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/raid1/www/Hosts/bankrupt/TCRLA_Public/180402.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, April 2, 2018, Vol. 19, No. 64 Headlines A R G E N T I N A BANCO DE GALICIA: Moody's Affirms B3 Global FC Sub. Debt Rating BANCO DE GALICIA: Moody's Affirms B2 Global LC Deposit Rating BANCO MACRO: Moody's Assigns B2 Rating to Class C Sr. Unsec. Debt BANCO SANTANDER: Moody's Assigns Ba3 Global LC Senior Debt Rating B O L I V I A CREDINFORM INT'L: Moody's Hikes Global Scale LC IFS Rating to B2 B R A Z I L BRAZIL: Budget Shortfall Narrowed in February VALID SA: Moody's Rates BRL200MM Senior Unsecured Debentures Ba2 D O M I N I C A N R E P U B L I C GOLDQUEST DOMINICANA: Ministry Says its Decisions "Based on Law" J A M A I C A JAMAICA: A Major Shakeup in Country's Cabinet M E X I C O GRUPO KALTEX: Fitch Cuts Long-Term IDR to B-; Keeps Negative Watch P U E R T O R I C O SPANISH BROADCASTING: Bluestone Holds 14.5% Stake as of March 1 TOYS R US: Gets Court's Nod on Winddown of 735 US Stores T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: IMF Points to Weaknesses in Tax Administration X X X X X X X X X * BOND PRICING: For the Week From March 26 to March 30, 2018 - - - - - ================= A R G E N T I N A ================= BANCO DE GALICIA: Moody's Affirms B3 Global FC Sub. Debt Rating --------------------------------------------------------------- Moody's Investors Service has affirmed Banco de Galicia y Buenos Aires S.A.'s senior unsecured debt program and the foreign currency subordinated debt rating. The action followed the announcement made by Moody's Latin America Agente de Calificacion de Riesgo S.A. (MLA) that it has affirmed all the bank's ratings and assessments (see press release "Moody's Latin America affirms Galicia's ratings; stable outlook"). The rating action follows the conclusion of the corporate restructuring, which resulted in the spin off of Galicia's credit card subsidiary, Tarjetas Regionales (unrated), and its incorporation into Grupo Financiero Galicia (GFG, unrated), a financial services holding company that owns 100% of Galicia's capital. The following debt ratings of Banco de Galicia y Buenos Aires S.A. were affirmed: Global Local Currency Senior Unsecured MTN Rating at (P)B2 Global Foreign Currency Senior Unsecured MTN Rating at (P)B2 Global Foreign Currency Subordinated Debt Rating at B3 RATINGS RATIONALE The affirmation of Galicia's debt ratings incorporates Moody's views that the corporate restructuring has had a neutral effect on Galicia's capital, while benefiting the bank's future asset risk metrics. In addition, Galicia's ratings are supported by a diversified loan portfolio that ensures adequate asset quality, increasing capital, and access to funding through its broad banking franchise. The ratings also capture Argentina's still challenging operating environment. The recent restructuring entailed a capital contribution of approximately $500 million by GFG to Galicia late in 2017, followed by the split of part of Galicia's equity corresponding to its 77% interest in Tarjetas Regionales. As a result of the spinn off, Galicia's tangible common equity to adjusted risk weighted assets is now estimated at around 10.1%, from 11.3% as of year-end 2017. By virtue of its focus on credit cards and personal loans, Tarjetas Regionales' asset quality metrics have been traditionally weaker than Galicia's, whose non-performing loans are in line with the systems' average, at around 2%. Galicia's loan book will maintain a large share of consumer loans, including credit cards and mortgages, but the quality of its borrowers will continue to be higher than those targeted by Tarjetas Regionales, as the bank focuses on the upper consumer segment and gradually increases its exposure to corporate credit. Galicia has expanded its loan book more rapidly than the system and intends to grow further, in response to the expected demand triggered by a sustained economic growth. Galicia's profitability, measured as net income to tangible assets ,was 2.1% in 4Q17, which is above the average of its peers'. Its net interest margins, however, are lower than peers, despite predominant higher yielding assets, and reflecting increasingly higher cost of funding, as loans grow faster than deposits. Moody's expect manageable credit cost and increased lending volume will help offset margins compression in the coming quarters. Galicia's assets are largely core deposit funded, with retail deposits accounting for 60% of total. In 2017, lending expanded 18% in real terms, far outpacing the growth in deposits, which rose about 10% in real terms. Moody's expect this trend to increase competition for deposits and to raise the cost of funding, both for Galicia and its peers. As a result, the bank's relatively good liquidity position is being pressured. Despite tapping international bond markets in recent years, Galicia's reliance on market funds is modest, accounting for 13% of tangible assets as of year-end 2017. WHAT COULD CHANGE THE RATING UP/DOWN An upward pressure on Galicia's debt rating will likely depend upon further improvement in Argentina's government bond rating. Conversely, the rating would face downwards pressure if the sovereign rating were lowered. The ratings could also be negatively affected if the bank suffers a substantial deterioration in asset quality, earnings, and/or capitalization. The principal methodology used in these ratings was Banks published in September 2017. BANCO DE GALICIA: Moody's Affirms B2 Global LC Deposit Rating ------------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo S.A. (MLA) has affirmed all ratings and assessments of Banco de Galicia y de Buenos Aires S.A., including its B2 global local currency deposit rating and its B3 foreign currency deposit rating. The Argentinean national scale deposit ratings of A1.ar in local currency and Baa1.ar in foreign currency were also affirmed. Moody's also affirmed the bank's baseline credit assessment and adjusted baseline credit assessment of b2, the counterparty risk assessment of B1(cr)/Not Prime (cr), and all remaining short-term ratings assigned to Galicia. The rating action follows the conclusion of the corporate restructuring, which resulted in the spin-off of Galicia's credit card subsidiary, Tarjetas Regionales (unrated), and its incorporation into Grupo Financiero Galicia (GFG, unrated), a financial services holding company that owns 100% of Galicia's capital. All the ratings have stable outlook. The following ratings and assessment were affirmed: -- Local currency long term and short term bank deposit rating of B2, stable/Not Prime -- Foreign currency long term and short term bank deposit rating of B3, stable /Not Prime -- Argentina long-term national scale local currency bank deposit rating of A1.ar, stable -- Argentina long-term national scale foreign currency bank deposit ratings of Baa1.ar, stable -- Long term and short term Counterparty Risk Assessment of B1(cr)/Not Prime(cr) -- Baseline Credit assessment of b2 -- Adjusted Baseline Credit assessment of b2 Outlook Actions: -- Outlook, Remains Stable RATINGS