financial profiles, with low leverage for the industry and
high financial flexibility.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the Enel Brasil
group include:

  -- Fitch assumptions used GDP growth and inflationary index as
per Fitch's Global Economic Outlook (June 2020);

  -- Energy demand reduction of 4.9% in 2020 and growth of 2.8% on
average for the next three years in the distribution segment;

  -- Average annual consolidated capex of BRL3.6 billion during
2020-2023;

  -- Dividend payout of 25%.

RATING SENSITIVITIES

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

  -- Not applicable for the National Scale ratings.

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

  -- A multiple downgrade of Enel Americas' IDRs and/or Fitch's
perception of a reduction on the linkage between Enel Americas and
Enel Brasil, combined with deterioration in Enel Brasil's
consolidated credit profile, could result in a downgrade on the
group's National Scale ratings.

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

High Financial Flexibility: Fitch expects that Enel Americas will
continue to provide unconditional financial support to its business
in Brazil, and that Enel Brasil group will maintain adequate
liquidity balances that further mitigate refinancing pressures.
Enel Brasil and its subsidiaries also benefit from proven access to
bank credit facilities and the capital markets, which will be
important for long-term funding to support its robust investment
plan.

Enel Brasil does not publish quarterly financial statements. At the
end of 2019, the consolidated cash and marketable securities
position was BRL3.2 billion and total debt of BRL13.9 billion,
already excluding the bridge loan for the acquisition of
Eletropaulo that was repaid in August 2019 through a BRL9.8 billion
capital injection. Debt at the holding level of BRL1.6 billion was
fully comprised of intercompany loans and represented 11% of the
consolidated debt. On a combined basis, the subsidiaries
Eletropaulo, Coelce and Ampla, which publish quarterly financial
statements, had cash balances of BRL1.7 billion and total debt of
BRL9.6 billion at the end of the 1Q20 - being BRL1.6 billion with
short-term maturity.

After the arise of the coronavirus pandemic in Brazil, the group
borrowed BRL600 million in April through two subsidiaries, and
rolled over two intercompany loans of Ampla with the parent
totaling BRL1.0 billion. Out of the BRL3.2 billion to be raised
through Conta Covid, Fitch believes about BRL900 million regarding
regulatory assets already formed until June should be received by
the end of July and strengthen the group's liquidity position.

SUMMARY OF FINANCIAL ADJUSTMENTS

Net revenues exclude infrastructure costs.

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).



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

DOMINICAN REPUBLIC: Housing Cost Up 10% Due to Rising Dollar
------------------------------------------------------------
Dominican Today reports that with the coronavirus pandemic, the
cost of housing under construction has increased by nearly 10%, due
to the rise in the prices of materials, according to the president
of the Association of Home Builders and Developers (Acoprovi), Susy
Gaton.

The construction materials that have experienced the highest
increases are cement, steel, concrete, mortars, and blocks,
according to Dominican Today.

According to Gaton, the rise in the dollar is the cause of the rise
in prices in this sector, which she regretted, since the builders
import 40% of the finishing materials, the report notes.

"By raising the dollar we have to boost supply and demand by
lowering rates on interim loans and lines of credit.  The State has
to lower the rate to 6%, not with the reserve allowance subsidy,
but with paying the corresponding subsidies to the banks," she
recommended, the report relays.

                      Hardware Stores Say

The president of the Association of Hardware Stores, Arturo
Espinal, said that the sector he represents knew that prices would
increase due to the rise in the dollar, but they did not expect the
percentage to skyrocket more in materials, the report discloses.

He stated that cement rose around RD$40 a case, the report relays.
The rods rose by about 12%. Plumbing and plastic pipes increased by
about 30%, and light hardware, such as tools and hardware, shot up
by 35%, the report notes.  "This increase is not in correlation
with what really happened with the dollar," since the hardware
sector lost about RD$22 billion during the closure of commercial
activities by Covid-19," Espinal said, the report relates.

               They Support The Emergency Measure

Both Susi Gaton, president of Acoprovi, and Arturo Espinal, from
the hardware stores, support the extension of a new state of
national emergency in the face of the spread of the coronavirus,
but they do so under the proviso that the builders and hardware
workers have complied with all sanitary measures to avoid
contagion, the report adds.

