/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/180410.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, April 10, 2018, Vol. 19, No. 70 Headlines A R G E N T I N A PROVINCE OF BUENOS AIRES: S&P Rates ARS22BB Sr. Unsec. Notes 'B+' GPAT COMPANIA: Moody's Assigns B1 Global LC Senior Debt Rating RIO NEGRO: Moody's Rates ARS2,500MM Proposed Class 1 MTN B2 B O L I V I A BOLIVIA: Opts for Gas-Based Fertilizer in Wine Region B R A Z I L BRAZIL: Lula Ordered to Surrender After Court Backs Jailing D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Grows 6.7% in Jan.-Feb., Top Official Says H O N D U R A S BANCO ATLANTIDA: S&P Affirms 'BB-/B' ICRs, Outlook Stable INVERSIONES ATLANTIDA: S&P Affirms 'B+' ICR, Outlook Stable J A M A I C A NOBLE GROUP: Concerned About "Rescue Plan" M E X I C O BARCLAYS BANK: Moody's Cuts Long-Term Global Deposit Rating to Ba1 TV AZTECA: Fitch Revises Outlook to Positive; Affirms B+ IDR P U E R T O R I C O QUICK COMMERCIAL: Case Summary & 2 Unsecured Creditors SPANISH BROADCASTING: Needs Additional Time to File Form 10-K T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Audit Ordered as Country Named in Scandal - - - - - ================= A R G E N T I N A ================= PROVINCE OF BUENOS AIRES: S&P Rates ARS22BB Sr. Unsec. Notes 'B+' ----------------------------------------------------------------- S&P Global Ratings assigned its 'B+' issue-level rating to the province of Buenos Aires' (PBA; B+/Stable/--) senior unsecured notes of up to ARS22 billion. The bullet amortization payment will be denominated in Argentine pesos. The provincial 2018 budget and the decree 2018-38 authorized the issuance amount. The province will use the proceeds to improve its debt maturity profile, make debt amortization payments, and fund infrastructure and other public investment projects. S&P expects the PBA's debt to reach 54% of its operating revenue by the end of 2018. According to the latest available data as of Sept. 30, 2017, the stock of provincial debt was ARP260 billion. Most of the debt stock consists of international and domestic capital market issuances. As of September 2017, 55% of the PBA's total debt was denominated in dollars, domestic currency (31%), euros (13%), and in other currencies (less than 1%). S&P said, "The foreign currency rating on the PBA is the same as our 'B+' global scale long-term issuer credit rating on Argentina. The PBA, like all local and regional governments (LRGs) in Argentina, operates under a very volatile and unbalanced institutional framework, in our view. However, we believe that there's a positive trend in the predictability of the outcome of the reforms and pace of implementation. We believe the constructive dialogue between the federal and subnational governments will help solve the current institutional, administrative, and budgetary challenges. "At the same time, we believe that the PBA's fiscal performance could gradually improve, if the province continues focusing on reducing its operating deficits. Under the leadership of Governor Vidal, the province has also shown commitment to intermediate- and long-term financial planning, which we consider positive from the credit point of view. Additionally, we believe that the PBA has a greater political weight than other provinces in LRG dealings with the federal government. We expect that the province will reach operating surplus by 2019, while deficits after capex will remain below 5% of total revenue in the same period. As of September 2017, operating deficit shrank to 2.5% from 3.5% in 2016. "The stable outlook on the PBA reflects our opinion of a more institutionalized dialogue between the province and the federal government to solve fiscal and economic challenges, which are expected to remain in the short to medium term. The outlook also incorporates our opinion that the province will continue to work to maintain an adequate fiscal position, while still resorting to market financing during 2018. We would only raise the ratings on the PBA in the next 12-18 months if we were to raise the sovereign local and foreign currency ratings, given that we don't believe the PBA meets the conditions to be rated above the sovereign. Such an upgrade would have to be accompanied by consistent strengthening in Argentina's institutional framework for LRGs and/or continued improvements in the PBA's individual creditworthiness. Conversely, we could lower our ratings on the province, if we downgrade Argentina as a result of lesser capacity to approve and implement policies that maintain macroeconomic stability. A deterioration in the PBA's fiscal performance and a debt trajectory that is worse than our expectations could also trigger a downgrade." RATINGS LIST Province of Buenos Aires Issuer credit rating B+/Stable/-- Rating Assigned Province of Buenos Aires Senior Unsecured B+ GPAT COMPANIA: Moody's Assigns B1 Global LC Senior Debt Rating -------------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo (MLA) has assigned a B1 global local currency senior debt rating and a Aa3.ar national scale local currency debt rating to GPAT Compania Financiera S.A (GPAT)'s XXXII series issuance. The notes will be issued in two tranches, A and B, which will be due in 18 months and 36 months respectively, in an aggregate amount of up to ARS 450 million. The ratings are on review for downgrade, in line with the review on GPAT's other ratings. The following ratings were assigned to GPAT Compania Financiera S.A: ARS450 million Senior Unsecured Debt Issuance: B1 Global Local Currency Debt Rating; Rating Under Review for Downgrade Aa3.ar Argentina National Scale Local Currency Debt Rating; Rating Under Review for Downgrade RATINGS RATIONALE GPAT's ratings incorporate the close operational links between the company and its parent, Banco Patagonia S.A. (Patagonia, Ba3 on review, b2), together with the probability that the company will receive financial support from Patagonia in an event of stress given its strategic importance to its parent. As the finance company of Patagonia, GPAT is primarily engaged in financing car sales of General Motors dealers through Patagonia's branch network, while Patagonia provides funding for dealers' floor plans. The review for downgrade of GPAT's ratings reflects the review of its parent's ratings. The ratings also consider Argentina's operating environment, which