RATIONALE The affirmation of Galicia's ratings incorporates Moody's views that the corporate restructuring has had a neutral effect on Galicia's capital, while benefiting the bank's future asset risk metrics. In addition, Galicia's ratings are supported by a diversified loan portfolio that ensures adequate asset quality, increasing capital, and access to funding through its broad banking franchise. The ratings also capture Argentina's still challenging operating environment. The recent restructuring entailed a capital contribution of approximately $500 million by GFG to Galicia late in 2017, followed by the split of part of Galicia's equity corresponding to its 77% interest in Tarjetas Regionales. As a result of the spin off, Galicia's tangible common equity to adjusted risk weighted assets is now estimated at around 10.1%, from 11.3% as of year-end 2017. By virtue of its focus on credit cards and personal loans, Tarjetas Regionales's asset quality metrics have been traditionally weaker than Galicia's, whose non-performing loans are in line with the systems' average, at around 2%. Galicia's loan book will maintain a large share of consumer loans, including credit cards and mortgages, but the quality of its borrowers will continue to be higher than those targeted by Tarjetas Regionales, as the bank focuses on the upper consumer segment and gradually increases its exposure to corporate credit. Galicia has expanded its loan book more rapidly than the system and intends to grow further, in response to the expected demand triggered by a sustained economic growth. Galicia's profitability, measured as net income to tangible assets, was 2.1% in 4Q17, which is above the average of its peers'. Its net interest margins, however, are lower than peers, despite predominant higher yielding assets, and reflecting increasingly higher cost of funding, as loans grow faster than deposits. Moody's expect manageable credit cost and increased lending volume will help offset margins compression in the coming quarters. Galicia's assets are largely core deposit funded, with retail deposits accounting for 60% of total. In 2017, lending expanded 18% in real terms, far outpacing the growth in deposits, which rose about 10% in real terms. Moody's expect this trend to increase competition for deposits and to raise the cost of funding, both for Galicia and its peers. As a result, the bank's relatively good liquidity position is being pressured. Despite tapping international bond markets in recent years, Galicia's reliance on market funds is modest, accounting for 13% of tangible assets as of year-end 2017. WHAT COULD CHANGE THE RATING UP/DOWN An upward pressure on Galicia's ratings will likely depend upon further improvement in Argentina's government bond rating. Conversely, the ratings would face downwards pressure if the sovereign rating were lowered. The ratings could also be negatively affected if the bank suffers a substantial deterioration in asset quality, earnings, and/or capitalization. The principal methodology used in these ratings was Banks published in September 2017. BANCO MACRO: Moody's Assigns B2 Rating to Class C Sr. Unsec. Debt ----------------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo S.A. (MLA) has assigned a B2 global scale and A1.ar national scale local currency debt ratings to Banco Macro S.A. (Macro)'s Class C senior unsecured debt for up to ARS4,000 million, which will due in 2021. The debt ratings have a stable outlook. The following ratings were assigned to Banco Macro S.A.: Class C notes for up to ARS 4,000 million, due in 2021 B2 Senior Unsecured Global Scale Local Currency debt rating A1.ar Senior Unsecured National Scale Local Currency debt Rating RATINGS RATIONALE The B2 global scale and A1.ar national scale rating incorporates the challenges related to Argentina's operating environment, which though improving, continue to be volatile, and outweigh Macro's strong financial fundamentals, including above-peers' profitability and capitalization, a diversified lending mix, and solid asset quality metrics. The bank has a well-established franchise as one of the largest domestically-owned private banks in Argentina, acting as the financial agent of four provinces, and providing a range of banking services to large corporations, small and medium sized companies, and households. Macro's profitability, measured as net income relative to tangible assets, at 4.19% as of YE2017, far exceeds that of its peers, and it benefits from access to lower cost core deposits from its retail and corporate customers and active cross selling to its client base. Consequently, Moody's expect Macro will be well positioned to absorb any increase in real funding costs that will derive from lower inflation and increasing competition for deposits, as loan demand increases.. The bank's nonperforming loan ratio of just 1.08% and loan loss reserve coverage of more than 181% reveal conservative risk management practices. With tangible common equity equal to a very strong 20.3% of adjusted risk-weighted assets, and among the highest in the system, Macro has ample capacity to expand in real terms as Argentina's economy recovers. In 2017 the bank did a global primary follow-on offering raising $765 million. Macro is largely core funded, with a solid base of granular and stable low cost deposits. Deposits make up nearly 80% of total funding. These credit strengths are reflected in the A1.ar NSR, which is the highest of the three NSR categories in Argentina that correspond to the B2 Global Scale Rating, and consequently equal to the highest NSR assigned to any domestically-owned Argentine bank. What could move the rating up or down Upward ratings pressure will likely depend upon further improvement of Argentina's government bond rating. On the other hand, the ratings would face downwards pressure if the sovereign rating were lowered. The ratings could also be negatively affected if Macro suffers a substantial deterioration in asset quality, earnings, and/or capitalization. The principal methodology used in these ratings was Banks published in September 2017. BANCO SANTANDER: Moody's Assigns Ba3 Global LC Senior Debt Rating ----------------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo S.A. (MLA) has assigned a Ba3 global local currency senior debt rating and a Aaa.ar national scale local currency debt rating to Banco Santander Rio S.A.'s (Santander Rio) 23rd issuance of pesos equivalent to up to $500 million, maturing in 15 months. The ratings carry a stable outlook. The following ratings were assigned to Banco Santander Rio S.A.'s expected issuances: Class XXIII in pesos up to the equivalent of $500 million: Ba3 Senior Unsecured Global Local Currency Debt Rating Aaa.ar Senior Unsecured Argentina National Scale local Currency Debt Rating RATINGS RATIONALE Moody's said that Santander Rio's ratings incorporate the high probability that the bank will receive financial support from its parent, Banco Santander S.A. (Spain) (Santander, A3, stable, baa1), in an event of stress. The benefits from parental support offset challenges related to Argentina's operating environment, which while