                   About Dominican Republic

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

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

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

Standard & Poor's credit rating for Dominican Republic stands at
BB- with negative outlook (April 2020). Moody's credit rating for
Dominican Republic was last set at Ba3 with stable outlook (July
2017). Fitch's credit rating for Dominican Republic was last
reported at BB- with negative outlook (May 8, 2020).

DOMINICAN REPUBLIC: More Products Than Customers in Markets
-----------------------------------------------------------
Dominican Today reports that the sway of buyers was slow both in
the Merca de Santo Domingo and in the Mercado Nuevo de la Duarte,
where the tables were full of fresh products while the vendors
waited for customers to come and but their wares.

The use of masks was widespread in all people who attended the
markets in search of merchandise for their home or to supply their
businesses, although it was notorious the difficulties of people to
keep it on their nose and mouth, according to Dominican Today.

Merca's vegetable vendor, Juan Mosquea Perez, said sales have
dropped long after the last election and some products have
reflected price increases of up to 30%, the report notes.  He
clarifies that something is always "chopped" and the market
maintains its rhythm, but that "on some days more than others the
thing feels weak," the report relays.

Mosquea Perez explains that in products such as aubergine, okra,
bananas, and lettuce you feel the increase in prices, but people do
not protest because "they are very adapted to how things are
going," the report relates.

                          In the Merca

The fruits exhibited acceptable prices except for the chinola,
whose dozen ranges from RD$110, the report notes.  Mango depending
on the type was offered from RD$5 to up to five units for RD$100,
watermelon, and pitahaya (dragonfruit) for RD$20 a pound, ripe
bananas at three for RD$10 and a pound of lemons at RD$25, the
report relays.  In the vegetable area, the cubane pepper between
RD$15 and RD$25 a pound, the bell pepper between RD$30 and RD$45,
the salad tomato at RD$25 a pound, the cucumber at RD$10, the
cauliflower at RD$45, garlic between RD$180 and RD$190, white onion
at RD$50 and red onion at RD$65, the report adds.

                   About Dominican Republic

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

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

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

Standard & Poor's credit rating for Dominican Republic stands at
BB- with negative outlook (April 2020). Moody's credit rating for
Dominican Republic was last set at Ba3 with stable outlook (July
2017). Fitch's credit rating for Dominican Republic was last
reported at BB- with negative outlook (May 8, 2020).



=================
G U A T E M A L A
=================

CEMENTOS PROGRESO: S&P Withdraws BB- LT Issuer Credit Rating
------------------------------------------------------------
S&P Global Ratings withdrew its 'BB-' long-term issuer credit
rating on Cementos Progreso S.A. at its request. S&P said, "At the
time of the withdrawal, the outlook was stable, reflecting our view
that the company has sufficient headroom to weather challenges from
the ongoing recession in Guatemala. We estimate that the company's
net leverage metrics will temporarily increase, due to a potential
contraction in its revenue, EBITDA, and cash flows in the near
term, reflected in net debt to EBITDA of 3.0x-3.5x in 2020.
Nevertheless, we estimate a relatively rapid deleveraging in 2021."
The company's liquidity remained adequate thanks to a proactive
liability management since March 2020. Before the rating
withdrawal, Cementos Progreso's stand-alone credit profile (SACP)
remained at 'bb', one notch above its issuer credit rating,
reflecting Guatemala's sovereign rating cap.

  Ratings List

  Not Rated Action; CreditWatch/Outlook Action  
                            To      From
  Cementos Progreso S.A.

  Issuer Credit Rating     NR/--    BB-/Stable/--




=============
J A M A I C A
=============

JAMAICA: Inflation Rate Rises Amid Higher Food, Electricity Prices
------------------------------------------------------------------
RJR News reports that higher food and electricity prices pushed
Jamaica's inflation rate in May to 0.1 per cent.

During the month, electricity rates went up by 5.6 per cent,
according to RJR News.

The Statistical Institute of Jamaica (STATIN) says the increase was
tempered by a decline in tuition fees for the summer term and lower
gas prices, the report notes.

                                Jamaica

As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings revised on April 16, 2020 its outlook on Jamaica to
negative from stable. At the same time, S&P affirmed its 'B+'
long-term foreign and local currency sovereign credit ratings, its
'B' short-term foreign and local currency sovereign credit ratings
on the country, and its 'BB-' transfer and convertibility
assessment.