while improving has historically been very volatile, as well as the company's solid risk management policies and good asset quality, and high profitability. Key risks include the tight competition within the car-financing industry, the entity's monoline business orientation, and its largely wholesale funding structure, which is representative of other auto finance companies as well. Driven by declining inflation and interest rates, GPAT 's loan book increased 45% during 2017. Notwithstanding GPAT's 89% share of the market for financing GM car sales, increasing competition has led to a decline in the company's net interest margin to 4.35% in 2017, from 6.80% in 2016. Even though net income declined to 4.91% of tangible assets from 7.02% in 2016, due to higher credit costs as well as narrower lending spreads, profitability remains high even by Argentine standards, which are distorted by the very high rate of inflation. Despite a gradual deterioration since year-end 2016, nonperforming loans remained moderate at 2.03% in December 2017, in line with industry average. Moreover, the company's high loan book granularity, the strong collateralization of its portfolio, and loan loss reserves at 2.15% of gross loans help to mitigate the increase in asset risk. Thanks to parental support, the company is one of the stronger credits in Argentina, as reflected by its Aa3.ar national scale rating. The Aa3.ar NSR is the lower of the two alternatives on the Argentine national scale corresponding to GPAT's B1 global scale rating and reflects the review for downgrade of the issuer's global scale rating. Moody's expects to conclude the reviews on Patagonia and GPAT's ratings once there is greater certainty about the potential for changes to Patagonia's ownership structure and the extent of any new shareholders' willingness and ability to provide support to the bank, and hence GPAT as well. WHAT COULD CHANGE THE RATING UP/DOWN GPAT's ratings could face downward pressure if ratings of its parent, Patagonia, are downgraded, or if GPAT's financial fundamentals deteriorate. GPAT's global scale rating could decline by as two or more notches, and its NSR could fall by six or more notches, should Patagonia's parent, Banco do Brasil S.A. (BB), sell a portion of its stake in Patagonia such that there is no new controlling shareholder, or should the new controlling shareholder be either unrated or not rated as highly as BB. A downgrade of BB's ratings, which could be driven by a downgrade of Brazil's sovereign rating, would also put downward pressure on Patagonia and GPAT's local currency ratings as could a reduction in Moody's assessment of BB's willingness to provide support prior to an official announcement of the sale of its stake, or the identification of a buyer. Given the review for downgrade, upward pressure on GPAT's ratings is unlikely at this time. However, the ratings could be confirmed at the current level if and when Patagonia's ratings are confirmed, which could happened if BB announces the sale of its stake to another entity rated at least the same as BB and that exhibits a very high willingness to support Patagonia or if BB reasserts its commitment to the bank. The principal methodology used in these ratings was Finance Companies published in December 2016. GPAT Compania Financiera S.A is headquartered in Buenos Aires, Argentina, and reported ARS5,821 million of total assets and ARS1,055 million of shareholders' equity as of December 2017. RIO NEGRO: Moody's Rates ARS2,500MM Proposed Class 1 MTN B2 ----------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo has assigned B2 (Global Scale local currency) and A3.ar (on Argentina National Scale in local currency) ratings to proposed Class 1 Medium Term Notes to be issued by the Province of Rio Negro ("Rio Negro") for up to ARS2,500 million. The ratings are in line with the province's long term local currency issuer ratings, the issuer carries a stable outlook. RATINGS RATIONALE The Province will issue these Notes under its Program created by Provincial Decree Nß 84/18. This new Class will be issued under the province's Global Issuance Program for up to ARS 3,000 million created by Governor's Decree Nß 84/18. The Notes will constitute direct, general, unconditional and unsubordinated obligation of Rio Negro, ranking at all times pari passu without any preference among other debts. This Class will bear variable interest rate (local benchmark plus a maximum fixed margin of 5%) on a quarterly basis, will be issued and payable in Argentine Pesos and will have a minimum tenure of 2 years with bullet amortization. The province will use the proceeds of these Notes to cancel several financial obligations mainly the upcoming services of its Short-term Treasury Bills. Following the issuance of these new Notes, coupled with the expected debt amortization within this fiscal year, the effects of the provincial expected revenues growth, the impact of the exchange rate increase over the provincial's foreign currency debt and the expected cash financing deficit; Moody's anticipates that the ratio of total debt to total revenues of Rio Negro will grow to 49% by the end of this current year from 47% reported at 2017 fiscal year closing date. The assigned debt ratings reflect Moody's view that the willingness and capacity of Rio Negro to honor these Notes is in line with the provincial's long-term credit quality as reflected in the B2/A3.ar issuer ratings in local currency. The assigned ratings are based on preliminary documentation received by Moody's as of the rating assignment date. Moody's does not expect changes to the documentation reviewed over this period or anticipates changes in the main conditions that the notes will carry. Should issuance conditions and/or final documentation of any of the notes under this program deviate from the original ones submitted and reviewed by the rating agency, Moody's will assess the impact that these differences may have on the ratings and act accordingly. WHAT COULD CHANGE THE RATINGS UP/DOWN Given the strong macroeconomic and financial linkages between the Government of Argentina and the economic and financial profiles and ratings of Argentina regional governments, an upgrade of Argentina's sovereign bonds ratings and/or the improvement of the country's operating environment could lead to an upgrade of the Province of