improving has historically been very volatile. As a result of these challenges, coupled with the close credit linkages with between banks and their sovereigns, Santander's standalone credit profile is constrained at the level of Argentina's B2 sovereign rating, notwithstanding its sound financial fundamentals. Santander Rio continues to boast good earning generation capacity supported by diversified lines of business and an inexpensive and highly granular deposit base linked to payroll accounts. Despite declining steadily over the last years, net income remained strong at 1.69% of tangible assets in 2017. Profitability should be supported by the bank's acquisition early last year of Citibank's retail business. The acquisition, which added 518,000 retail clients and 70 offices to Santander Rio's network, enlarged its footprint among high income retail clients and strengthened its position as the largest private bank in Argentina. However, the acquisition had negative efffect on capitalization. Largely due to the increase in risk-weighted assets growth generated by the acquisition, tangible common equity fell to 9.53% of adjusted risk-weighted assets as of YE 2017, from 13.17% as of YE 2016. Although capital remains moderate by global standards, it is now below that of local peers. The bank's prudent risk management practices and diversified loan portfolio in the corporate and consumer lending segments supports good asset quality. In the consumer segment, the bank has a significant focus on payroll-linked loans and targets high and medium income individuals. While nonperforming loans nevertheless rose to 2.39% of gross loans by 2017, up from 1.2% in year-end 2016, loan loss reserve coverage remained adequate at 109.48% of nonperforming loans. WHAT COULD CHANGE THE RATING UP/DOWN The Ba3 global rating would face upward pressure if Argentina's sovereign rating were upgraded. Conversely, the global scale ratings would face downward pressure if the government of Argentina were to be downgraded, and both the global and national scale ratings could be lowered if the entity's capital base, profitability, and/or asset quality were to deteriorate significantly. The principal methodology used in these ratings was Banks published in September 2017. ============= B O L I V I A ============= CREDINFORM INT'L: Moody's Hikes Global Scale LC IFS Rating to B2 ---------------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo (MLA) has upgraded Seguros y Reaseguros Credinform International (Credinform)'s global scale (GS) local-currency insurance financial strength (IFS) rating to B2 from B3 and its national scale (NS) IFS rating to Baa1.bo from Baa3.bo. The outlook on both the GS and NS ratings remains stable. RATINGS RATIONALE According to Moody's, Credinform's ratings upgrade primarily reflect recent improvement on its credit profile, particularly in its capital adequacy. As of 2017 year-end, the company wrote-off 100% of reinsurance recoverables that are in an arbitration process with uncertain possibility of recovery. This represents a significant improvement compared to year-end 2014, when those recoverables had been written off by only 20%, and represented 75% of the company's capital. Credinform's capital position was also underpinned by 1) a capital injection made in 2016 of BOB 28 million, 2) strong profitability reported over the last three years, 3) a reduction in the company's business volume, and 4) a conservative dividend policy, all of which supported a reduction (improvement) in the company's gross underwriting leverage to 4.4 times by 2017 year-end, from 6.2x at 2016 year-end, and 9.2x by 2015 year-end. The rating agency noted that during 2017, Credinform's net premiums were down 15% from 2016, primarily because the company exited the mandatory automobile business, given that the state-owned insurer Seguros y Reaseguros Personales UNIVIDA S.A (B1 stable) is the only insurer authorized to provide such coverage from 2017. Moody's went on to say that the upgrade of Credinform's national scale IFS rating to Baa1.bo from Baa3.bo, which is in the middle of the range of possible NS ratings given its B2 GS rating, reflects that the company's credit profile compares similarly to the average of other B2-rated Bolivian issuers. Moody's noted, however, that these positive factors are significantly tempered by the company's still high asset-quality risk, with high exposure to real estate assets, its poor historical reserve adequacy, and systemic country-specific risk of Bolivia. Among factors that could lead to a further upgrade of Credinform's ratings, Moody's mentioned the following: 1) improvement and maintenance of its capital position, with a gross underwriting leverage consistently below 4x; 2) stronger reserve adequacy; and 3) improvement in asset credit quality, with lower exposure to real estate. Conversely, factors that could lead to a rating downgrade include one or more of the following: 1) gross underwriting leverage steadily above 7x shareholders' equity, and/or failure to comply with local capital regulatory requirements; 2) significant reduction in company's market share; 3) sustained decline in profitability; or 4) significant deterioration in Bolivia's government bond rating and/or the country's operating environment. The principal methodology used in these ratings was Global Property and Casualty Insurers published in May 2017. Based in La Paz, Credinform reported a net profit of BOB 11 million, and gross premiums written of BOB 317 million in 2017. As of December 2017, total assets were BOB 442 million and shareholders' equity was BOB 143 million. =========== B R A Z I L =========== BRAZIL: Budget Shortfall Narrowed in February --------------------------------------------- Paulo Trevisani at The Wall Street Journal reports that Brazil's budget deficit narrowed in February, the central bank said, as shrinking borrowing costs bring relief to government debt. The 12-month deficit was 7.34% of gross domestic product, narrower than the 7.49% of GDP shortfall recorded in January, according to The Wall Street Journal. The so-called primary budget result, which excludes interest payments, was a deficit of 1.43% of GDP in the 12-month period through February, compared with a deficit of 1.53% of GDP in the year ended in January, the report notes. Brazil's gross debt was at 75.1% of GDP in February, up from 74.5% of GDP in January, the report adds. As reported in the Troubled Company Reporter-Latin America on Feb. 28, 2018, Fitch Ratings has downgraded Brazil's Long-Term Foreign Currency Issuer Default Rating (IDR) to 'BB-' from 'BB' and revised the Rating Outlook to Stable from Negative. VALID SA: Moody's Rates BRL200MM Senior Unsecured Debentures Ba2 ---------------------------------------------------------------- Moody's America Latina assigned a Ba2 (global scale) and Aa3.br (national scale) rating for Valid S.A.' BRL 200 million senior unsecured debentures issued in 2016 and due 2019. The outlook for the ratings is negative. Ratings assigned: Issuer: Valid S.A. - BRL 200 million senior unsecured debentures due 2019: Ba2 (global scale) and Aa3.br (national