/raid1/www/Hosts/bankrupt/TCRLA_Public/170904.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, September 4, 2017, Vol. 18, No. 175
Headlines
B R A Z I L
BRAZIL: Temer Pushes for Chinese Investment Ahead of BRICS Summit
BRAZIL: Economy Grows Slightly in Second Quarter
GP INVESTMENTS: S&P Affirms 'BB' Ratings, Outlook Still Negative
JBS SA: Holding Company Sells Paper-Pulp Maker Amid Scandal
C O L O M B I A
COLOMBIA TELECOMUNICACIONES: Fitch Ups LT Currency IDR to BB
J A M A I C A
JAMAICA: Signs Trade, Investment Deal With Chile
M E X I C O
COATZACOALCOS: Moody's Lowers Issuer Rating to Caa1; Outlook Neg.
P U E R T O R I C O
PLANET FITNESS: Moody's Revises Outlook to Pos. & Affirms B1 CFR
PUERTO RICO: AFL-CIO Files Adversary Complaint
PUERTO RICO: Oversight Board Wants Insurers' Lawsuit Dismissed
PUERTO RICO: Unions Protest Pay Cut for Public Employees
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Maduro Appoints New Chairman
VENEZUELA: Bonds Get Harder to Trade Thanks to Sanctions
X X X X X X X X X
* BOND PRICING: For the Week From Aug. 28 to Sept. 1, 2017
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B R A Z I L
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BRAZIL: Temer Pushes for Chinese Investment Ahead of BRICS Summit
-----------------------------------------------------------------
EFE News reports that the Brazilian President said, at a forum of
entrepreneurs in Beijing, the South American country is on an
economic growth track and offering incentives for foreign
investment with privatization and reform plans.
Brazil is getting back on the track of growth and is looking
forward to working with Chinese entrepreneurs, Michel Temer said
at a forum, where he addressed Brazil's economic evolution and the
government plan to boost it, according to EFE News.
Brazil is a land of opportunities, with the country's GDP growing
one percent in Q1 and 0.2 percent in Q2, leaving behind eight
consecutive quarters of decline, according to Temer, the report
notes.
The report relays that the Brazilian president said the country is
going through measures and reforms, including a new model of
concession and privatization that responds to the challenge of
infrastructure growth.
He also stressed the new regulatory frameworks in the energy,
mining and electricity sectors, and a plan for labor law reform to
support investment, the report notes.
The report discloses that the Brazilian president spoke about the
social security pension reform, which seeks to ensure
sustainability and is fundamental to the transparency of public
accounts.
Bilateral trade was worth more than US$58 billion in 2016,
compared to $3 billion in 2001, the report relays. China is
Brazil's largest trading partner since 2009.
Brazil also aims to enjoy the growing number of Chinese tourists,
Temer said, with the new visa offices opening for both tourists
and businessmen from China, the report notes.
Temer participated in the forum along with Chinese Vice Premier
Wang Yang, who said in the speech that Brazil and China are closer
than ever, with the growing political and economic relationship,
the report says.
The Brazilian president is set to visit the southwestern city of
Xiamen, where the 2017 BRICS (Brazil, Russia, India, China and
South Africa) summit begins in the afternoon and concludes, the
report adds.
As reported in the Troubled Company Reporter-Latin America on
Aug. 17, 2017, S&P Global Ratings removed its 'BB' long-term
foreign and local currency sovereign credit ratings on the
Federative Republic of Brazil from CreditWatch, where it had
placed them with negative implications on May 22, 2017. S&P said,
"At the same time, we affirmed the 'BB' long-term ratings, and the
outlook is negative. We also affirmed our 'B' short-term foreign
and local currency ratings on Brazil. The transfer and
convertibility assessment is unchanged at 'BBB-'. In addition, we
removed the 'brAA-' national scale rating from CreditWatch with
negative implications and affirmed the rating with a negative
outlook. This incorporates the revision of the mapping table for
Brazil national scale ratings, published Aug. 14, 2017."
BRAZIL: Economy Grows Slightly in Second Quarter
------------------------------------------------
EFE News reports that Brazil's economy grew slightly in the second
quarter of 2017, expanding 0.2 percent relative to the year's
first three months, the government said.
The South American giant had posted gross domestic product (GDP)
growth of 1 percent in the January-to-March period, bringing an
end to eight consecutive quarters of contraction, according to EFE
News.
As reported in the Troubled Company Reporter-Latin America on
Aug. 17, 2017, S&P Global Ratings removed its 'BB' long-term
foreign and local currency sovereign credit ratings on the
Federative Republic of Brazil from CreditWatch, where it had
placed them with negative implications on May 22, 2017. S&P said,
"At the same time, we affirmed the 'BB' long-term ratings, and the
outlook is negative. We also affirmed our 'B' short-term foreign
and local currency ratings on Brazil. The transfer and
convertibility assessment is unchanged at 'BBB-'. In addition, we
removed the 'brAA-' national scale rating from CreditWatch with
negative implications and affirmed the rating with a negative
outlook. This incorporates the revision of the mapping table for
Brazil national scale ratings, published Aug. 14, 2017."
GP INVESTMENTS: S&P Affirms 'BB' Ratings, Outlook Still Negative
----------------------------------------------------------------
S&P Global Ratings Services affirmed its 'BB' long-term issuer
credit rating on GP Investments Ltd. S&P said, "At the same time,
we affirmed our 'BB' rating on the company's perpetual bonds. In
addition, we revised our recovery rating of '4' from '3',
indicating our expectation that lenders could expect average
recovery of 45% in the event of a payment default or bankruptcy.
The outlook remains negative."
The ratings on GP Investments reflect its weak business risk
profile compared to other global asset managers, stemming from a
moderately high country risk of Brazil and intermediate industry
risk for asset managers. The ratings on the entity also reflect
S&P's assessment of its financial risk profile as intermediate.