The TCR-LA also reported that Fitch Ratings, in April 2020, revised
Jamaica's Outlook to Stable from Positive. The Long-Term
Foreign-Currency Issuer Default Rating is affirmed at B+. The
Outlook change reflects the shock to Jamaica from the coronavirus
pandemic, which is expected to lead to a sharp contraction in its
main sources of foreign currency revenues: tourism, remittances and
alumina exports.



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

TULUM MUNICIPALITY: Fitch Gives BB LT IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings has assigned a Long-Term Local Currency Issuer
Default Rating of 'BB' to the municipality of Tulum, Quintana Roo,
Mexico. National Long-Term Rating assigned is 'A+(mex)'. The Rating
Outlook is Stable. The Standalone Credit Profile assigned is 'bb'.

Tulum's IDR is below Mexico's sovereign rating of 'BBB-'/Outlook
Stable; however, IDR's above the sovereign are capped by the
sovereign rating reflecting Fitch's view that a subnational in
Mexico cannot be rated above the sovereign.

Although Tulum's most recently available data may not have
indicated performance impairment, material changes in the central
government's debt, revenue and costs are occurring across the
sector and likely to worsen in the coming weeks and months as
economic activity suffers and government restrictions are
maintained or broadened as a result of the coronavirus pandemic.
Fitch's ratings are forward-looking in nature, and Fitch will
monitor developments in the sector for their severity and duration,
and incorporate revised base- and rating-case qualitative and
quantitative inputs based on performance expectations and
assessment of key risks.

KEY RATING DRIVERS

Risk Profile Assessed as 'Weaker'.

Tulum's risk profile reflects a combination of three factors
assessed as 'Midrange' and three as 'Weaker'; all carry an equal
weight in the overall assessment. It also reflects a moderate
dependence of federal transfers from the sovereign, weak control
over expenditure growth, low debt levels, midrange exposure to
interest rate risk and a low liquidity available under various
forms.

Revenue (Robustness) Assessed as Midrange

Fitch considers the institutional framework for national transfers
are predictable and stable; moreover, they come from a counterparty
rated at 'BBB-'. As such, Fitch considers this key rating factor as
Midrange. Tulum's operating revenues presents a superior
performance when compared to the national real GDP growth (CAGR
deflated operating revenues of 9.2% vs. -0.1% annual GDP growth),
as its structure is composed of 30% transfers and 70% own-revenue.
The trend is typical of a relatively newly municipality, with
touristic dynamism triggering tax collection. According to the
entity's administration, federal transfers, which are handled
through the State of Quintana Roo 'BBB (mex)', have shown some
lags; however, they are completed throughout the year.

In terms of operating revenue, taxes collected locally represent an
important share of the municipality's revenue structure. This
feature is a common characteristic in Mexican touristic
destinations, as they are highly dynamic in terms of land
acquisitions, hotel constructions, and commercial activities. At YE
2019, taxes represented 43.6% of total revenue with a 23% CAGR for
the last five years (2015-2019). Non-earmarked federal transfers
have shown a positive trend, growing 10.3% at YE 2019 (yoy). Even
though the expectations for 2020 are negative as a result of a
lower economic activity at the national level, it is highly
probable the Federal Stabilization Fund will be activated to
diminish the impact.

Considering preliminary figures, during the first semester of 2020
tax collection presented a drop of MXN23 million when compared to
the same period of 2019 as a result of the coronavirus pandemic
impact. The administration expects a recovery throughout the year
as activity starts to recover and through the dynamism of the
entity. Fitch will monitor the impacts and overall financial
results of the entity considering operating revenues may present a
null growth rate at year-end 2020 considering most of its economic
activity is related to tourism and the socioeconomic context
presents straggles.

Revenue (Adjustability) Assessed as Weaker

Tulum stands out for its tax collection efficiency, presenting a
much lower dependence on federal transfers than other Mexican
municipalities. At YE 2019, own-revenue collection represented
68.0% (59.3% on average in 2015-2019); however, its concentrated
economy in tertiary activities, mainly linked to tourism, poses a
risk during an economic recession. The entity has limited
independent ability to increase taxes or fees given political
approval through the State Congress and Local Council. Political
interests and costs limit updating or creating taxes. Compared with
international standards, its ability to raise taxes is still
limited from an affordability perspective (low marginality index).