scale) The outlook for the ratings remains negative. RATINGS RATIONALE Valid's Ba2/Aa3.br ratings reflect the company's strong market position in all of its operating segments, including the one as Brazil's leading supplier of plastic cards for payment transactions and ID systems, SIM cards and digital certificates, as well as its position as the 5th largest SIM card producer globally. The ratings are also supported by the company's long- term client relationships with financial institutions, state governments, and telecommunications companies, and the growth of value-added products in its product portfolio, namely data management services and proprietary software. Finally, the ratings incorporate the company's adequate leverage and liquidity, despite the weaknesses observed in its operating performance since 2016. On the other hand, the ratings are constrained by (i) Valid's small size in comparison to global peers; (ii) the still challenging operating performance outlook, especially for the telecom segment; (iii) its reliance on a small group of large clients in banking and telecom; (iv) and the relatively low barriers to the entry in the plastic and SIM cards sector - although the ID system sector has high entry barriers. Risks associated with the development of new technologies that would make Valid's existing products obsolete and the company's acquisitive growth strategy are additional constraining factors. Still, Valid has a proven track record of quickly adapting its product offering to new technologies and of successfully integrating acquisitions. The company's increased dependence on Brazil's domestic market as a result of a weaker operating performance in the telecom and means of payments divisions abroad is an additional negative consideration, since it leaves the company exposed to economic cycles in the country. In 2017, approximately 65% of the company's total EBITDA came from Brazil's ID segment, which is highly correlated with Brazil's local and regional governments fiscal conditions. Valid has historically posted stable adjusted EBITDA margins in the 20-22% range, while maintaining adjusted leverage around 2.0x. Since the beginning of 2016, however, the company was negatively affected by both the severe recession in Brazil hurting the ID and Latam means of payment segments, as well as an overstocking of EMV cards by banks in the US, which dragged the performance of the US means of payment division down. This came at a time of declining prices for the telecom segment and while the company was integrating the acquisition of Fundamenture. As such, Valid's adjusted EBITDA margins fell to 16-17% in 2016 and 2017, while adjusted leverage increased to around 3.0x. Going forward, Moody's expect gradual improvements in the company's consolidated operating and financial performances coming from (i) cost saving initiatives, such as the consolidation of plants in Brazil and in the US; (ii) synergy gains with Fundamenture; (iii) normalized organic growth rates coming from a gradual recovery in the company's Brazilian and US businesses, and market share gains in the telecom segment, especially in Asia; and (iv) lower working capital requirements following a period of receivables and inventories build-up. All these initiatives should contribute to a higher cash generation and lower leverage in 2018, but Valid still faces challenges related to the commoditization of SIM cards in the telecom segment and to a general migration of hardware technologies to software in virtually all of its lines of business. The company's liquidity profile remains adequate, with BRL 314 million in cash covering short term debt maturities of BRL 254 million by 1.2x at the end of 2017. Moody's believe Valid will likely pursue liability management initiatives to lengthen its debt amortization schedule, which is currently heavily concentrated in 2018-19. Furthermore, Moody's expect the company to maintain its conservative approach to leverage and liquidity, adjusting its dividend pay-out and expansion plans to its cash generation, thus preserving its liquidity profile. The negative outlook on Valid's ratings reflects the company's weakened credit metrics coming from specific events in each of its lines of business, as well as the negative outlook on Brazil's sovereign ratings. Although unlikely in the short term, the ratings would experience upward pressure if the company increases its scale and further diversifies its geographic and client base while maintaining total adjusted debt to EBITDA below 2.0x (3.1x in 2017), adjusted EBITA to interest expense above 4.0x (2.0x in 2017) and healthy liquidity. An upgrade of Brazil's sovereign rating would also be required for an upgrade of Valid's ratings. The ratings could be downgraded if the company's operating performance remains weak during 2018, causing revenue growth to stagnate and debt metrics to weaken, with total adjusted debt to EBITDA above 3.0x and negative free cash flow generation without prospects for recovery. Any sizable debt-financed acquisition would also affect the rating negatively. Finally, given the company's increased dependence on Brazil's regional and local governments to generate cash, a downgrade of Brazil's sovereign ratings would result in a downgrade of Valid's ratings. The principal methodology used in these ratings was Business and Consumer Service Industry published in October 2016. =================================== D O M I N I C A N R E P U B L I C =================================== GOLDQUEST DOMINICANA: Ministry Says its Decisions "Based on Law" ---------------------------------------------------------------- Dominican Today reports that the Ministry of Energy and Mines said that the ruling by the judge of the court of first instance in San Juan de la Maguana which ordered a halt to mining work by GoldQuest Dominicana must be heard by the competent jurisdiction. "The Ministry of Energy and Mines is respectful of institutions, so we believe that the decision by a judge of first instance ordering the departure of GoldQuest from San Juan de la Maguana should be explained in the appropriate forum as established by our legal system. "It is worth highlighting that all decisions by the Ministry of Energy and Mining are framed in legality and pass through strict compliance with the roles assigned by the procedural law and the Constitution," it concludes, without providing further detail, the report notes. After accepting the suit filed by the Unified Agricultural Committee, Judge Dante Almonte ordered a halt to all mining work by GoldQuest in the municipality until the Ministry of Environment and Natural Resources issues an environmental impact certification to authorize mining in the higher areas of the valley in this province, the report relays. Local groups are opposed to the mining, the report notes. A statement from GoldQuest confirms that the company "has been advised that the Penal Chamber of the First Instance Court of the Judicial District of San Juan de la Maguana has reached a decision in response to a Constitutional Injunction Remedy filed by a group of individuals in the Dominican Republic