S&P said, "Our assessment of the company's business risk profile
as weak reflects its smaller assets under management (AUM) base
than those of other global asset managers, and its limited
diversification, with an investment portfolio focused on 10
companies, most of which are located in Brazil. The entity
compares less favorably with other global private equity firms
that have greater geographic reach and portfolio diversification.
GP Investments' average profitability and solid position and track
record in the Latin American private equity business only
partially mitigate these weaknesses."
JBS SA: Holding Company Sells Paper-Pulp Maker Amid Scandal
-----------------------------------------------------------
Luciana Magalhaes at The Wall Street Journal report that the
company of troubled Brazil meatpacker JBS SA JBSAY 0.73% said it
sold its paper-pulp maker Eldorado Brasil Celulose SA to
Netherlands-based Paper Excellence for BRL15 billion ($4.8
billion).
The transaction is expected to take up to 12 months to be
completed, the companies said in a statement, according to The
Wall Street Journal.
Eldorado was one of the key assets owned by J&F Investimentos, the
holding company that belongs to the family of brothers Wesley and
Joesley Batista, who have admitted to bribing government officials
for several years in exchange for favors, including easier access
to cheap financing, the report notes.
JBS chief executive officer Wesley Batista is under pressure from
shareholders who want to remove him from the helm of the
meatpacker, the report relays. His brother, Joesley Batista,
resigned earlier this year as JBS's chairman.
Through their family holding company, J&F, the brothers have
agreed to pay a BRL10.3 billion ($3.3 billion) fine to sign a
leniency agreement with Brazilian prosecutors, the report notes.
As part of its efforts to raise cash amid the scandal, J&F
recently agreed to sell flip-flop maker Alpargatas SA, ALPA4 0.36%
owner of the Havaianas brand, to a group of investment firms, as
well as dairy company Vigor Alimentos SA to Mexico's Group Lala
SAB, the report relays.
Dutch firm Paper Excellence, meanwhile, opened its first cellulose
plant in 2007 in Meadow Lake, Canada, and has since been buying
more plants both in Canada and Europe, according to the statement,
the report adds.
As reported in the Troubled Company Reporter-Latin America on
July 31, 2017, S&P Global Ratings affirmed its 'B+' global scale
corporate credit ratings on JBS S.A. and JBS USA and its 'brBBB-'
national scale rating on JBS. S&P also affirmed the 'B+' senior
unsecured debt ratings on JBS and JBS USA and the 'BB' senior
secured debt ratings on JBS USA. At the same time, S&P removed all
ratings from CreditWatch. The outlook is negative.
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C O L O M B I A
===============
COLOMBIA TELECOMUNICACIONES: Fitch Ups LT Currency IDR to BB
-------------------------------------------------------------
Fitch Ratings has upgraded Colombia Telecomunicaciones S.A. ESP's
(Coltel) Long-Term Foreign and Local Currency Issuer Default
Ratings (IDR) to 'BB' from 'BB-'. Fitch also upgraded its senior
unsecured notes to BB from 'BB-', and its subordinated perpetual
notes to B+ from 'B'. The Negative Rating Watch has been removed
and a Stable Outlook has been assigned.
KEY RATING DRIVERS
The removal from Rating Watch Negative and the upgrade reflect
Coltel shareholders' approval on Aug. 29, 2017 of the
recapitalization of the company to fund a full repayment of the
company's Parapat liability of COP4.8 trillion and arbitration
verdict of COP1.65 trillion. Telefonica SA (Telefonica) will
provide in cash COP4.35 trillion, in line with its 67.5%
ownership, and the Ministry of Finance of Colombia will assume its
pro-rated proportion of Parapat liability without disbursement of
funds. The company already paid off its arbitral award on Aug. 29,
with 67.5% paid by the cash injection from Telefonica, and the
remainder assumed by the Ministry of Finance.
The remaining capital injection process to pay for the Parapat
liability is expected to be completed, following the final
termination of the Parapat operating agreement. This will result
in a transfer of Parapat operating assets to Coltel, including
fixed-line network operations in Bucaramanga and Barranquilla,
which should provide increased scale and operational synergies.
Fitch believes that this capitalization will materially improve
the company's weak capital structure, with its adjusted net
leverage estimated to improve to around 3.0x from 5.5x as of
December 2016 with a full prepayment of Parapat debt. It also
frees up cash resources equivalent to approximately 30% of the
company's projected EBITDA during 2017-2019 to be used for its
capex to shore up network competitiveness.
Capitalization to Benefit Cash Flow Performance: Coltel's negative
FCF generation is expected to turn modestly positive over the
medium term once the capitalization is completed and Parapat
liability is removed. Under the current capital structure, the
cash outflow burden related to its PARAPAT payments pressured its
FCF generation into negative territory. Upon consummation of the
capitalization, Coltel's FCF is expected to become positive and
average about COP45 billion annually assuming the company executes
a capex strategy in line with a historical capex-to-sales ratio of
20% of revenues to strengthen its weak fixed-line network business
in 2017-2019.
Deleveraging Expected: Coltel's leverage has been high for the
'BB' rating category. Fitch's calculation of adjusted net debt-to-
EBITDAR (including PARAPAT debt, 50% of the perpetual bond, and
the hedging of FX risk) remained above 5x as of June 2017, while
the leverage ratio calculated under the 2022 USD750 million senior
bond covenant (which includes 100% of the perpetual bond, excludes
the PARAPAT debt but adjusts EBITDA by subtracting LTM PARAPAT
payments), stood at 4.3x during the same period. Fitch expects
Coltel's adjusted net leverage to fall close to 3.0x post
capitalization, a level that is deemed in line with its 'BB'
rating level. The capitalization will improve not only the
company's leverage metrics, but will also enable compliance with
the 2022 notes incurrence leverage covenant (no greater than
3.75x), affording it much needed financial flexibility to issue
additional debt if needed to support its investment strategy.
