/raid1/www/Hosts/bankrupt/TCRLA_Public/180531.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

               Thursday, May 31, 2018, Vol. 19, No. 107


                            Headlines



B R A Z I L

BRAZIL: Truck Strike Continues Despite Deal
COMPANHIA DE GAS: Fitch Affirms FC IDR at BB, Outlook Stable
CPFL GERACAO: Moody's Rates 11th Debenture Issuance 'Ba1'
EVEN CONSTRUTORA: Moody's Affirms B1 CFR; Alters Outlook to Stable
MARANHAO STATE: Fitch Affirms 'BB-' LT IDR, Outlook Stable

NACION SEGUROS: Fitch Affirms 'B' IFS Rating; Outlook Now Stable
ODEBRECHT ENGENHARIA: Fitch Hikes LT Foreign, Local IDR to 'CC'
ODEBRECHT SA: Creditors Agree to $710 Million New Loan


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Gov't. Must do its Part on Electric Pact
LUZ Y FUERZA: Gov't Wants to Squeeze Firm Off The Grid

* DOMINICAN REPUBLIC: Towns Plant Trees on Roads to Demand Fixes


J A M A I C A

UC RUSAL: Predicts 70% Decline in Production


M E X I C O

ALMACENADORA ACCEL: Moody's Affirms B2 CFR, Outlook Stable


P A R A G U A Y

TELEFONICA CELULAR: Moody's Hikes CFR to Ba2, Outlook Positive


U R U G U A Y

URUGUAY: Issues Call for Innovation Projects


                            - - - - -


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B R A Z I L
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BRAZIL: Truck Strike Continues Despite Deal
-------------------------------------------
Alijazeera reports that a nationwide truckers' strike in Brazil
over soaring fuel prices that has crippled the Brazilian economy
has entered a ninth day.

Brazil's government said it reached an agreement with the main
truck drivers' union late on May 27, but a significant number of
drivers continued to protest early on May 29, according to
Alijazeera.

The report notes that Brazilian President Michel Temer caved into
the striker's main demand and agreed to cut the diesel price by
BRL0.46 ($0.12) per litre -- a 10 percent reduction -- for 60
days.

The truckers are angry over the rise in diesel costs from BRL3.36
($0.92) a litre in January to BRL3.6 ($0.96) before the strike.
On May 26, it hit BRL3.8 ($1.02) per liter, the report relays.

"Throughout this week, my government has always been open to
dialogue," said President Temer on Twitter, the report relays.
"We have done our part to alleviate problems and sufferings," he
added.

Protesting drivers have been blocking roads across the country,
with many gas stations running out of fuel and some food items in
short supply, the report notes.

More than 550 road blockages by truckers were mounted across 24 of
the country's 27 states, the federal highway police said, the
report discloses.

Shortages of aviation fuel shuttered eight airports. Traffic to
the huge Santos seaport near Sao Paulo, which usually receives
10,000 trucks a day, was almost nonexistent, the report says.

The report notes that hospitals in Rio de Janeiro and Sao Paulo
had to cancel non-urgent surgeries and at least 13 states reported
scrapping university classes.

                    'More Than a Strike'

"What's taken many by surprise is just how quickly a country as
well developed as Brazil -- the seventh largest economy in the
world -- can be brought to its knees," said Al Jazeera's Daniel
Schweimler reporting from Sao Paulo, the report relays.

But for many of the protesters, the strike is not just about the
rising fuel prices, the report says.

"This used to be a strike," Maximilio Viana, a protesting truck
driver said, the report notes.  "Now it's more than a strike," he
added.

"Brazil has realized that we can't keep going with these
politicians who over the years we have seen involved in
corruption, bribery and scandals," the report discloses.

Since taking office in August 2016, President Temer has been
dogged by a series of corruption charges, the report notes.

The Brazilian leader survived a key lower house of Congress vote
in October last year to avoid facing trial, the report relays.

Brazil is already suffering from the aftermath of a deep recession
and political instability ahead of general elections in October,
the report discloses.

"We are not only here for the truck drivers, but for all
Brazilians who are suffering with the rises in electricity, water,
gas, everything," Evaldeir Andrade, truck driver, told Al Jazeera.

"Brazilians have to work just to survive," he added, the report
notes.  "We are not members of any political party, we are the
people who are suffering most," he added.

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.


COMPANHIA DE GAS: Fitch Affirms FC IDR at BB, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed Companhia de Gas de Sao Paulo's
(Comgas) Long-Term Foreign Currency Issuer Default Rating (FC IDR)
at 'BB', Local Currency IDR (LC IDR) at 'BBB-' and National Scale
Long-Term Rating at 'AAA(bra)'. The Rating Outlook is Stable.