Rio Negro's issuer and debts ratings. Conversely, a downgrade of Argentina's sovereign bond ratings and/or a deterioration in Rio Negro's operating performance that led to higher than expected cash financing deficits and a rise in its level of total debt to between 60% and 65% could exert downward pressure on the ratings assigned. The principal methodology used in this rating was Regional and Local Governments published in January 2018. ============= B O L I V I A ============= BOLIVIA: Opts for Gas-Based Fertilizer in Wine Region ----------------------------------------------------- EFE News reports that Bolivia is betting on a fertilizer made from natural gas -- of which the Andean nation has massive reserves -- to boost agricultural output in the wine country of the southern region Tarija. Bolivian President Evo Morales traveled to Tarija city to inaugurate a urea sales depot installed by state oil and gas company YPFB, according to EFE News. With a total arable surface of 109,847 hectares (271,437 acres), Tarija is projected to consume up to 11,000 metric tons of urea a year -- three to six times current levels -- and YPFB expects to provide the fertilizer to growers of grapes, sugarcane, potatoes and corn, among other crops, the report relays. YPFB tests in Tarija have shown an increase in yields of up to 74 percent for grapes, 79 percent for sugarcane and 119 percent for potato crops, the report notes. "We will look into how to improve the urea production," the report quoted Mr. Morales as saying, noting that Bolivia used to be an importer of fertilizer, whereas it is now an exporter. "I am sure it will be of much help." The Bolivian government closed a deal in January to sell as many as 335,000 tons a year of urea to Brazil for more than $100 million, and is looking to forge agreements with Argentina and Paraguay for another 120,000 tons, the report notes. The Bulo Bulo petrochemical plant, which opened last year, has a production capacity of 2,100 metric tons of urea and 1,200 of ammonia daily and at least 80 percent of the output is intended for exportation, the report relays. The Tarija region is famous for its production of wine and singanis -- a type of brandy made from white grapes -- and its high-altitude vineyards are in the same as those of Argentina and Chile, the report adds. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 3, 2017, Moody's Investors Service has changed the outlook on Bolivia's issuer and senior unsecured bond ratings to stable from negative, and has affirmed the ratings at Ba3. =========== B R A Z I L =========== BRAZIL: Lula Ordered to Surrender After Court Backs Jailing ----------------------------------------------------------- The Guardian reports that Luiz Inacio Lula da Silva, Brazil's former president, has been ordered to turn himself in to the authorities to serve the 12-year jail sentence he was given after being convicted of corruption. Mr. Lula had pleaded with the country's supreme court to remain free until he had exhausted all his appeals, but the judges ruled by six to five against his request after 10 hours of debate, according to The Guardian. The decision will deal a serious blow to the political survival of Brazil's first working-class president and potentially deepen divisions in the country, which has been racked by episodes of political violence, the report notes. The report relays that Mr. Lula said the corruption charges against him are politically motivated and designed to stop him running for president again in October's election. Despite his conviction and six separate pending corruption trials, he is leading in opinion polls. His Workers' party (PT) described the ruling as "a tragic day for democracy and Brazil". Brazilians still hold great affection for Lula, despite corruption conviction, the report relays. The case against Lula is part of the "Car Wash" corruption investigation, which has led to the jailing of dozens of top executives and politicians and exposed bitter divisions in the country, the report says. Lula's successor, Dilma Rousseff, was impeached and removed from office amid a scandal and economic crisis, the report discloses. The current president, Michel Temer, avoided standing trial before the supreme court last year when allies in congress shielded him from charges of corruption, obstructing justice and links to organised crime, the report notes. Polls put his approval rating at 5%, but he has hinted at a run in October regardless, the report relays. The report discloses that Mr. Lula oversaw a period of sustained economic growth and his social policies helped lift millions of people out of poverty, but his legacy took a hit as the economy struggled under Rousseff and corruption allegations emerged against him and his leftist PT, which held power from 2003 to 2016. Mr. Lula's supporters, made up of groups of leftwing social movements and trade union members, gathered in the capital, Brasilia, a night after thousands of anti-Lula protesters took to the streets of 100 Brazilian cities, the report relays. The report notes that Douglas Grandini, who works at an estate agency and was on an anti-Lula protest, said: "The crisis that Brazil is in today comes from the bad planning and corruption of [politicians'] mandate. We'll take 10 years to recover." The report relays that Mr. Lula was found guilty last year and sentenced to 10 years in prison for accepting bribes worth BRL3.7 million (GBP790,000) from the OAS construction company -- the amount prosecutors said the firm spent refurbishing a beach flat for Mr. Lula in return for his help in winning contracts with the state-run oil company Petrobras. In January, an appeal court unanimously upheld his conviction and increased the sentence to 12 years, the report relays. Under Brazilian electoral law, a candidate is banned from elected office for eight years if found guilty of a crime, the report notes. The head of the PT said Lula would run for election in spite of the court ruling, leaving the decision about the validity of his candidature in the hands of the highest electoral court, 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. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Grows 6.7% in Jan.