EBITDA Improvement: Coltel's EBITDA increased by 7.1% during the
six months as of June 2017, compared to the same period in 2016,
and its EBITDA margin expanded to 32% from 30%. The margin
expansion is a result of the company's efforts to increase prices
for some of its services during the fourth quarter of 2016 (4Q16)
and 1H17 which helped achieve a 2.6% revenue increase as of June
2017, on a year-over-year basis, just over the increase in costs
and expenses of 0.1% during the same period.
Fitch expects the company's ability to adjust prices going forward
to be more limited given the fierce competitive landscape and
relatively weaker GDP growth expected in the near term. Fitch also
expects ARPU pressures to continue in its mobile operation. Fitch
expects Coltel's EBITDA growth to be modest given the expectation
of a slow diversification from voice revenues to non-traditional
services, resulting in EBITDA margin close to 31% in 2017-2019.
Competitive Position Remains Weak: Coltel has yet to show
meaningful growth in its high-ARPU products, such as broadband
(UBB) and HD-TV, which would improve its EBITDA and higher revenue
diversification. The contribution from its pay-TV service remained
at just 6% of total sales as of June 2017, significantly lower
than its 10% target. On UBB, the company's market share declined
due to its re-basing of the subscriber numbers and a high level of
competition. Fitch expects Coltel's capex intensity to average 20%
in 2017-2019 (23.8% in 2012-2016) as it tries to optimize its
capex, focusing primarily on deploying its fiber-to-the-home
(FTTH) network and increase home passes (HPs) to 203,000 by
FY2018, after reaching 109,000 by end-2017. Should the company
fail to increase its number of HPs as planned in the short term,
this could continue to negatively impact its market position in
the fixed-line operation.
Equity Expected to Turn Positive: Coltel's equity remained
negative as of June 2017 (negative COP1.4 trillion once the
perpetual bond is adjusted for 50% equity credit), which needs a
structural and permanent solution to the capital structure of the
company. The approved capitalization will cure the negative equity
position registered since 2015, as a result of the adoption of the
IFRS standard which brought the PARAPAT liability onto the balance
sheet and drove the company's equity into negative territory. This
situation kept the company susceptible to dissolution under the
Colombian Code of Commerce if a permanent solution to the
sustainability of its capital structure was not reached before
September 2018.
DERIVATION SUMMARY
Coltel's financial profile is weak compared to other 'BB' category
telecom operators in the region. Empresa de Telecomunicaciones de
Bogota, S.A., E.S.P. (ETB), which is rated 'BB+'/Negative and is a
direct competitor to Coltel in Colombia, boasts lower leverage
than Coltel, although its narrow breadth of service offerings
offsets the strength to an extent. Also, the company's financial
profile is materially weaker than Millicom's operating
subsidiaries in Guatemala and Paraguay, which are both rated
'BB+'/Stable. Based on the pro forma capital structure on the
completion of the capital injection, Coltel's financial profile
will become stronger compared to the 'BB-' rated telecom peers in
the region, such as Cable & Wireless Communications Limited, VTR
Finance, and Axtel S.A.B. de C.V.
KEY ASSUMPTIONS
Fitch's key assumptions within the rating case for Coltel include:
- The capitalization is completed as announced;
- Leverage after capitalization remains approximately 3.0x in
2017-2019.
RATING SENSITIVITIES
Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
A positive rating action could follow once the capital structure
takes place if:
- The eventual realization of synergies derived from the
consolidation of Parapat assets leads to a strengthening of
Coltel's competitive position;
- The strengthening of the fixed operation in support of EBITDA
generation leads to a market share improvement in its fixed
business;
- The company deleverages to below 2.5x on a sustained basis.
Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- Failure to improve its still relatively weak liquidity profile;
- Continued profitability deterioration due to competitive
pressures and slow growth in its non-traditional business
segments;
- Negative FCF generation;
- Adjusted net leverage above 3.5x on a sustained basis.
LIQUIDITY
Coltel's liquidity remains weak, but Fitch expects this will
improve with the approved capitalization, which will provide
enhanced financial flexibility. The company's cash balances as of
June 30, 2017, including short-term investments, fell to COP87
billion from COP215 billion in 2016, representing just 8% of
short-term debt obligations of COP1,157 billion, an amount that
includes COP692 billion associated with the PARAPAT consideration.
If the mark-to-market asset derivative position that could be
unwound during 2H17 is considered, then the company could obtain
additional cash resources of approximately COP500 billion.
Although Coltel reported COP309 billion in available lines of
credit as of March 2017, the company cannot draw a significant
amount from this liquidity backup as the piercing of its 2002 bond
leverage covenant threshold (3.75x) continues.
The company's financial flexibility has diminished following its
crossing of the 3.75x leverage incurrence covenant under the 2022
bond indenture as of December 2015 and as a result can only take
additional debt to a maximum of USD300 million. As of June 30,
2017, USD207.6 million out of the permitted USD300 million
additional debt was drawn from its credit facilities. The limited
headroom for additional debt imposes a material financial
constraint to meet financial obligations and simultaneously fund
its capex strategy. Further delays in the capitalization of the
company to pay down its PARAPAT liability could lead to an
important reduction in capex execution in the short term,
postponing the deployment of its FTTH investment strategy and
further weakening its competitive position.
FULL LIST OF RATING ACTIONS
Fitch has upgraded the following ratings:
Colombia Telecomunicaciones S.A. ESP
-- FC IDR to 'BB' from 'BB-';
-- LC IDR to 'BB' from 'BB-';
-- 2022 notes to 'BB' from 'BB-';
-- Subordinated bond to 'B+' from 'B'
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J A M A I C A
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JAMAICA: Signs Trade, Investment Deal With Chile
------------------------------------------------
RJR News reports that Jamaica and Chile have signed an agreement
to boost investment and regional trade.
Foreign Minister Kamina Johnson Smith and her Chilean counterpart
signed a Memorandum of Understanding for technical cooperation
between ProChile and JAMPRO, according to RJR News.
The delegation had discourse with Chile's National Chamber of
Commerce, Services & Tourism about potential opportunities for the
private sector in Jamaica and Chile, the report notes.
They also discussed mutual areas of interest such as mining,
logistics, agriculture and agro-business, the report adds.