against the Company's wholly owned subsidiary, GoldQuest Dominicana SRL," the report says. According to GoldQuest, "the only information the Company has at this time regarding the Decision is a verbal summary of the Decision that was delivered by a Court clerk, the report notes. The written Decision of the Court, including the reasons for the Decision, has not yet been issued and is expected in approximately one week, the report says. The summary of the Decision is unclear in a number of respects and the Company is seeking to clarify the Decision with the Court," adds Dominican Today. The report discloses that the company statement continues: "The summary of the Decision included a requirement that the Company suspend its activities at its Romero Project until certain certificates and licenses are issued in favor of the Company. The Company is seeking to clarify which certificates and licenses must be obtained before its activities can be re-commenced. In addition, based on the information currently available, the Company is not able to determine the extent of its activities that must be suspended or the exact area the Decision pertains to. "Once the Company has more information regarding the Decision it will work with its local counsel to consider its next steps and the possibility of challenging the Decision. "The Company will issue a further news release once it has additional information regarding the Decision." ============= J A M A I C A ============= JAMAICA: A Major Shakeup in Country's Cabinet --------------------------------------------- Caribbean360.com reports that Prime Minister Andrew Holness has reshuffled his Cabinet, making major changes to some vital ministries, including bringing in a recently elected MP to be the new Minister of Finance and replacing his Minister of National Security. The changes see Dr. Nigel Best, who won the by-election in St. Andrew North West earlier, becoming the new Minister of Finance and the Public Service, according to Caribbean360.com. Audley Shaw, who he replaced, has been reassigned to the Ministry of Industry, Commerce, Agriculture and Fisheries which was previously led by Karl Samuda, who now moves to the Ministry of Economic Growth and Job Creation, the report notes. Dr. Horace Chang, who was previously a Minister without portfolio in the Ministry of Economic Growth and Job Creation, will now take the ministerial lead in the crime fight as the new Minister of National Security, the report relays. Robert Montague, who previously held that position, is now Minister of Transport and Mining, while Mike Henry who had responsibility for Transport and Mining moves to the Office of the Prime Minister, as Minister without portfolio, the report says. Other changes see Fayval Williams appointed Minister without portfolio in the Ministry of Finance and the Public Service. She previously held the post of Minister of State in the Ministry of Finance and the Public Service, the report notes. The Prime Minister also disclosed changes in the junior Minister ranks, the report relays. Alando Terrelonge is to be appointed Minister of State in the Ministry of Culture, Gender, Entertainment and Sports; and Zavia Mayne is to be appointed Minister of State in the Ministry of Labor and Social Security, the report relays. Pearnel Charles Jr. moves to the Ministry of Foreign Affairs and Foreign Trade, the report says. He previously held the post of State Minister in the Ministry of National Security, the report notes. Rudyard Spencer, former Minister of State in the Ministry of Finance and the Public Service, moves to the Ministry of National Security, the report relays. Prime Minister Holness says other members of the Cabinet remain in their respective portfolios, the report adds. As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2018, Fitch Ratings has affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B' and has revised the Rating Outlook to Positive from Stable. =========== M E X I C O =========== GRUPO KALTEX: Fitch Cuts Long-Term IDR to B-; Keeps Negative Watch ------------------------------------------------------------------ Fitch Ratings has downgraded Grupo Kaltex, S.A. de C.V. (Grupo Kaltex) Long-Term Local and Foreign Currency Issuer Default Ratings (IDRs) to 'B-' from 'B'. Fitch has also downgraded the company's USD320 million senior secured notes due 2022 to 'B- '/'RR4' from 'B'/'RR4'. The ratings remain on Negative Watch. The ratings downgrades reflect Fitch's view of the company's tight liquidity compared to debt service and short-term debt. Cash balance at the end of the year 2017 was MXN545 million, with short-term debt of MXN 943 million (approximately MXN555 million correspond to revolving credit lines) and an interest coupon payment of USD14.2 million in April 11, 2018. During 2017, EBITDA deterioration led to a reduction in interest coverage, measured as EBITDA to interest expense to 1.7x from 4.8x in 2016. Grupo Kaltex's operations should stabilize, although at a weaker level than originally anticipated by Fitch; management has implemented pricing initiatives and cost cutting measures to offset 2017's bad performance. The Negative Watch reflects Fitch's assumption that the company will meet interest payments and remain reliant on the completion of asset sales of approximately USD25 million during the second quarter of 2018 to strengthen its liquidity position, and to support operations and financial profile. Any indication of delays in this process will result in additional downgrades. The ratings also reflect the company's exposure to the cyclicality of the textile industry, level of consumer demand, input cost prices volatility, limitation of transferring cost increases into prices in a rapid manner and absence of long-term customer contracts. In addition, the ratings take into account Grupo Kaltex's revenue diversification, good commercial relations with top quality customers and its position as the fourth global largest denim player in terms of installed capacity. Furthermore, the ratings reflect the company's positive free cash flow generation. KEY RATING DRIVERS Lower Profitability from Operational and Cost Pressures: During 2017, deficiencies in inventory management, lower sales volumes in the company's different divisions and increased main inputs costs (such as cotton, energy, natural gas, fibers and chemicals), decreased Grupo Kaltex's EBITDA generation to MXN1,214 million from MXN2,034 million reported as of Dec. 31, 2016. This also decreased the EBITDA margin to 7.1% from 11.6%. This margin is lower than Fitch's previous expectation of 11.5% in 2017 and 11.1% in 2018. Increased Leverage Reduces Flexibility: The company recorded an adjusted leverage level, measured as total adjusted debt for operating leases over EBITDAR of 6.2x at the end of 2017 (5.9x in USD terms). Fitch projects that this ratio would reach 5.7x at the end of 2018 and 2019, and 5.6x at the end of 2020. These values are higher than Fitch's previous expectation of around 4.4x in 2018 and 4.0x in 2019. Management is currently working in asset sales, in the form of available land. Proceeds are intended to reduce debt