Comgas' ratings reflect the solid fundamentals of its natural gas
distribution business and historically robust financial profile,
supported by reduced leverage, adequate financial flexibility and
significant cash flow from operations (CFFO). Fitch has assumed no
major changes on the company's credit profile due to regulatory
risks after the conclusion of its third revision cycle that is
currently underway. Comgas' business profile benefits from its
operations in the state of Sao Paulo, economically, Brazil's most
important state, and from the company's long-term concession
agreement which comprises clauses with non-manageable costs pass
through that protects the company's cash flow generation.

Comgas' activities offer favourable growth prospects in the medium
and long term given the expectation of expansion of its gas
distribution network and customer base. Fitch believes that this
energy source should continue to be competitive compared to other
alternatives. In addition, the agency assumed the company will be
able to re-contract its gas supply needs before current contracts
expire in 2019, with potential contractual changes not impacting
the company materially.

KEY RATING DRIVERS

Low to Moderate Business Risk: Comgas is subject to the volatility
of natural gas consumption within the industrial segment as it
represents around 55% of its gross profit. This segment
performance is highly linked with GDP and results on moderate cash
flow volatility for the company. Nevertheless, Comgas' competitive
manageable cost structure and continued efforts to expand its
residential and commercial client base with higher profitability
have mitigated the impact of industrial segment volatility. Fitch
estimates reduced impact on the company's financial profile
derived from natural gas purchase price volatility from Petrobras
due to FX and oil prices changes based on the enforceable non
manageable costs pass through contract clauses. The
competitiveness of Comgas prices have also been sustained given
similar price movements of alternative power sources.

Manageable Supply Risk: Fitch estimates no material impact on the
company's cash flow generation arising from the termination in
2019 of the two supply contracts with Petroleo Brasileiro S.A.
(Petrobras), being the main one with Bolivia originated gas. The
possibility of Brazil increasing gas exploration from its own
proven reserves should allow lower reliance on Bolivian gas.
Comgas' region of operation benefits from diverse gas ducts
connections to its distribution network that allows the company to
pursue alternative gas sources from 2019 onwards which partially
mitigates the supply concentration risks on Petrobras.

Robust Normalized EBITDA: Fitch estimates Comgas to sustain sound
normalized EBITDA generation during the next three years and at
BRL1.8 billion in 2018 based on expectation of adequate tariff
increases, maintenance of operating efficiency and expansion on
its client base. During the LTM ended March 2018, the company's
normalized EBITDA was BRL1.8 billion compared to BRL1.7 billion in
2017. The normalized EBITDA is adjusted for higher or lower non-
manageable costs than those contemplated in the tariff. Under the
concession agreement, these differences are incorporated into the
next tariff adjustment process. According to IFRS, the company's
EBITDA was BRL1.6 billion in the same period.

FCF Moderately Negative: Fitch believes that higher investments
and the distribution of relevant dividends will make Comgas' free
cash flow (FCF) negative at around BRL75 million per year on
average from 2018 to 2020, which the company can comfortably fund
through its favourable financial flexibility. For this period,
Fitch projects annual average dividend payments of BRL906 million
and investments of BRL500 million. During the LTM ended March
2018, Comgas' CFFO of BRL1.5 billion resulted in a FCF of BRL203
million, after lower dividend distribution of BRL869 million and
investments of BRL381 million as compared with 2016.

Conservative Financial Profile: Fitch expects Comgas to maintain
its conservative financial profile with gross and net leverage
below 2.5x and 1.0x, respectively, until 2020. By the end of March
2018, the gross leverage was 2.0x, with 1.0x on net basis,
considering the normalized EBITDA and according to Fitch's
methodology. Excluding the cash of BRL865 million related to the
litigation with the company's gas supplier (Petrobras), the
adjusted net debt/EBITDA ratio would remain conservative by 1.4x.
Considering the IFRS accounting standards, net leverage was also
low at 1.0x.

Part of the Cosan Group: Comgas' ratings also consider that the
company is part of the Cosan group, whose main shareholder is
Cosan SA Industria e Comercio (FC IDR 'BB', Local Currency IDR
'BB+' and National Scale Rating 'AA+(bra)', all with a Stable
Outlook). Despite the current debt of its main shareholder, the
group's access to Comgas cash is limited to the distribution of
dividends, given its concessionaire status. Comgas' FC IDR is
limited by the Brazilian Country Ceiling ('BB').

DERIVATION SUMMARY

Comgas' credit profile favourably compares with Companhia de
Saneamento Basico do Estado de Sao Paulo (Sabesp - FC and LC IDRs
'BB'/Stable), an water/wastewater utility company that also
operates in the state of Sao Paulo and presents significant
unhedged FX debt exposure, political risk and higher level of CFFO
committed to capex given its more capital intensive operations,
despite both companies presenting sound capital structure and
liquidity profile.

Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.
(Eletropaulo - FC and LC IDRs 'BB'/Stable), which is a power
distribution company, presents weaker capital structure as
compared with Comgas as well as relevant capex needs that could
pressure its liquidity profile. In comparison with Transmissora
Alianca de Energia Eletrica S.A. (Taesa - FC IDR 'BB'/Stable and
LC IDR 'BBB-'/Stable), a power transmission company in Brazil, the
higher leverage compared with Comgas is counter-balanced by
Taesa's lower regulatory and business risks given no volumetric
exposure leading to more predictable CFFO generation.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer
Include:

  - 1% volume increase (excluding thermo power generation segment)
on average from 2018 to 2020 and 2% thereafter;

  - Payout dividend ratio of 95% of net profit;

  - Annual average capex of around BRL500 million;

  - No major change on the company's cash flow generation capacity
arising from conclusion of third tariff revision.

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Positive Rating Action

  - An upgrade on Brazil's country ceiling would lead to a
positive rating action on Comgas' FC IDR. The improvement of the
company's client base segment diversification combined with
upgrade on Brazil's sovereign rating could result on upgrade of
the company's LC IDR.

Developments That May, Individually or Collectively, Lead to
Negative Rating Action

  - Expectation of a sustainable increase in net leverage to above
3.0x
  - Fitch's perception of regulatory and/or gas supply risk
deterioration
  - A downgrade of the sovereign rating would trigger a downgrade
for the FC IDR

LIQUIDITY

Robust Liquidity Position: Comgas' credit profile benefits from
its robust liquidity and lengthened debt maturity schedule in
addition to comfortable financial flexibility. The company's
liquidity has been strengthened with its 7th debenture issuance of
BRL215 million in May 2018. Fitch believes Comgas can further
sustain its conservative capital structure and liquidity profile
given its flexibility on its aggressive dividends policy. The
company's total cash balance by the end of March 2018 of BRL1.9
billion represented strong coverage of its short-term debt of
BRL791 million by 2.5x. Excluding the BRL865 million related with
litigation with Petrobras, the ratio remains comfortable at 1.4x.

By the end of March 2018 Comgas total debt of BRL3.4 billion,
according to Fitch's methodology, consisted mainly of unsecured
debenture issuances (BRL2.5 billion) and BNDES debt (BRL837
million). The debentures' coupon is inflation linked which suits
well with its CFFO dynamics given its tariff and fee adjustments
formula also linked with inflation rates.

Fitch has affirmed the following ratings:

Comgas

  --Long-Term Foreign Currency IDR at 'BB';

  --Long-Term Local Currency IDR at 'BBB-';

  --National Long-Term Rating at 'AAA(bra)';

  --BRL540 million 3rd debentures issuance National Long-Term
Rating at 'AAA(bra)'.

  --BRL592 million 4th debentures issuance National Long-Term
Rating at 'AAA(bra)'.

  --BRL500 million 5th debentures issuance National Long-Term
Rating at 'AAA(bra)'.

  --BRL400 million 6th debentures issuance National Long-Term
Rating at 'AAA(bra)'.

  --BRL215 million 7th debentures issuance National Long-Term
Rating at 'AAA(bra)'.

The corporate Ratings Outlook is Stable.


CPFL GERACAO: Moody's Rates 11th Debenture Issuance 'Ba1'
---------------------------------------------------------
Moody's America Latina Ltda. has assigned 'Ba1' global scale and
'Aaa.br' national scale debt ratings to CPFL Geracao de Energia
S.A.'s (CPFL Geracao) proposed 11th issuance of debentures, to be
issued in total amount of BRL1.4 billion. The debentures will be
issued in two tranches of BRL700 million each, maturing in three
and five years, respectively. The debentures are backed by a
corporate guarantee from CPFL Geracao's parent company, CPFL
Energia S.A. (CPFL Energia, Ba1/Aaa.br stable). The outlook is
stable.

Proceeds of the issuance will be used to refinance the 7th
issuance of debentures in outstanding principal amount of BRL635
million, with the remaining amounts to be used to support working
capital needs.

RATINGS RATIONALE

The ratings reflects the unconditional and irrevocable corporate
guarantee provided by CPFL Energia to the debentures to be issued
by CPFL Geracao. The indenture includes debt acceleration clauses
related to potential bankruptcy or reorganization of any of the
operating companies within the CPFL Energia corporate family,
including CPFL Geracao and its operating subsidiaries. Leverage
covenants on the proposed debentures are calculated based on CPFL
Energia's consolidated profile, and set at Net Debt / EBITDA below
3.75x and EBITDA / Net Financial Result above 2.25x. As of March
2018, CPFL Energia guaranteed 100% of the financial debt at the
CPFL Geracao operating holding company level, and approximately
55% of CPFL Geracao's total consolidated debt.