As reported in the Troubled Company Reporter-Latin America on
Feb. 9, 2017, Fitch Ratings affirmed Jamaica's Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) at 'B' with a
Stable Outlook. The issue ratings on Jamaica's senior unsecured
Foreign and Local Currency bonds are also affirmed at 'B'. The
Outlooks on the Long-Term IDRs are Stable. The Country Ceiling is
affirmed at 'B' and the Short-Term Foreign Currency and Local
Currency IDRs at 'B'.
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M E X I C O
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COATZACOALCOS: Moody's Lowers Issuer Rating to Caa1; Outlook Neg.
-----------------------------------------------------------------
Moody's de Mexico downgraded the issuer ratings of the
Municipality of Coatzacoalcos to Caa1 from B2 (Global Scale, local
currency) and B2.mx from Ba1.mx (Mexico National Scale). The
outlook remains negative.
RATINGS RATIONALE
The downgrade to Caa1/B2.mx from B2/Ba1.mx reflects Coatzacoalcos'
structural liquidity pressures, as evidenced by a second missed
payment on a factoring facility with Banco del Bajio. The
downgrade also reflects the ongoing fiscal pressure associated
with a stagnation of Coatzacoalcos' revenues and high
infrastructure spending. The negative outlook reflects Moody's
expectation of no significant improvements in the aforementioned
structural weaknesses in the medium term.
Coatzacoalcos' liquidity level is one of the lowest among Moody's
rated Mexican municipalities. Moody's estimates that
Coatzacoalcos' cash to current liabilities ratio is close to zero
as of June 2017. The municipality's very poor liquidity results
mostly from a significant growth of current liabilities driven by
large infrastructure spending. Current liabilities registered a
compounded annual growth rate (CAGR) of 17.9% between 2012 and
2016.
Coatzacoalcos' liquidity pressures have led to recurrent delays in
meeting obligations related to factoring facilities (cadenas
productivas). These include one in July 2016, with Banco Santander
and the second one in July 2017, with Banco del Bajio of MXN 25
million (23% of operating revenues). The latter is still due and,
according to the municipality, will be repaid in the next two
months. Moody's notes, however, that all of Coatzacoalco's long
term debt is secured and backed by federal transfers.
In addition, the municipality's revenues have remained weak.
Between 2013 and 2016, own source revenues and federal
participations (70% of Coatzacoalcos total revenues) registered a
CAGR of -10.6% and -2.9%, respectively. This weak revenue profile
exerts additional pressure on the liquidity and overall financial
performance of the municipality.
Given a forecast of stagnant revenues and continuously high
infrastructure spending, Moody's expects that Coatzacoalcos will
likely continue to accumulate current liabilities, adding to
difficulties for the timely repayment of short term obligations.
Moody's also expects that the municipality will continue to record
cash financing deficits at around 9%-11% of total revenues.
RATIONALE FOR THE NEGATIVE OUTLOOK
The negative outlook reflects Coatzacoalcos' challenges to redress
financial performance and significantly improve its liquidity
metrics over the medium term and well beyond the arrival of a new
administration in January 2018.
WHAT COULD CHANGE THE RATINGS UP/DOWN
Given the negative outlook, it is unlikely that the ratings will
be upgraded in the next 18 months. Yet, a sustained improvement in
Coatzacoalcos's liquidity metrics and financial results could
exert upward pressure on the municipality ratings.
Conversely, the ratings could be further downgraded if liquidity
continues to deteriorate and the municipality relies heavily on
short-term debt.
The principal methodology used in these ratings was Regional and
Local Governments published in June 2017.
The period of time covered in the financial information used to
determine the Municipality of Coatzacoalcos's rating is between
01/01/2012 and 31/12/2016. (Source: Municipality of Coatzacoalcos)
Moody's National Scale Credit Ratings (NSRs) are intended as
relative measures of creditworthiness among debt issues and
issuers within a country, enabling market participants to better
differentiate relative risks. NSRs differ from Moody's global
scale credit ratings in that they are not globally comparable with
the full universe of Moody's rated entities, but only with NSRs
for other rated debt issues and issuers within the same country.
NSRs are designated by a ".nn" country modifier signifying the
relevant country, as in ".za" for South Africa. For further
information on Moody's approach to national scale credit ratings,
please refer to Moody's Credit rating Methodology published in May
2016 entitled "Mapping National Scale Ratings from Global Scale
Ratings". While NSRs have no inherent absolute meaning in terms of
default risk or expected loss, a historical probability of default
consistent with a given NSR can be inferred from the GSR to which
it maps back at that particular point in time. For information on
the historical default rates associated with different global
scale rating categories over different investment horizons.
======================
P U E R T O R I C O
======================
PLANET FITNESS: Moody's Revises Outlook to Pos. & Affirms B1 CFR
-----------------------------------------------------------------
Moody's Investors Service changed the ratings outlook for the debt
of Planet Fitness Holdings, LLC to positive from stable. At the
same time, Moody's upgraded its Probability of Default Rating
(PDR) for the company to B1-PD, from B2-PD, and revised its
Speculative Grade Liquidity rating to SGL-1 from SGL-2. In
conjunction with this action, Moody's also affirmed the company's
B1 Corporate Family Rating (CFR) and the B1 ratings for its Senior
Secured Bank Credit Facilities.
The positive outlook reflects strong operating performance and an
improving financial profile, which Moody's expects to persist. In
particular, Moody's cited its expectation of continued strong
growth in EBITDA and cash flow from operations, with related
improvement in key credit metrics, including free cash flow-to-
debt rising above 8%. The upgrade to SGL-1 acknowledges the
strength of Planet Fitness' liquidity profile given its sizable
free cash flow forecast for 2017 and 2018. Moody's estimates that
Planet Fitness will generate about $85 million in free cash flow
for the full year of 2017 which will increase to almost $100
million in 2018. The upgrade of the PDR to B1-PD reflects the
associated credit enhancement and perceived reduction in default
risk.