-Feb., Top Official Says -------------------------------------------------------------- Dominican Today reports that Central banker Hector Valdez Albizu, revealed that in the first two months this year the average growth was 6.7% of GDP, "well above existing expectations" while for the quarter, the cumulative inflation to March stood at 0.55%, and the depreciation at April 3 was 2.1%, slightly higher than the same quarter of the previous year. Mr. Valdez said growth in January was 7% and February was 6.3%, for an average of 6.7%, according to Dominican Today. "These figures show a significant start to the year with great expectations for the first quarter," the report quoted Mr. Valdez as saying. Regarding depreciation, the official said it's the period when the exchange rate has reached what the Government had contemplated for its budget at yearend 2017, the report notes. He affirmed that the slight movement of that variable has been the normally expected in the period in which the exchange rate moves, influenced by the restocking of inventories by industrial, retail and agro sectors; the exit of dividends from companies with direct foreign investment; and the payment of commitments in foreign currency with a letter of credit for imports during November and December, the report adds. As reported in the Troubled Company Reporter-Latin America on Nov. 20, 2017, Fitch Ratings has affirmed Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. =============== H O N D U R A S =============== BANCO ATLANTIDA: S&P Affirms 'BB-/B' ICRs, Outlook Stable --------------------------------------------------------- S&P Global Ratings affirmed its 'BB-' long-term and 'B' short-term global scale issuer credit ratings on Banco Atlantida. The outlook is stable. The rating on Banco Atlantida reflects its historical operating revenue stability and its leading position in the Honduran financial system. The recent capital injection has been enough to compensate for the bank's growth, which also supports S&P's forecasted average risk-adjusted capital (RAC) ratio of 5.7% for the next 24 months. The ratings also incorporate the bank's sound asset quality metrics despite the difficult political and economic environment in the country. Banco Atlantida's solid deposit base provides enough liquidity to cover its short-term maturities. INVERSIONES ATLANTIDA: S&P Affirms 'B+' ICR, Outlook Stable ------------------------------------------------------------ S&P Global Ratings affirmed its 'B+' long-term global scale issuer credit rating on Inversiones Atlantida, S.A. At the same time, S&P affirmed its 'B+' issue-level rating on the company's senior unsecured notes of $150 million with a five-year maturity. The outlook remains stable. The rating on Inversiones Atlantida continues to reflect its status as a non-operating holding company (NOHC). As a result, the rating is one notch below its consolidated operating subsidiaries' creditworthiness, which includes Honduras-based universal bank Banco Atlantida, S.A. (BB-/Stable/B). The one-notch rating subordination reflects the NOHC's dependence on the bank's dividend upstream to its service debt. Inversiones Atlantida's operating revenue stability stems from its banking business. Banco Atlantida's leading position in the Honduran banking system provides enough business volume to maintain operating stability. S&P said, "The rating on Inversiones Atlantida incorporates our forecasted average risk-adjusted capital (RAC) ratio of 5.7% for the next 24 months. We believe that the double leverage at the group is manageable--it was about 115% at the end of 2017 and we expect it to remain below 120% for the next 12 months." Despite Honduras' turbulent political and economic conditions in 2017, the group on a consolidated basis has kept sound asset quality metrics that are in line with those of the Honduran financial system. The bank's solid deposit base provides enough liquidity to cover its short-term maturities. The group's credit profile (GCP) is 'bb-'. ============= J A M A I C A ============= NOBLE GROUP: Concerned About "Rescue Plan" ------------------------------------------ RJR News reports that part owner of the Jamalco alumina refinery -- stricken commodities trader Noble Group, is on the ropes again after an anonymous research group, named Iceberg, warned its rescue plan had zero chance of success. Noble announced a controversial US$3.5 billion restructuring deal earlier this year that would hand control to some of its biggest creditors and virtually wipe out existing shareholders, leaving them with just 10 per cent of the company, according to RJR News. Iceberg Research, a long-time critic of Noble that first questioned its bookkeeping in a series of explosive reports in 2015, says the plan is absolutely not viable and the troubled company is aware of this, the report discloses. Iceberg alleges that Noble management wants shareholders to sign up to the plan simply to give it protection from future lawsuits, the report relays. Noble is currently seeking shareholders' approval to press ahead with its rescue plan warning it will begin an administration process in the UK without it, the report notes. It is also facing a lawsuit from one of its biggest shareholders, Abu Dhabi-based fund Goldilocks, which has accused it of inflating its assets, the report says. Noble has denied the allegations, the report adds. =========== M E X I C O =========== BARCLAYS BANK: Moody's Cuts Long-Term Global Deposit Rating to Ba1 ------------------------------------------------------------------ Moody's de Mexico S.A. de C.V has downgraded the long-term global local and foreign currency deposit ratings of Barclays Bank Mexico, S.A. (Barclays Mexico) to Ba1 from Baa3. The rating agency has also downgraded the bank's adjusted baseline credit assessment (BCA) to ba1 from baa3, its short-term global local and foreign currency deposit ratings to Not Prime from Prime-3, and its long- term Mexican national scale deposit rating to A1.mx from Aa3.mx. Further, the bank's long- and short-term Counterparty Risk (CR) assessments were downgraded to Baa3(cr) and Prime-3(cr), from Baa2(cr) and Prime-2(cr). In addition, Moody's downgraded the long-term global local currency issuer rating of Barclays Capital Casa de Bolsa, S.A. de C.V. (Barclays Capital CB) to Ba1 from Baa3. The brokerage house's short-term global local currency issuer rating was also downgraded to Not Prime from Prime-3, while its long-term Mexican National scale issuer rating was