levels and support operations. In its base case, Fitch is not including these potential cash flows until they are apparent. Exposure to Cyclical Industry: The ratings reflect the company's exposure to the cyclicality of the textile industry, level of consumer demand, input cost prices volatility, inability to transfer cost increases into prices rapidly and absence of long- term customer contracts. The company's operations depend on several variables impacting discretionary consumer spending, including general economic conditions, consumer confidence, wages and unemployment, consumer debt, interest rates, taxation and political conditions. A decline in the discretionary consumer spending may cause volatility in its sales volume. The entity is exposed to input cost prices volatility and is unable to rapidly transfer cost increases into prices. Regarding cotton, Grupo Kaltex passes along significant changes in cotton prices to its customers with a 90 day lag. Other costs increases that affect the company's financial position are energy, natural gas, fibers and chemicals. Fitch believes that as Grupo Kaltex manages to mitigate input cost prices volatility, its financial position could be strengthened. The company has revenue concentration with two customers, who represent close to 15% of total revenues in average, which increases Grupo Kaltex's operational risk should the customer experience weak performance or decides to shift to a different supplier. Grupo Kaltex operates on an order by order basis and is exposed to the risk that customers could rapidly shift to other suppliers. Textile companies usually do not have long-term contracts with their customers. Business Diversification: Grupo Kaltex's cash flow and profitability are supported by a diversified revenue base, operating vertical integration and product offerings. The company has diversified revenue by product type and geographic market, which reduces the risk of concentration in one segment of the textile industry, and to partially mitigate for adverse economic cycles in a particular region. The company produces synthetic fibers, yarn, piece dye, denim, garments, apparel and textile home products that are used in different segments of the textile industry. As part of its production process, Grupo Kaltex sells products to third parties and for self-consumption in each point of the supply chain. During 2017, 56% of Grupo Kaltex's total revenues were generated in Mexican pesos, 39% in U.S. dollars, and 5% in Colombian pesos. Fourth Global Largest Denim Player: The company is the fourth global largest denim player in terms of installed capacity, which gives the company the ability to fulfil volume requirements from important customers. However, the entity faces intense competition from domestic and foreign yarn producers, and importers of textile and apparel products. Grupo Kaltex's competitive advantages from foreign producers and importers include the geographical proximity to main markets in North America, responsiveness and service (make-to-make order products), besides the tariffs in place intended to protect illegal imports of textiles into Mexico. Grupo Kaltex is strategically positioned to supply the North and South American regions. The company has a competitive advantage compared to Asian manufacturers in terms of time-to- market and cost of freight to sell its products in Mexico and U.S. markets. Time-to-market has become critical to retailers as fashion trends have become more dynamic (fast fashion). DERIVATION SUMMARY Kaltex's business position is limited by its inability to transfer cost increases into prices rapidly; this weak pricing power results in higher volatility of cash flows. The company's liquidity position is tight compared to debt service and short- term debt. Grupo IDESA, S.A. de C.V. (IDESA) (B-/Outlook Negative) faces pressures on its capital structure resulting from a weakening in its standalone credit profile and its tight liquidity. The company's deteriorated financial metrics pressure its credit profile in the low 'B' category. Kaltex's scale of operation, financial profile, profitability and leverage levels compare unfavorably to denim companies in the 'BB' category, such as Levi Strauss & Co. and L Brands, Inc. KEY ASSUMPTIONS Fitch's Key Assumptions Within Fitch Rating Case for the Issuer - Revenue of approximately MXN17,400 million average over the next four years; - EBITDA margin about 7.4% in average; - Capex of approximately 3.0% over sales; - Capex funded with cash flow from operations; - Adjusted Debt/EBITDAR levels around 5.5x over the next four years. The recovery analysis assumes that Grupo Kaltex would be considered a going-concern in bankruptcy and that the company would be reorganized rather than liquidated. Fitch has assumed a 10% administrative claim. The going-concern EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the valuation of the company. Fitch assumes that a continued inability to offset cost increases and a tougher operating environment within the NAFTA region can result in further erosion of Kaltex's EBITDA and cash balance. The post-reorganization EBITDA assumption is MXN728 million, which represents close to 40% of discount to the LTM EBITDA as of Dec. 31, 2017, reflecting a distressed level of revenue generation across business lines. An EV multiple of 4x was used to calculate a post-reorganization valuation based in a distressed company profile in a low growth industry in Latin America. Fitch calculates the recovery prospects for the senior secured notes in the 31% to 50% range based on a waterfall approach. This level of recovery results in the company's senior secured notes being rated the same as its IDR of 'B-'/'RR4'. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action -- Improved liquidity profile in the form of equity injections or asset sales; -- FFO and EBIT margins above 5%, EBITDA margin improvement to above 10%, expansion of positive FCF, and stable operating results through industry and economic cycles resulting in a total adjusted debt/EBITDAR consistently below 4.5x. Developments That May, Individually or Collectively, Lead to Negative Rating Action -- Failure to improve liquidity and complete asset sales; -- Continued operational pressures resulting in EBITDA / Interest expense below 2x ; -- Sustained total adjusted leverage above 5.5x. LIQUIDITY Grupo Kaltex's Liquidity Position is Limited: At year-end 2017, the company's available cash balance was USD27.7 million with annual senior notes interest payment of USD28.4 million and approximately USD20 million of short-term debt due in 2018. The company has around USD65 million of undrawn uncommitted credit lines. At Dec. 31, 2017, Grupo Kaltex reported a total debt of MXN7,584 million, of which 95% was denominated in U.S. dollars and the rest in Colombian pesos. The debt consists mainly of USD320 million senior secured notes due 2022, and the rest are bank loans. As of Dec. 31, 2017, the issuer and the subsidiary guarantors collectively accounted for about 72% of Grupo Kaltex's consolidated assets, 88% of the consolidated EBITDA and 93% of consolidated sales. In