"Planet Fitness is poised to experience another year of strong
earnings growth as its franchise based business model allows it to
have new club openings that outpace the market which Moody's
believes will drive further market share gains and strengthen
credit metrics and cash flow," stated Maggie Taylor, a Senior Vice
President with Moody's.
Rating Actions:
Corporate Family Rating, Affirmed at B1
Probability of Default Rating, Upgraded to B1-PD from B2-PD
$75 Million Senior Secured Revolving Credit Facility due 2019,
Affirmed at B1 (LGD3)
$718 Million ($713.1 million outstanding at June 30, 2017) Senior
Secured Term Loan B due 2021, Affirmed at B1 (LGD3)
Speculative Grade Liquidity Rating, Upgraded to SGL-1 from SGL-2
Outlook, Changed to Positive from Stable
RATINGS RATIONALE
Planet Fitness' B1 CFR broadly reflects its national brand and
leading market position in terms of number of clubs and
membership. The rating is supported by Planet Fitness' strong
comparable store sales growth and rapid pace of new club openings
that far outpace the industry. The rating benefits from its
franchise-based business model which drives EBITA margins of
nearly 40% and strong cash flows. The rating also considers Planet
Fitness' solid interest coverage, with EBITA-to-interest expense
of 4.4 times for the trailing twelve-month period ended June 30,
2017 and further strengthening anticipated. Planet Fitness has
very good liquidity, supported by cash balances of $78.5 million
as of June 30, 2017, a fully available $75 million revolving
credit facility and free cash flow estimate of $85 million for
2017 and just below $100 million in 2018.
However, the rating is constrained by Planet Fitness' financial
policy which supports the potential for further debt financed
shareholder friendly activities so long as leverage remains within
its target range of net funded debt-to-EBITDA of 3-5 times
(company-defined levels). For the lagging twelve month period
ended June 30, 2017, Moody's lease adjusted debt to EBITDA was
4.2x. It is also constrained by Planet Fitness' comparatively
small revenue base, and its concentration in the highly fragmented
and competitive fitness club industry, which has low barriers to
entry, high attrition rates and exposure to discretionary consumer
spending trends.
The ratings could be upgraded if the company achieves significant
profitable growth in total revenues and continued strong
system-wide and comparable club revenue growth while maintaining a
good liquidity profile. In terms of financial metrics, EBITA to
interest expense sustained above 4.0x and free cash flow-to-debt
above 8% could warrant consideration for a prospective ratings
upgrade.
The ratings could be downgraded if debt-to-EBITDA is sustained
above 5.0 times, or EBITA-to-interest expense approaches 2.0
times.
A material weakening of the company's liquidity profile and/or
additional debt-financed shareholder activities that result in
significantly higher leverage could lead to negative rating
actions.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
Headquartered in Hampton, NH, Planet Fitness Holdings, LLC
franchises and owns/operates fitness clubs across the US and
Canada, as well as in Puerto Rico and the Dominican Republic. As
of June 30, 2017, Planet Fitness had about 10.4 million members
and 1,403 locations in 48 states and the District of Columbia,
Canada, Puerto Rico and the Dominican Republic. More than 95% of
its locations are franchises. Trailing twelve-month revenues as of
June30, 2017 were about $402 million.
PUERTO RICO: AFL-CIO Files Adversary Complaint
----------------------------------------------
BankruptcyData.com reported that American Federation of State,
County & Municipal Employees (AFSCME), AFL-CIO filed with the U.S.
Bankruptcy Court an adversary complaint against the Financial
Oversight and Management Board for Puerto Rico; the Commonwealth
of Puerto Rico; the Puerto Rico Fiscal Agency and Financial
Advisory Authority and several Puerto Rico officials. The
plaintiffs allege, "AFSCME brings this action to secure and
protect the rights of its members, both active and retired
employees of the Commonwealth, for the purpose of obtaining
declaratory and injunctive relief to oppose the implementation of
austerity measures on Commonwealth employees and retirees through
furloughs and cuts to retirement income. The anticipated
furloughs and cuts are the product of an unauthorized and illegal
policy adopted by an unelected oversight board, to be imposed by
such Board over the objection of the Commonwealth's
democratically-elected governor.
Putting aside matters of Puerto Rican sovereignty and democratic
principles, these actions of the Board are illegal as they violate
the terms of PROMESA and exceed the statutorily-conferred
authority granted by PROMESA to the Board. AFSCME and its members
are invested in the Commonwealth's financial recovery and desire,
above all else, for it to thrive. Unlike some other of the
Commonwealth's creditors, the result of these Title III
proceedings will not be reflected merely by a line item adjustment
to a balance sheet, but will be endured by AFSCME members daily --
at home, work, and in retirement -- through a multitude of daily
lived experiences."
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70
billion, a 68% debt-to-GDP ratio and negative economic growth in
nine of the last 10 years.
The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.
The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III
of 2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ("PROMESA").
The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21. On July 2, 2017, a Title III case was commenced for the
Puerto Rico Electric Power Authority ("PREPA").
U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases. The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that
may be referred to her by Judge Swain, including discovery
disputes, and management of other pretrial proceedings.
Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are onboard as attorneys.
McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets
Inc. is the Board's municipal investment banker.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at:
https://cases.primeclerk.com/puertorico
Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.
O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.
The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.
Bondholders' Attorneys
Toro, Colon, Mullet, Rivera & Sifre, P.S.C. and Kramer Levin
Naftalis & Frankel LLP serve as counsel to the Mutual Fund Group,
comprised of mutual funds managed by Oppenheimer Funds, Inc.,
Franklin Advisers, Inc., and the First Puerto Rico Family of
Funds, which collectively hold over $3.5 billion in COFINA Bonds
and over $2.9 billion in other bonds issued by Puerto Rico and
other instrumentalities, including over $1.8 billion of Puerto
Rico general obligation bonds ("GO Bonds").