Expenditure (Sustainability) Assessed as Midrange

The entity has a responsibility over moderately countercyclical
expenditure (maintenance and public services) matched by adequate
local taxes and central government transfers to finance these
expenses. This is captured by the fact that in most years of the
analyzed period, operating expenditure does not heavily outpace
operating revenue, resulting in adequate operating balances.
Tulum's main expenditure relies in public lighting, garbage
collection, road maintenance and public security (police employees,
buildings and equipment). Beach cleaning during peaks of sargassum
(algae from the sea), are compensated by state and federal support,
not representing an extraordinary outflow.

During 2019 the entity presented an important increase in its
operating expenditure as a result of hiring professional services
and advisements. According to the current administration, this is a
non-recurring event therefore operating expenditure could return to
levels observed in 2018. Under the current economic situation, the
issuer expects a higher level of expenditure in transfers as a
result of the programs applied to compensate the decrease in
economic activity. However, it expects a recovery in the second
half of the year that could lead to a recap in its budget and
financial position. Fitch foresees opex maintaining its growth
trend, considering the current economic context and growth in the
municipality. However, the dynamism in revenues compensates opex
performance, expecting stable operating balances.

Expenditure (Adjustability) Assessed as Weaker

The Financial Discipline Law mandates every local and regional
government in Mexico must generate sustainable budgetary balances.
The budget balance rule is relatively weak, as LRGs can report
operating balances equal to zero permanently or negative (under
certain assumptions) and still comply with the rule. In addition,
the budget balance rule was put in place in 2018 for
municipalities, with a low track record of application.

The municipality has weaker expenditure adjustability with no track
record of fiscal rules in place. The current level of capex is at
around 18% of total expenditure (2017-2019) and could be
discretionarily adjusted or subject to reductions. Staff
expenditure represents on average 36% of total expenditure for the
same period and its growth is volatile with a decreasing trend.
Operating expenditure averaged 82.1% of total expenditure
(2017-2019), a level assessed as weaker considering that in only
one year it was below the established benchmark of 82.5% for
Mexican municipalities. The entity presents important social needs,
with a 'Low' marginality index, low levels of education (low
trained workforce) and a growth in population and floating
population that could pose a risk to the expenditure structure
(growth in touristic activities, hotels, among others).

Liabilities and Liquidity (Robustness) Assessed as Midrange

Fitch views the national framework for debt and liquidity
management as moderate. The federal financial discipline law in
force (since 2016), has a very recent track record of application
and allows sub-nationals to acquire short-term bank lines for a
limit of up to 6% of their annual revenues.

Historically, Tulum's long-term or total direct debt has been very
low and the municipality shows low appetite for risk. The only
debts registered are short-term, the first in 2016 for MXN12.8
million and the most recent in May 2020 for MXN40 million with
Bansi. Proceeds will be used to address the coronavirus pandemic
and will be fully amortized before the entrance of the new
administration. The municipality does not register off
balance-sheet risks.

In terms of pension liabilities, the entity covers its retirees
through operating expenditure, with a current total workforce of
1,599 employees. No actions are currently considered in terms of
adhering to a state or federal regime, similar to relatively new
municipalities.

Liabilities and Liquidity (Flexibility) Assessed as Weaker

Mexican framework provides no emergency liquidity support from
upper tiers. Tulum has a limited liquidity position in terms of
cash to liabilities. At YE 2019, total cash reached MXN56 million
and in the last three years it has averaged MXN88 million. When
compared to its current liabilities, the indicator is below 1x.
Counterparty risk on committed liquidity lines (bank ratings) are
rated below 'BBB', Banco Bansi granted the short-term bank loan,
its current rating is 'A(mex)', Negative Outlook; considered a
weaker attribute by Fitch.

It is worth noticing that currently, as the entity does not hold
long-term debt, and as per Fiscal Discipline Law, the entity can
hire up to 15% of its disposable revenue for long-term debt.

Debt Sustainability Assessment: 'aa'

Tulum's debt sustainability score of 'aa' is the result of a low
payback ratio (net adjusted debt /operating balance under Fitch's
rating case) that is expected to remain below 5x until 2024. The
secondary metrics are the debt service coverage ratio (ADSCR),
which reaches 1.5x in 2021, and the very low fiscal debt burden
(1.9% in 2024).