addition, the notes are secured by mortgages that include a plant located in Tepeji del Rio, Hidalgo, Mexico, and a Mexican plant located in Altamira, Tamaulipas, a non-possessory pledge agreement that includes machinery and equipment owned by Manufacturas Kaltex, S.A. de C.V. and a non-possessory pledge agreement covering machinery and equipment owned by Kaltex Fibers, S.A. de C.V. Based upon appraisals conducted in December of 2017, the approximate value of the collateral was MXN1,917 million (approximately USD97 million). FULL LIST OF RATING ACTIONS Fitch has downgraded the following ratings: Grupo Kaltex -- Long-Term Foreign Currency IDR 'B-' from 'B'; Negative Watch; -- Long-Term Local Currency IDRs to 'B-' from 'B'; Negative Watch; -- Senior secured 8.875% US$320 million notes due 2022 'B-'/'RR4' from 'B/RR4'; Negative Watch. ====================== P U E R T O R I C O ====================== SPANISH BROADCASTING: Bluestone Holds 14.5% Stake as of March 1 --------------------------------------------------------------- In a Schedule 13D/A filed with the Securities and Exchange Commission, Bluestone Financial Ltd. reported that as of March 1, 2018, it beneficially owns 604,776 shares of Class A common stock of Spanish Broadcasting Systems, Inc., constituting 14.51 percent of the shares outstanding. Bluestone, engaged in financial investing, is a Limited Company incorporated under the laws of British Virgin Islands. David Tomasello is the managing director of Bluestone. Bluestone said it intends to review its investments in the Issuer on a continuing basis and may engage in discussions with the Management and the Board of Directors concerning the business, operations and future plans of the Issuer as it deems appropriate, including potential Mergers and Acquisitions. "The Reporting Person believes Spanish Broadcasting Systems shares are undervalued and should maximize shareholders value by partnering, selling part or all of the Company to a bigger, global and well managed content and distribution media company like Sony Corporation who owns the content and conduit necessary to take Mega TV, La Musica streaming app and other SBS divisions to the next level. "By selling some underperforming and capital intensive assets like Mega TV, SBS will be able to deleverage the balance sheet, grow faster by entering into fast-growing business that are language agnostic yet appeal to a broader Hispanic population. In particular, a partnership or merger with bilingual ecommerce marketplace MercadoMagico.com, of which the Reporting Person owns a controlling stake through its investment in NeoMagic Corporation. Such partnership or merger would allow Spanish Broadcasting Systems to build a powerful Hispanic online ecosystem (ecommerce and entertainment) in the Americas and Southern Europe." As indicated in the Form 10-Q filed by the Company with the SEC, as of Nov. 6, 2017 there were 4,166,991 shares of Class A common stock outstanding. Bluestone has granted Mr. Tomasello the sole power to vote or direct the vote of 604,776 shares of the Company's Class A Common Stock. A full-text copy of the regulatory filing is available at: https://is.gd/E7eSY0 About Spanish Broadcasting Based in Miami, Florida, Spanish Broadcasting System, Inc. (OTCMKTS:SBSAA) -- http://www.spanishbroadcasting.com/-- is a Spanish-language media and entertainment company with radio and/or television stations in the top U.S. Hispanic markets, including Puerto Rico. The Company's owned and operated radio stations serve markets representing approximately 35% of the U.S. Hispanic population, and its television operations serve markets representing over 3.5 million Hispanic households. The Company produces and distributes Spanish-language content, including radio programs, television shows, music and live entertainment through its radio stations and its television group, MegaTV, which produces over 70 hours of original programming per week. MegaTV broadcasts via its owned and operated stations in South Florida, Houston, and Puerto Rico and through programming and/or distribution agreements with other stations, as well as various cable and satellite providers. Crowe Horwath LLP, in Fort Lauderdale, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, stating that the 12.5% Senior Secured Notes had a maturity date of April 15, 2017. Cash from operations or the sale of assets was not sufficient to repay the notes and other short term obligations when they became due, which resulted in significant liquidity requirements on the Company that raise substantial doubt about its ability to continue as a going concern. As of Sept. 30, 2017, Spanish Broadcasting had $434.5 million in total assets, $563.7 million in total liabilities and a total stockholders' deficit of $129.2 million. Spanish Broadcasting reported a net loss of $16.34 million for the year ended Dec. 31, 2016, compared with a net loss of $26.95 million in 2015. * * * In May 2017, S&P Global Ratings withdrew its 'D' corporate credit rating and issue-level ratings on Spanish Broadcasting System. "We withdrew the ratings because we were unlikely to raise them from 'D', based on SBS' ongoing plans to restructure its debt," said S&P Global Ratings' credit analyst Scott Zari. S&P had downgraded SBS to 'D' on April 21, 2017, following the company's announcement that it didn't repay its $275 million 12.5% senior secured notes that were due April 15, 2017, as reported by the TCR on May 25, 2017. In April 2017, Moody's Investors Service downgraded SBS's corporate family rating to 'Ca' from 'Caa2'. SBS's 'Ca' corporate family rating reflects an elevated expected loss rate following the recently announced default under the company's 12.5% senior secured notes due April 2017. TOYS R US: Gets Court's Nod on Winddown of 735 US Stores -------------------------------------------------------- BankruptcyData.com reported that the U.S. Bankruptcy Court approved Toys "R" Us' motion to wind-down the Company's U.S. operations, authorizing the Debtors to conduct U.S. store closings, establishing bidding procedures for the sale of the Debtors' Canadian equity and enforcing administrative stay. The Company announced that this will allow it to begin the process of conducting an orderly wind-down of its U.S. business and liquidation of inventory in all 735 of its U.S. stores, including those in Puerto Rico. As BankruptcyData previously reported, "By this Motion, the Debtors are taking the prudent and responsible step of seeking authority to begin an immediate and orderly liquidation of their U.S. business and to sell the Debtors' equity interest in the Canadian operations. To effectuate the U.S. wind-down, the Debtors seek to enter into an agreement with a consortium of liquidators that has been negotiated among the Debtors, the Creditors' Committee, the agents to the Debtors' secured DIP facilities, and the B-4 Lenders, and to obtain broad relief for store closing procedures that will maximize the value of the inventory in the Debtors' stores and distribution centers. Concurrent with the filing of this Motion, the Debtors have issued notices of termination to U.S. employees consistent