White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP,
Autonomy Capital (Jersey) LP, FCO Advisors LP, Franklin Mutual
Advisers LLC, Monarch Alternative Capital LP, Senator Investment
Group LP, and Stone Lion Capital Partners L.P.
Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.
Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ
Management II LP (the QTCB Noteholder Group).
Committees
The U.S. Trustee formed a nine-member Official Committee of
Retirees and a seven-member Official Committee of Unsecured
Creditors of the Commonwealth. The Retiree Committee tapped
Jenner & Block LLP and Bennazar, Garcia & Milian, C.S.P., as its
attorneys. The Creditors Committee tapped Paul Hastings LLP and
O'Neill & Gilmore LLC as counsel.
PUERTO RICO: Oversight Board Wants Insurers' Lawsuit Dismissed
--------------------------------------------------------------
Ryan Boysen, writing for Bankruptcy Law360, reports that the
oversight board tasked with steering Puerto Rico through its
bankruptcy-like process told the federal court that the
bond insurers Assured Guaranty Corp. and National Public Finance
Guarantee Corp., who are seeking to overturn the island's proposed
fiscal plan, have no standing and that their lawsuit must be
dismissed.
Law360 recalls that Assured Guaranty and National Public Finance
filed the lawsuit in May, claiming that Puerto Rico's fiscal plan
takes way too much off the top with its proposed haircuts for
bondholders.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70
billion, a 68% debt-to-GDP ratio and negative economic growth in
nine of the last 10 years.
The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.
The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III
of 2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ("PROMESA").
The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21. On July 2, 2017, a Title III case was commenced for the
Puerto Rico Electric Power Authority ("PREPA").
U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases. The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that
may be referred to her by Judge Swain, including discovery
disputes, and management of other pretrial proceedings.
Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are onboard as attorneys.
McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets
Inc. is the Board's municipal investment banker.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at:
https://cases.primeclerk.com/puertorico
Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.
O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.
The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.
Bondholders' Attorneys
Toro, Colon, Mullet, Rivera & Sifre, P.S.C. and Kramer Levin
Naftalis & Frankel LLP serve as counsel to the Mutual Fund Group,
comprised of mutual funds managed by Oppenheimer Funds, Inc.,
Franklin Advisers, Inc., and the First Puerto Rico Family of
Funds, which collectively hold over $3.5 billion in COFINA Bonds
and over $2.9 billion in other bonds issued by Puerto Rico and
other instrumentalities, including over $1.8 billion of Puerto
Rico general obligation bonds ("GO Bonds").
White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP,
Autonomy Capital (Jersey) LP, FCO Advisors LP, Franklin Mutual
Advisers LLC, Monarch Alternative Capital LP, Senator Investment
Group LP, and Stone Lion Capital Partners L.P.
Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.
Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ
Management II LP (the QTCB Noteholder Group).
Committees
The U.S. Trustee formed a nine-member Official Committee of
Retirees and a seven-member Official Committee of Unsecured
Creditors of the Commonwealth. The Retiree Committee tapped
Jenner & Block LLP and Bennazar, Garcia & Milian, C.S.P., as its
attorneys. The Creditors Committee tapped Paul Hastings LLP and
O'Neill & Gilmore LLC as counsel.
PUERTO RICO: Unions Protest Pay Cut for Public Employees
--------------------------------------------------------
Aldia News reports that Puerto Rico's major unions mounted a
protest against the demand from the federally appointed board
overseeing the finances of this US commonwealth that public
employees work two fewer days per month with a corresponding
reduction in pay.
Participants marched down various streets in Hato Rey, San Juan's
financial district, converging in front of the offices of the
Fiscal Oversight Board, known by the Spanish initials JSF,
according to Aldia News.
The JSF announced earlier that it would take Puerto Rico Gov.
Ricky Rossello to court over his rejection of the proposal for
public employee pay cuts, the report notes.
Organizers said that several thousand people took part in the
demonstration, which unfolded without any of the violence that
marked a May Day mobilization against the austerity policies
imposed on debt-laden Puerto Rico by the JSF, the report relays.
Shrinking the paychecks of state employees will have a negative
impact on the Puerto Rican economy, labor spokesman Luis Pedraza
Leduc told EFE, the report discloses.
Taking money out of the economy is the last thing Puerto Rico
needs after more than a decade of recession, he said, the report
notes.
"The salary reduction will lead government employees to reduce
their spending, which in turn hurts the companies that serve them,
such as the places where they buy lunch," Pedraza Leduc said, the
report relays.
Mr. Leduc said that the protest was also directed against a JSF
proposal that threatens the future pension benefits of some
300,000 public employees, the report notes.
The event concluded with a speech by the leader of the Utier
electrical workers union, Jaime Figueroa Jaramillo, who said that
Puerto Rico could not accept the dictates of the Washington-
imposed JSF, the report relays.
Utier has called a 24-hour strike against what it says is the
JSF's intention to privatize AEE, the heavily indebted state-owned
electric utility, the report discloses.
The JSF was established under the Puerto Rico Oversight,
Management and Economic Stability Act (Promesa), signed into law
in June 2016 by then-President Barack Obama, the report notes.
Puerto Rico, whose government owes more than $70 billion in bond
debt, also has nearly $50 billion in pension liabilities as a
consequence of the long recession, the report relays.
It also has suffered a massive exodus of its working-age
population, who as US citizens can freely relocate to the
mainland, the report adds.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70
billion, a 68% debt-to-GDP ratio and negative economic growth in
nine of the last 10 years.
The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.
The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III
of 2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ("PROMESA").
The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017. On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").
U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases. The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that
may be referred to her by Judge Swain, including discovery
disputes, and management of other pretrial proceedings.
Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.
McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets
Inc. is the Board's municipal investment banker.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at:
https://cases.primeclerk.com/puertorico
Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.
O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.
The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.