also downgraded to A1.mx from Aa3.mx. At the same time, Moody's affirmed Barclays Mexico's ba2 BCA, and its MX-1 short-term Mexican national scale deposit rating, as well as Barclays Capital CB's MX-1 short-term Mexican National scale issuer rating. All Barclays Mexico and Barclays Capital CB long-term ratings have now stable outlooks. This rating action concludes the review for downgrade initiated on February 23, 2018. The rating action follows the downgrade of the ratings and BCA of Barclays Mexico's parent, Barclays Bank PLC (Barclays Bank, LT deposits and senior unsecured debt A2 stable, BCA baa3), which Moody's announced on April 4, 2018, due to ongoing credit challenges and ring-fencing implementation. The following ratings and assessments were affirmed: Barclays Bank Mexico, S.A. (815083902) -- Baseline credit assessment of ba2 -- Short-term Mexican National Scale deposit rating of MX-1 Barclays Capital Casa de Bolsa, S.A. de C.V. (821609714) -- Short-term Mexican National Scale issuer rating of MX-1 The following ratings and assessments were downgraded: Barclays Bank Mexico, S.A. (815083902) -- Adjusted baseline credit assessment to ba1 from baa3 -- Long-term global local and foreign currency deposit ratings to Ba1, stable, from Baa3 -- Short-term global local and foreign currency deposit ratings to Not Prime from Prime-3 -- Long-term Mexican National Scale deposit rating to A1.mx from Aa3.mx -- Long-term Counterparty Risk Assessment to Baa3(cr) from Baa2(cr) -- Short-term Counterparty Risk Assessment to Prime-3(cr) from Prime-2(cr) Barclays Capital Casa de Bolsa, S.A. de C.V. (821609714) -- Long-term global local currency issuer rating to Ba1, stable, from Baa3 -- Short-term global local currency issuer rating to Not Prime from Prime-3 -- Long-term Mexican National Scale issuer rating to A1.mx from Aa3.mx Outlook actions: Barclays Bank Mexico, S.A. (815083902) - Outlook: changed to stable from ratings under review Barclays Capital Casa de Bolsa, S.A. de C.V. (821609714) - Outlook: changed to stable from ratings under review RATINGS RATIONALE The downgrade of Barclays Mexico and Barclays Capital CB's ratings follows the downgrade of the ratings of their parent, Barclays Bank. The downgrade of Barclays Bank's ratings and BCA reflects Moody's assessment of the overall group's credit profile, particularly in light of its ongoing profitability challenges, and the impact on existing creditors of the implementation of ring- fencing regulation in the United Kingdom (Aa2 stable). Ring- fencing aims to make economically vital banking services more resilient to financial shocks and will affect a small number of large UK banking groups, including Barclays, which will see its business mix narrow. Barclays Bank has become the group's non ring-fenced bank, following the transfer of the group's UK retail and business banking activities to the newly formed ring-fenced bank, Barclays Bank UK PLC (LT deposits A1, stable, BCA a3). Barclays Bank has therefore become more reliant on riskier wholesale and capital markets activities, increasing its risk profile and expected earnings volatility, as well as its dependence on wholesale funding, though its funding profile will remain diversified. In conjunction with the downgrade of Barclays Bank, Moody's has lowered its assessment of the probability of affiliate support that Barclays Mexico will receive from its parent to "High" from "Very High". This reduction reflects the group's greater strategic focus on its two key markets, the UK and the US, which has resulted in a reduction in its international footprint in recent years and implies a lower willingness of Barclays Bank to support its relatively small Mexican operations than in the past. The high probability of affiliate support which Barclays Mexico benefits from, captures the continued management and financial integration between Barclays Bank and its Mexican subsidiary, and also reflects the reputational risks entailed by their shared brand. The downgrade of the ratings of Barclays Capital CB considers Moody's view of the brokerage house as highly integrated and harmonized (HIH) with Barclays Mexico due to the strong linkages between the two in terms of infrastructure, risk management practices and customer base. Consequently, Barclays Capital CB's ratings are aligned with those of Barclays Mexico. The affirmation of Barclays Mexico's ba2 BCA captures the bank's very strong core capitalization and its low asset risk profile, given that a significant portion of its risks from derivative operations are effectively transferred to other companies of the Barclays group. The bank's reported total capital ratio increased to 33.3% as of January 2018, from 15.3% posted a year earlier, mainly as a result of a decrease in regulatory capital charges related to operational risk, as well as continued high earnings retention. However, Barclays Mexico's BCA is constrained by the bank's niche wholesale and investment banking operations, with a narrow focus on derivative operations, foreign exchange trading and bond underwriting. This generates inherently volatile earnings that are more vulnerable than those of traditional retail and commercial banking to the current uncertainties regarding the outcome of the North American Free Trade Agreement (NAFTA) negotiations and the upcoming presidential election in Mexico. The stable outlooks on Barclays Mexico and Barclays Capital CB is in line with the stable outlook of Barclays Bank. WHAT COULD MOVE THE RATINGS UP OR DOWN Barclays Mexico's ratings may face upward pressures if the NAFTA renegotiation results in a benign outcome for Mexico, and the uncertainty related to the outcome of Mexican presidential elections subsides, as the bank's capital, asset quality, and earnings are vulnerable to the heightened market volatility these dynamics generate. On the other hand, the bank's ratings could be downgraded in the case of a significant deterioration in earnings generation or liquidity position. The principal methodology used in rating Barclays Bank Mexico, S.A. was Banks published in September 2017. The principal methodology used in rating Barclays Capital Casa de Bolsa, S.A. de C.V. was Securities Industry Market Makers published in September 2017. The period of time covered in the financial information used to determine Barclays Bank Mexico, S.A. and Barclays