Fitch classifies Tulum--as with all Mexican LRGs--as type B, as it
covers debt service from its cash flow on an annual basis.

Tulum is one of the eleven municipalities of the state of Quintana
Roo and was created on May 19, 2008. The entity has a territorial
extension of 2,040.9 square km and a population of 32,714
inhabitants according to the 2015 census (2.2% / state population).
Main economic activities are concentrated in local commercial
activities and tourist services (both activities categorized as low
added value activities), with an economically active population of
approximately 59.7%. The municipality has a 'Low' degree of
marginalization and shortages in health and education (8% of the
population is illiterate).

DERIVATION SUMMARY

Tulum's 'bb' SCP is derived from a combination of a 'Weaker' risk
profile assessment and debt metrics, which resulted in 'aa' debt
sustainability assessment. The SCP also factors in appropriate
rated peers' positioning. Fitch does not consider any asymmetric
risks that could negatively impact the final IDR of the entity.
Also, it does not apply extraordinary support from upper-tier
government, non-existent in the Mexican subnational framework.

KEY ASSUMPTIONS

Rating case:

  -- Operating revenue increases 12.9% on average for 2020-2024.

  -- Operating expenditure increases 13.9% on average for
2020-2024.

  -- Variable interest rate of 5% in 2020, 5.5% in 2021, 6.5% in
2022 and 7.0% in 2023-2024 (reference interest rate, TIIE).

  -- Short-term debt of MXN40 million in 2020, paid in 2021 as per
current disposal.

  -- Long-term debt of MXN100 million in 2022, in line with Fiscal
Discipline Law guidelines.

RATING SENSITIVITIES

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

  -- If ADSCR are consistently above 2x in the rating case scenario
for the whole forecasted period.

  -- Improvement relative to position with peers in higher rating
levels.

  -- An improvement on any of its KRF, although not expected by
Fitch.

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

  -- A payback ratio above 5x, that could result from an important
deterioration in the operating balance and long-term debt disposal;
and a DSCR below 1.5x under Fitch's rating case scenario.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Sovereigns, Public Finance
and Infrastructure 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 three 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.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch's net adjusted debt corresponds to the difference between
Fitch-adjusted debt and the LRGs' unrestricted cash. The latter
corresponds to the level of cash at the end of the year, excluding
the cash that is viewed by Fitch as being earmarked for payables or
restricted.

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).



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

CARIBBEAN AIRLINES: To Restart Flights to Antigua and Barbados
--------------------------------------------------------------
RJR News reports that Caribbean Airlines Limited is set to restart
flight operations between Kingston, Jamaica and Antigua and
Barbados on July 25.

There will be twice weekly flights, according to RJR News.

Caribbean Airlines says the re-introduction of the flights is part
of its phased restart of its commercial operations out of Jamaica,
the report note.

                     About Caribbean Airlines

Caribbean Airlines Limited - http://www.caribbean-airlines.com/-
provides passenger airline services in the Caribbean, South
America, and North America.  The company also offers freighter
services for perishables, fish and seafood, live animals, human
remains, and dangerous goods.  In addition, it operates a duty free
store in Trinidad.  Caribbean Airlines Limited was founded in 2006
and is based in Piarco, Trinidad and Tobago.

As reported in the Troubled Company Reporter-Latin America on
November 2, 2015, RJR News said that Michael DiLollo, Chief
Executive Officer of Caribbean Airlines Limited, quit after just 17
months on the job. The 48-year-old Canadian national, citing
personal reasons, resigned with immediate effect.  His resignation
was accepted by the airline's board of directors. Mr. DiLollo was
appointed Caribbean Airlines CEO in May 2014, following the sudden
resignation of Robert Corbie in September 2013.

In early February 2015, Larry Howai, then Finance Minister, told
Parliament that unaudited accounts for 2014 showed the airline made
a loss of US$60 million, inclusive of its Air Jamaica operations,
and the airline planned to break even by 2017. Mr. Howai told the
Parliament that a five-year strategic plan had been completed and
was in the process of being approved for
implementation.

In an interview with the Trinidad & Tobago Guardian in early
November 2015, Mr. DiLollo said CAL did not need a bailout just
yet. Mr. DiLollo said the airline had benefited from extremely
patient shareholders for years and he believed the airline was
strategically positioned to break even in three years.


                           *********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000.
.


                  * * * End of Transmission * * *