Bondholders' Attorneys
Toro, Colon, Mullet, Rivera & Sifre, P.S.C., and Kramer Levin
Naftalis & Frankel LLP serve as counsel to the Mutual Fund Group,
comprised of mutual funds managed by Oppenheimer Funds, Inc.,
Franklin Advisers, Inc., and the First Puerto Rico Family of
Funds, which collectively hold over $3.5 billion in COFINA Bonds
and over $2.9 billion in other bonds issued by Puerto Rico and
other instrumentalities, including over $1.8 billion of Puerto
Rico general obligation bonds ("GO Bonds").
White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP,
Autonomy Capital (Jersey) LP, FCO Advisors LP, Franklin Mutual
Advisers LLC, Monarch Alternative Capital LP, Senator Investment
Group LP, and Stone Lion Capital Partners L.P.
Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.
Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ
Management II LP (the QTCB Noteholder Group).
Committees
The U.S. Trustee formed a nine-member Official Committee of
Retirees and a seven-member Official Committee of Unsecured
Creditors of the Commonwealth. The Retiree Committee tapped
Jenner & Block LLP and Bennazar, Garcia & Milian, C.S.P., as its
attorneys. The Creditors Committee tapped Paul Hastings LLP and
O'Neill & Gilmore LLC as counsel.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Maduro Appoints New Chairman
----------------------------------------------------
forextv.com reports that the Venezuelan President Nicolas Maduro
disclosed changes to his cabinet, appointing a new oil minister
and a new chairman of the state-owned oil company PDVSA.
Eulogio Del Pino was appointed as new Oil Minister, while Nelson
Martinez was nominated to lead PDVSA, changing places one with
another, according to forextv.com.
"We have a firm proposition that we have been consulting with the
world and will soon be presenting to key leaders within the
Organization of the Petroleum Exporting Countries (OPEC) and non-
OPEC countries," the report quoted Mr. Maduro as saying.
Del Pino, who was in charge of PDVSA, will be responsible for
"international alliances, to advance at the summit of OPEC and
non-OPEC Heads of State for the regulation of oil and gas prices,"
said the Venezuela President, the report notes.
Mr. Martinez, who was Oil Minister, was designated to "working on
import substitution in the Venezuelan oil industry, improving
national refining capacity and strengthening alliances with the 40
companies that operate in the Orinoco Belt," according to a
statement released by PDVSA, the report relays.
As reported in the Troubled Company Reporter-Latin America on
Nov. 22, 2016, Moody's Investors Service assigned a Caa3 rating to
Petroleos de Venezuela, S.A. (PDVSA)'s 8.5% $3.4 billion in senior
secured notes due 2020. The outlook on the rating in negative.
On Oct. 28, 2016, PDVSA exchanged its 5.250% senior notes due 2017
and 8.50% senior notes due 2017 for 8.50% $3,367,529,000 senior
secured notes due in October 2020. The 2020 notes will be
amortized in four equal installments, starting in 2017. The 2020
notes are secured by a first-priority security interest on 50.1%
of the capital stock of CITGO Holding, Inc. (Caa1 stable) and are
unconditionally and irrevocably guaranteed by PDVSA Petroleo, S.A.
(unrated).
VENEZUELA: Bonds Get Harder to Trade Thanks to Sanctions
--------------------------------------------------------
Ben Bartenstein and Christine Jenkins at Bloomberg News report
that U.S. sanctions imposed on Venezuela put limits on new debt
from the country. But the Treasury Department's move is having
broader consequences in the bond market, where brokers taking a
cautious stance are limiting trades in existing notes, according
to Bloomberg News.
Depository Trust Company, a custodian for more than $35 trillion
of securities, temporarily put a block on services for Venezuelan
bond trades, and some dealers have also stopped buying and selling
the debt, Bloomberg News notes. Meanwhile, prices have fallen to
near the lowest in a year and rating agencies are cutting the
credit ever deeper into junk territory, Bloomberg News relays.
The CC grade for Venezuela at Fitch Ratings is the worst in the
world for any country that isn't in default.
"For many broker dealers who may not ordinarily deal with those
kinds of securities, it's simply not worth the risk," said Ronald
Meltzer, a senior counsel at Boston-based law firm WilmerHale who
focuses on compliance and enforcement matters tied to economic
sanctions, Bloomberg News discloses.
The sanctions have sparked confusion by imposing a blanket ban on
trading Venezuelan bonds, but at the same time carving out
exceptions that authorize transactions on almost all the country's
existing notes, leaving investors nervous they might inadvertently
run afoul of the rules, Bloomberg News relays. The Venezuelan
government and its state oil company have about $67 billion in
debt outstanding, and the notes are among the most-traded
securities in emerging markets, Bloomberg News notes.
DTC issued a notice that it had suspended all services, with the
exception of custody, on 35 Venezuelan securities, Bloomberg News
relays. It told investors it was reinstating service for 29 of
them, Bloomberg News says. An outside spokesman for the company
declined to comment.
Cantor Fitzgerald and its affiliates, GFI Group Inc. and BGC
Partners Inc., have stopped trading of all Venezuelan bonds,
according to four people familiar with the matter, Bloomberg News
notes.
Law firms published alerts to clients on various implications of
the sanctions. Cleary Gottlieb pointed out that it appeared
Venezuela wouldn't be able to sell its own holdings of Treasuries,
Bloomberg News relays. Latham & Watkins said U.S. nationals
should be cautious when dealing with the Venezuelan government,
noting that some officials are on U.S. blacklists, Bloomberg News
says.
President Nicolas Maduro said that U.S.-based holders of Venezuela
bonds would be hurt the most by the Trump administration's
sanctions, Bloomberg News adds.
As reported in the Troubled Company Reporter-Latin America on
Sept. 1, 2017, Fitch Ratings has taken the following rating
actions on Venezuela's sovereign ratings:
-- Long-term foreign and local currency IDRs downgraded to 'CC'
from 'CCC';
-- Senior unsecured debt downgraded to 'CC' from 'CCC';
-- Short-term foreign and local currency IDRs affirmed at 'C';
-- Country ceiling downgraded to 'CC' from 'CCC'.