Capital Casa de Bolsa, S.A. de C.V.'s ratings is between January 01, 2013 and December 31, 2017 (source: Moody's, issuers' annual audited and quarterly unaudited financial statements). TV AZTECA: Fitch Revises Outlook to Positive; Affirms B+ IDR ------------------------------------------------------------ Fitch Ratings has affirmed TV Azteca, S.A.B. de C.V.'s (TV Azteca) Long-Term Foreign and Local Currency Issuer Default Rating (IDRs) at 'B+'. The Rating Outlook has been revised to Positive from Stable. TV Azteca's Outlook revision to Positive from Stable reflects the company's successful liability management during 2017 amid its continued stable performance and operational cash flow generation. This has led to significantly improved net leverage ratios to 2.8x at year-end 2017 from 4.3x at year-end 2016 and 5.6x at year-end 2015 (including ATC financing). The Positive Outlook also reflects Fitch's expectation for the company to maintain relatively stable EBITDA and positive FCF generation over the medium term, which could enable it to retain a financial profile commensurate with a low-'BB' category, barring any worse-than-expected competitive pressures or sizable shareholder distributions and acquisitions. TV Azteca's ratings reflect the company's second largest market position in the Mexican broadcasting industry and its solid content production. The ratings are tempered by its volatile operating results and inability to maintain a steady financial profile in the past due to its expansion strategy into telecom operations amid weak advertising sales, particularly in 2015. Positively, the company has taken initiatives to focus its resources into core content generation and broadcasting operation. Fitch does not foresee any substantial cash outflows related with non-broadcasting related business activities. As such, Fitch expects the company's capex to be fully covered by its operational cash flow generation over the medium term. KEY RATING DRIVERS Successful Liability Management in 2017: TV Azteca's leverage and financial flexibility improved materially during 2017 due to its non-core asset sales. The proceeds were mainly used for debt reduction. In addition, steady EBITDA improvement with reduced exposure to a loss-making non-core telecom operation, including its fiber projects in Colombia, improved financial flexibility. In 2017, the company reduced its net debt by 23% to MXN10.6 billion at year-end 2017 from MXN13.8 billion at year-end 2016 (including ATC financing). During 2017, TV Azteca sold its spectrum asset held at its Azteca America stations by the reverse auction, through which it obtained USD156 million. The company issued USD400 million senior notes due 2024 and MXN4 billion domestic notes due 2022. The proceeds were used to fully repay its USD300 million and USD500 million senior notes, which were originally due 2018 and 2020. The company does not face any sizable maturities until 2022. TV Azteca's adjusted net leverage improved to 2.8x at year-end 2017, which favourably compares with 4.3x at year-end 2016 and 5.6x at year-end 2015. Stable Operational Outlook: Fitch forecasts TV Azteca's relatively stable EBITDA generation to continue in the short to medium term, following its material performance recovery since 2Q16, backed by successful cost controls and steady price increases. Fitch believes TV Azteca will maintain disciplined investments in content production, while the disposal of the loss-making Azteca America operation will also moderately contribute to enhanced profitability. Fitch forecasts the company to undergo low single digits revenue growth in 2018 and 2019, excluding the impact from once a year golf events, and generate stable EBITDA of around MXN3.5 billion with 25%-26% margins in 2018 and 2019. Industry growth outlook should remain stable in the near term, in Fitch's view, due to price increases by the operators and a World Cup impact in 2018, despite relatively weak macro conditions. Negatively, long-term growth headroom would be limited given the increasing importance of pay-TV and the internet as alternate advertising platform, amid increasing competitive pressures, including the entrance of Grupo Imagen into the market, which began operations in 4Q16. EBITDA Improvement: TV Azteca continued its EBITDA improvement trend in 2017, and grew by 20% to MXN3.8 billion in 2017 from MXN3.2 billion in 2016, driven by steady increases in domestic advertising revenues, deconsolidation of Colombia operations following its reduced stake to 40% from 100% in the operation, and measured investments into content production. In 2017, the company's core Mexican free-to-air advertising sales increased by 6%, following a 4% increase during 2016, backed by successful price increases and solid viewership ratings. The company implemented measures to avoid further material increase in production costs and, starting in 2015, undertook a reduction in larbor. This reduction included co-production with other content providers, termination of exclusivity contracts for its production talent, and renegotiated terms of its content purchases. Positive FCF Generation; Leverage Improvement: Fitch forecasts TV Azteca's FCF generation to remain broadly positive in the short to medium term, driven by stable EBITDA generation and reduced interest expenses following the reduction in gross debt level. The company's capex is expected to remain light at about USD30 million without any cash contribution to its overseas telecom operations or any sizable investment needs for its broadcasting segment. The company's 2017 FCF generation turned moderately negative with a negative 0.9% FCF margin, compared with 6% margin in 2016. This was due to a sizable increase in working capital, mainly associated with exhibition rights, including the World Cup, which should no longer be a factor in 2018. Fitch forecasts about an average 5% FCF margin in 2018 and 2019 amid stable CFFO generation of about MXN1.3 billion during the period. This will enable TV Azteca to maintain its net leverage close to 2.5x over the medium term. DERIVATION SUMMARY TV Azteca's credit quality has consistently improved since 2016 and is deemed strong for the 'B' rating category. The company's Positive Outlook indicates improved credit metrics in line with a low 'BB' category following successful debt reduction in 2017 amid stable