with state and federal WARN statutes, which generally require a 60-day notice period. Importantly, many of the Debtors' operations throughout Canada, Europe, and Asia (the 'International Operations') remain strong, viable businesses with active prospects for a successful going- concern reorganization or sale processes. In addition to moving forward now with a sale process of Toys-Delaware's equity in the Canadian business (and potentially including up to 200 U.S. stores), the Debtors are focused on limiting any negative effect the U.S. liquidation may have on the International Operations." About Toys "R" Us Toys "R" Us, Inc., is an American toy and juvenile-products retailer founded in 1948 and headquartered in Wayne, New Jersey, in the New York City metropolitan area. Merchandise is sold in 880 Toys "R" Us and Babies "R" Us stores in the United States, Puerto Rico and Guam, and in more than 780 international stores and more than 245 licensed stores in 37 countries and jurisdictions. Merchandise is also sold at e-commerce sites including Toysrus.com and Babiesrus.com. On July 21, 2005, a consortium of Bain Capital Partners LLC, Kohlberg Kravis Roberts and Vornado Realty Trust invested $1.3 billion to complete a $6.6 billion leveraged buyout of the company. Toys "R" Us is a privately owned entity but still files with the Securities and Exchange Commission as required by its debt agreements. The Company's consolidated balance sheet showed $6.572 billion in assets, $7.891 billion in liabilities, and a stockholders' deficit of $1.319 billion as of April 29, 2017. Toys "R" Us, Inc., and certain of its U.S. subsidiaries and its Canadian subsidiary voluntarily filed for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Lead Case No. Case No. 17-34665) on Sept. 19, 2017. In addition, the Company's Canadian subsidiary voluntarily commenced parallel proceedings under the Companies' Creditors Arrangement Act ("CCAA") in Canada in the Ontario Superior Court of Justice. The Company's operations outside of the U.S. and Canada, including its 255 licensed stores and joint venture partnership in Asia, which are separate entities, are not part of the Chapter 11 filing and CCAA proceedings. Grant Thornton is the monitor appointed in the CCAA case. Judge Keith L. Phillips presides over the Chapter 11 cases. In the Chapter 11 cases, Kirkland & Ellis LLP and Kirkland & Ellis International LLP serve as the Debtors' legal counsel. Kutak Rock LLP serves as co-counsel. Toys "R" Us employed Alvarez & Marsal North America, LLC as its restructuring advisor; and Lazard Freres & Co. LLC as its investment banker. It hired Prime Clerk LLC as claims and noticing agent. A&G Realty Partners, LLC, serves as its real estate advisor. On Sept. 26, 2017, the U.S. Trustee for Region 4 appointed an official committee of unsecured creditors. The Committee retained Kramer Levin Naftalis & Frankel LLP as its legal counsel; Wolcott Rivers, P.C. as local counsel; FTI Consulting, Inc. as financial advisor; and Moelis & Company LLC as investment banker. Toys "R" Us UK Toys "R" Us Limited, Toys "R" Us, Inc.'s UK arm with 105 stores and 3,000 employees, was sent into administration in the United Kingdom in February 2018. Arron Kendall and Simon Thomas of Moorfields Advisory Limited, 88 Wood Street, London, EC2V 7QF were appointed Joint Administrators on Feb. 28, 2018. The Administrators now manage the affairs, business and property of the Company. The Administrators act as agents only and without personal liability. The Administrators said they will make every effort to secure a buyer for all or part of the business. Liquidation of U.S. Stores Toys "R" Us, Inc., on March 15, 2018, filed with the U.S. Bankruptcy Court a motion seeking Bankruptcy Court approval to start the process of conducting an orderly wind-down of its U.S. business and liquidation of inventory in all 735 of the Company's U.S. stores, including stores in Puerto Rico. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD & TOBAGO: IMF Points to Weaknesses in Tax Administration ----------------------------------------------------------------- Caribbean360.com reports that the International Monetary Fund (IMF) has found several deficiencies and weaknesses in Trinidad and Tobago's tax administration system. That was revealed in the findings of an assessment carried out by the Washington-based lending agency using the Tax Administration Diagnostic Assessment Tool (TADAT), according to Caribbean360.com. The IMF said the Inland Revenue Division's (IRD) reform needs are substantial, the report notes. Among the many deficiencies identified were: the unreliable state of the taxpayer registration database; delays in processing of accounting transactions; and weak compliance risk management methodologies that severely hamper IRD operations, limits its capacity to improve taxpayer compliance and generate additional tax revenues, the report relays. "While the assessment team observed strengths in the use of third party data to support audits, a well-structured tax dispute resolution process, and a relatively sound tax administration IT system, there are substantial weaknesses that impact all outcome areas," the (TADAT) performance assessment report stated, Caribbean360.com says. Those weaknesses include: an inaccurate taxpayer registration database with uncertainty regarding the number of active taxpayers; inaccurate taxpayer accounts arising from delays in processing accounting transactions; under-developed compliance management methodology; inefficient business processes; and general shortage of technical staff, Caribbean360.com notes. "All these issues impact on the credibility, reliability and ready availability of tax administration data," the report said, Caribbean360.com relays. Given the deficiencies identified, the IMF team said it was unable to assess the true performance situation in a number of areas, Caribbean360.com notes. In 18 of the 28 indicators, Trinidad and Tobago was graded 'D' -- the lowest level of performance which denotes inadequate performance or insufficient information to determine and score the level of performance, Caribbean360.com says. An 'A' grade, which denotes performance that meets or exceeds international good practice, was given in two areas: use of efficient collection systems and existence of an independent, workable, and graduated dispute resolution process, Caribbean360.com adds. As reported in the Troubled Company Reporter-Latin America on Jan. 9, 2018, Leah Sorias at Trinidad Express reports that Business groups and economic experts are projecting that 2018 will be another tough year for the economy. They believe the problems which plagued 2017, including the foreign exchange shortfall, will continue into this year, if diversification projects and other measures are not fast tracked, according to Trinidad Express. ================= X X X X X X X X X ================= * BOND PRICING: For the Week From March 26 to March 30, 2018 ------------------------------------------------------------ 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 2018. 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 * * *