=================
X X X X X X X X X
=================
* BOND PRICING: For the Week From Aug. 28 to Sept. 1, 2017
-----------------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
BA-CA Finance Cayman Lt 0.518 62.07 KY EUR
AES Tiete Energia SA 6.7842 1.109 4/15/2024 BR BRL
Argentina Bogar Bonds 2 39.36 2/4/2018 AR ARS
Automotores Gildemeister 8.25 73.25 5/24/2021 CL USD
Automotores Gildemeister 6.75 67 1/15/2023 CL USD
Automotores Gildemeister 8.25 73.25 5/24/2021 CL USD
Automotores Gildemeister 6.75 65.5 1/15/2023 CL USD
CA La Electricidad 8.5 63.664 4/10/2018 VE USD
Caixa Geral De Depositos 1.439 63.167 KY EUR
Caixa Geral De Depositos 1.469 KY EUR
CSN Islands XII Corp 7 68 BR USD
CSN Islands XII Corp 7 66.266 BR USD
Decimo Primer Fideicomiso 6 53.225 10/25/2041 PA USD
Decimo Primer 4.54 43.127 10/25/2041 PA USD
Dolomite Capital 13.217 73.108 12/20/2019 CN ZAR
Enel Americas SA 5.75 56.172 6/15/2022 CL CLP
Gol Linhas Aereas SA 10.75 35.861 2/12/2023 BR USD
Gol Linhas Aereas SA 10.75 35.601 2/12/2023 BR USD
Inversora Electrica 6.5 67.625 9/26/2017 AR USD
Inversora Electrica 6.5 67.625 9/26/2017 AR USD
MIE Holdings Corp 7.5 64.78 4/25/2019 HK USD
MIE Holdings Corp 7.5 64.982 4/25/2019 HK USD
NB Finance Ltd 3.88 61.816 2/7/2035 KY EUR
Noble Holding 7.7 74.433 4/1/2025 KY USD
Noble Holding 5.25 56.279 3/15/2042 KY USD
Noble Holding 8.7 71.881 4/1/2045 KY USD
Noble Holding 6.2 60.129 8/1/2040 KY USD
Noble Holding 6.05 58.38 3/1/2041 KY USD
Odebrecht Finance Ltd 7.5 42.5 KY USD
Odebrecht Finance Ltd 5.125 56.938 6/26/2022 KY USD
Odebrecht Finance Ltd 7 68.053 4/21/2020 KY USD
Odebrecht Finance Ltd 7.125 41.366 6/26/2042 KY USD
Odebrecht Finance Ltd 4.375 40.002 4/25/2025 KY USD
Odebrecht Finance Ltd 5.25 39.211 6/27/2029 KY USD
Odebrecht Finance Ltd 6 44.75 4/5/2023 KY USD
Odebrecht Finance Ltd 5.25 39.018 6/27/2029 KY USD
Odebrecht Finance Ltd 7.5 42.95 KY USD
Odebrecht Finance Ltd 4.375 40.363 4/25/2025 KY USD
Odebrecht Finance Ltd 7.125 41.635 6/26/2042 KY USD
Odebrecht Finance Ltd 6 52.625 4/5/2023 KY USD
Odebrecht Finance Ltd 5.125 55.873 6/26/2022 KY USD
Odebrecht Finance Ltd 7 67.368 4/21/2020 KY USD
Petroleos de Venezuela 8.5 74.5 10/27/2020 VE USD
Petroleos de Venezuela 6 30.458 5/16/2024 VE USD
Petroleos de Venezuela 6 30.517 11/15/2026 VE USD
Petroleos de Venezuela 9.75 35.677 5/17/2035 VE USD
Petroleos de Venezuela 9 39.279 11/17/2021 VE USD
Petroleos de Venezuela 5.375 30.267 4/12/2027 VE USD
Petroleos de Venezuela 8.5 72.5 10/27/2020 VE USD
Petroleos de Venezuela 12.75 45.278 2/17/2022 VE USD
Petroleos de Venezuela 6 30.367 5/16/2024 VE USD
Petroleos de Venezuela 6 30.387 11/15/2026 VE USD
Petroleos de Venezuela 9 39.316 11/17/2021 VE USD
Petroleos de Venezuela 9.75 35.893 5/17/2035 VE USD
Petroleos de Venezuela 6 28.346 10/28/2022 VE USD
Petroleos de Venezuela 5.5 30.123 4/12/2037 VE USD
Petroleos de Venezuela 12.75 45.23 2/17/2022 VE USD
Polarcus Ltd 5.6 75 3/30/2022 AE USD
Provincia del Chubut 4 10/21/2019 AR USD
Siem Offshore Inc 4.04527 69.5 10/30/2020 NO NOK
Siem Offshore 3.75176 65.75 12/28/2021 NO NOK
STB Finance 2.05771 56.243 KY JPY
Sylph Ltd 2.367 64.438 9/25/2036 KY USD
US Capital 1.63611 54.774 12/1/2039 KY USD
US Capital 1.63611 54.774 12/1/2039 KY USD
USJ Acucar 9.875 67 11/9/2019 BR USD
USJ Acucar 9.875 67 11/9/2019 BR USD
Venezuela 13.625 68.25 8/15/2018 VE USD
Venezuela 7.75 44.065 10/13/2019 VE USD
Venezuela 11.95 40.785 8/5/2031 VE USD
Venezuela 12.75 45.19 8/23/2022 VE USD
Venezuela 9.25 39.645 9/15/2027 VE USD
Venezuela 11.75 40.005 10/21/2026 VE USD
Venezuela 9 36.285 5/7/2023 VE USD
Venezuela 9.375 37.69 1/13/2034 VE USD
Venezuela 13.625 72.25 8/15/2018 VE USD
Venezuela 7 34.23 3/31/2038 VE USD
Venezuela 7 59.19 12/1/2018 VE USD
***********
Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades. Prices
for actual trades are probably different. Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind. It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.
Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
Submissions about insolvency-related conferences are encouraged.
Send announcements to conferences@bankrupt.com
***********
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 2017. 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 or Joseph Cardillo at
856-381-8268.
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