operations. Fitch expects this to continue over the medium term. The company's ability to sustain stable performance and cash flow generation in the absence of any acquisition or sizable dividends will be a key factor for achieving a ratings upgrade. The company's direct peers in the region are in different rating categories. TV Azteca's competitor, Grupo Televisa (BBB+/Stable), boasts stronger content generation, market share, and financial profile, as well as more diversified cash flow generation with strong pay-tv operations. Compared to the company's regional peer, Globo Comunicacao e Participacoes (BB+/Stable), TV Azteca's relative market position and financial profile are considered weaker. Globo's ratings are constrained by the Country Ceiling of Brazil. No Parent/Subsidiary Linkage is applicable and No Country Ceiling constraint or operating environment influence was in effect for these ratings. KEY ASSUMPTIONS Fitch's Key Assumptions Within Fitch Rating Case for the Issuer -- Low single digits domestic advertising revenue growth in 2018 and 2019, excluding once a year golf event impact; -- EBITDA margin of 25%-26% in 2018 and 2019; -- Capex to sales ratio of about 4.0%-4.5% over the medium term; -- Average FCF margin of 5% over the medium term. -- Net leverage to remain in the range of 2.5x-3.0x over the medium term The recovery analysis assumes that TV Azteca 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 base the valuation of the company. -- Fitch assumes that any potential distress that provoked TV Azteca's default could occur due to weak economic factors, dampened advertising demand for free-to-air TV, and its unpopular content amid high production costs. The post-reorganization EBITDA assumption is MXN2.4 billion, which should be sufficient to cover its interest expenses, working capital, and maintenance capex. An EV multiple of 5x is used to calculate a post-reorganization valuation and reflects a mid-cycle multiple. -- Fitch calculates the recovery prospects for the senior unsecured debtholders in the 31%-50% range based on a waterfall approach after covering the company's loan from American Tower Corporation and available credit facility. This level of recovery results in the senior unsecured notes being rated in line with its IDR at 'B+/RR4' RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action -- Positive FCF generation with net leverage maintained comfortably below 3.0x on a sustained basis; -- No sizable dividends or expansion into non-core operations; -- Consistent track record of disciplined production costs with an ability to improve audience/revenue market shares. Developments That May, Individually or Collectively, Lead to Negative Rating Action -- Net leverage increasing to above 4.0x with negative FCF generation on a sustained basis; -- Weak advertising industry growth coupled with the company's gradual market share loss. LIQUIDITY Solid Liquidity: TV Azteca's has a sound liquidity profile. Following its successful liability management in 2017, the company does not face any debt maturity until 2022, when its MXN4 billion notes become due. The company held a readily-available cash balance of MXN2.8 billion at year-end 2018. The company also holds a USD130 million commercial paper program as well as a MXN3.9 billion credit facility with Banco Azteca. FULL LIST OF RATING ACTIONS Fitch has affirmed the following ratings: TV Azteca S.A.B. de C.V. -- Long-Term Foreign- and Local-Currency IDRs at 'B+'; Outlook Revised to Positive from Stable. -- Senior unsecured notes due 2024 at 'B+'/'RR4' ====================== P U E R T O R I C O ====================== QUICK COMMERCIAL: Case Summary & 2 Unsecured Creditors ------------------------------------------------------ Debtor: Quick Commercial Inc. PO Box 266373 Weston, FL 33326 Business Description: Quick Commercial Inc. filed as a Single Asset Real Estate (as defined in 11 U.S.C. Section 101(51B)). The Company is the 100% owner of a two-story commercial building with parking space located at Esquina Ave Polo Camino Alejandrino, B11, Guaynabo, PR 00969, having an appraised value of $800,000. Chapter 11 Petition Date: April 6, 2018 Case No.: 18-01865 Court: United States Bankruptcy Court District of Puerto Rico (Ponce) Debtor's Counsel: Jose M Prieto Carballo, Esq. JPC LAW OFFICE PO BOX 363565 San Juan, PR 00936-3565 Tel: 787-607-2066 E-mail: jmprietolaw@gmail.com jpc@jpclawpr.com Total Assets: $1.15 million Total Liabilities: $648,977 The petition was signed by Maylin Fiallo Perez, president. A full-text copy of the petition containing, among other items, a list of the Debtor's two unsecured creditors is available for free at: http://bankrupt.com/misc/prb18-01865.pdf SPANISH BROADCASTING: Needs Additional Time to File Form 10-K ------------------------------------------------------------- Spanish Broadcasting System, Inc., filed a Form 12b-25 with the Securities and Exchange Commission stating that additional time is needed for the Company to complete its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2017, which was due on April 2, 2018. The Company said it was unable to file its Form 10-K prior to the filing deadline without unreasonable effort or expense due to its needing more time to resolve the accounting treatment and complete the disclosure requirements regarding certain income tax related matters. The Company expects to file the Form 10-K no later than the fifteenth calendar day following the required filing date, as permitted by Rule 12b-25. 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. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD & TOBAGO: Audit Ordered as Country Named in Scandal ------------------------------------------------------------ Caribbean360.com reports that Trinidad and Tobago's Attorney General Faris Al-Rawi has ordered an audit into all government agencies and state entities on the heels of claims that a government minister in a previous administration hired a British- based consultancy firm to illegally harvest data of the twin- island republic's citizens. Christopher Wylie, a whistleblower who worked for the British political consulting firm, Cambridge Analytica, revealed Trinidad and Tobago's involvement in the scandal when he addressed United Kingdom lawmakers, according to Caribbean360.com. He said he had passed on contractual documentation and emails from some of the past projects of AggregateIQ (AIQ), an affiliate of Cambridge Analytica, including one "for the, at the time, Minister of National Security for Trinidad," the report notes. "Part of the project was to go out and find a way of accessing raw Internet service provider data for the entire country to monitor what people were browsing in that country. As I understand it, it's not legal in Trinidad and it certainly wouldn't be legal here," he added, the report relays. In a statement to Parliament, Al-Rawi said Cambridge Analytica, AIQ, and the Strategic Communication Laboratories (SCL) Group and their affiliate companies allegedly carried out illegal data and communication mining activities in Trinidad and Tobago in 2013 under the former Kamla Persad-Bissessar-led People's Partnership government, the report notes. Mr. Al-Rawi said the alleged activities breached the law in Trinidad and Tobago and there will be further digging to get to the bottom of what happened and who was involved, the report relays. "The Interception of Communications Act, Chapter 15:08 at Section 6, strictly prohibits the interception of communication in the manner alleged by the whistleblower in testimony given before The Digital, Culture, Media and Sport Committee of the House of Commons of the British Parliament. The Computer Misuse Act, Chapter 11:17, at Section 3, prohibits the unauthorized access to data. The alleged acts committed by Cambridge Analytica and its affiliates/alter egos potentially constitute breaches of the laws of Trinidad and Tobago. "In the election campaign of 2015, citizens would recall that there were wide scale receipts of unsolicited personalized political messaging from entities promoting the United National Congress. It is therefore incumbent upon the Office of the Attorney General in discharging duties under the Constitution of Trinidad and Tobago, to cause an audit of all Government Ministries, Statutory Authorities, State Enterprises and the National Security Council to ascertain whether any contracts were established, whether any payments were made and whether any services were rendered by the named companies, Cambridge Analytica, AggregateIQ, and the Strategic Communication Laboratories (SCL) Group, and/or any of their affiliate/alter ego companies/entities. "I shall ensure that this audit includes the application of a keen eye for any masked transactions through nominated/trustee entities to hide the true identity and nature of any services provided," Mr. Al-Rawi told Parliament, the report discloses. The Attorney General added that his office would also cooperate with international investigative agencies that are conducting parallel investigations into the matter, the report relays. "We shall reach out to authorities in the United Kingdom and the United States of America to secure information and evidence relating to this most serious matter of alleged illegal conduct and activity," he assured, the report says. "Accordingly, Madam Speaker, I am to inform this Honorable House that I instructed the State's Attorneys in the United Kingdom to take immediate steps to secure the evidence and materials provided by persons including the whistleblower Christopher Wylie," Mr. Al- Rawi said, the report notes. The report discloses that Mr. Al-Rawi said the government would do "all in its power to investigate this very important matter to unearth whether the rights of the citizens of Trinidad and Tobago have been infringed and to hold all such persons responsible for breaches of the laws of the Republic of Trinidad and Tobago properly accountable". However, Persad-Bissessar has condemned Al-Rawi for linking her People's Partnership government and her United National Congress (UNC) to the illegal activities by Cambridge Analytica, the report relays. In a statement issued after the Attorney General's presentation in Parliament, she denied any personal involvement or that of her party with the company, and served notice that the Opposition intended to file in Parliament, at the earliest opportunity, a motion of breach of privilege by the Attorney General "for his malicious and deliberate falsehood," the report notes. "The Attorney General's statement, by virtue of what appears to be calculated omissions and deliberate vagueness, amounted to a mischievous effort to mislead the Parliament, and by extension, the citizens of Trinidad and Tobago, in what is undoubtedly an important issue regarding their privacy rights in the uncontrolled and largely unregulated global virtual world of social media. "Al Rawi cited brief statements made by a whistle-blower by the name of Christopher Wiley in the House of Commons in the United Kingdom, who claimed that the company dealt with a former Government Minister and political officials, but did not specify the names or any further details of such claims. The Attorney General, without providing any such names or documents or evidence, went on to put his own dubious spin on these limited allegations by Mr Wiley. With a clear intention to serve a mischievous and desperate political agenda in the wake of the massive failures and corrupt practices of his ruling Rowley regime, the Attorney General maliciously claimed, without referencing any shred of evidence in any form, that this alleged dealing was perpetrated by the UNC politicians and Kamla Persad- Bissessar-led Government," she said, the report relays. She suggested that fingers should be pointed elsewhere, however, when she said that a Google search would provide details contained in an article published CBC News, that Cambridge Analytica's first contract with SCL was in 2013, for political work in Trinidad and Tobago with the country's Congress of the People party, the report notes. "It is therefore evident from this respectable and credible news report from the CBC News of Canada that the UNC was not the political party referred to by Mr. Wylie, nor were any of its sitting members of the People's Partnership Government," Ms. Persad-Bissessar said, the report relays. "It can also be concluded that the Attorney General had easy access to this public information, yet deliberately opted to omit it from his Parliamentary statement in an effort to wrongly and unjustly smear the UNC and its leader and members," she added. *********** 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 * * *