The Ba1/Aaa.br ratings assigned to the guarantor, CPFL Energia,
incorporates a one-notch uplift from its standalone credit
profile, reflective of a moderate likelihood of support from its
controlling shareholder, State Grid International Development
Limited (SGID, A2 stable). The uplift reflects (i) the strategic
importance of the Brazilian operations, to SGID, given it
represents approximately 60% of its annual consolidated EBITDA,
including CPFL Energia (ii) a financial policy targeting minimal
dividend payout aimed at supporting the company's deleveraging;
(iii) structural incentives to support the company in case of
financial distress given cross-default clauses at SGID bond
indentures related to bankruptcy of any subsidiary where it holds
+50% interest; and (iv) SGID's track record of providing support
to other subsidiaries globally. As of December 2017, CPFL Energia
presented Net Debt / Ebitda, CFO pre WC / Debt, and Interest
Coverage ratios of 3.2x, 17.4%, and 3.1x, respectively.

CPFL Geracao is the energy generation arm of CPFL Energia, holding
an installed capacity adjusted for its ownership stakes in total
of 3,283 MW. 61% of its installed capacity is in hydro, with
another 21% in wind projects, mostly through its subsidiary CPFL
Energias Renovaveis S.A., where it currently holds a 51.6% stake.
The geographic diversification of its hydro portfolio alleviates
region-specific droughts, with the important representation of the
wind portfolio further mitigating resource risks given the
inherent negative correlation of the wind and hydro resource in
Brazil.

Cash flow predictability is underpinned by a strong contracted
capacity until 2021 (96% contracted), and an overall average
remaining contract life of 12.9 years. The company's hydro-related
regulated power purchase agreements (PPAs) benefit from hydro-risk
insurance for 100% of physical guarantees. Considering its
unregulated PPA position, overall net hydro-resource risk exposure
is estimated at 12% of overall physical guarantee, which is low in
contrast to peers. Cash flow visibility is further strengthened by
the relatively long tenor of its key hydro
concessions/authorizations, in majority expiring after 2028.

The capital investment program is relatively small in contrast to
past levels, with the company reaching the end of its investment
cycle, and is not expected to reach more than 5% of current
property, plant, and equipment (PP&E). Over the past three years,
capital investment expenses have averaged 130% of the annual
depreciation expense, particularly on new wind projects at CPFL
Renovaveis.

Leverage is relatively high for the rating category, but is slowly
improving from a Debt to EBITDA ratio of 5.3x in 2015 to 4.5x as
of March 2018, with robust liquidity bringing Net Debt to Ebitda
to below 3.8x. EBITDA has been improving on the back of prudent
management of hydro exposure, new projects reaching commercial
operations, and management/substitution of PPAs through available
regulated uncontracting auctions (Mecanismo de Compensacao de
Sobras e Deficits -- MCSD). Leverage is expected to decrease
sharply, with Debt to EBITDA reaching below 3.0x as of 2020, with
CFO pre WC / Debt, and Interest Coverage Ratio reaching
approximately 25% and 3.5x, respectively. With available cash of
BRL1.8 billion as of March 2018, coupled with the BRL1.4 billion
issuance of debentures, CPFL Geracao will maintain an adequate
liquidity profile.

WHAT COULD CHANGE THE RATING UP/DOWN

The rating could be upgraded upon an upgrade to the ratings
assigned to the guarantor, CPFL Energia. CPFL Energia's ratings
can be upgraded upon the perception that support from SGID becomes
more evident and/or formalized in debt guarantees. Given the
intrinsic linkages of CPFL Energia's standalone credit quality to
that of the Government of Brazil (Ba2/stable), positive rating
actions in the sovereign rating can cause upward pressure to the
global scale ratings.

On the other hand, the ratings can be downgraded upon a downgrade
to the ratings of CPFL Energia. CPFL Energia's ratings could face
downward pressure if the stability and transparency of the
regulatory regime for the distribution and generation segments is
weakened, ultimately resulting in a perception of more volatility
or decrease of the cash flow base, causing sustainable declines in
CFO pre WC to Debt and/or Interest Coverage Ratio to levels below
12.0% and 2.0x, respectively. The global scale ratings can also be
downgraded upon a similar rating action on the sovereign rating.

The principal methodology used in these ratings was Unregulated
Utilities and Unregulated Power Companies published in May 2017.

CPFL Geracao is a power generation company, 100% owned by CPFL
Energia S.A (Ba1/Aaa.br stable), which is ultimately controled by
State Grid International Development Limited (SGID, A2 stable).
The company has a total installed capacity of 3,283 MW and 1,539
MW of assured energy, which is mainly comprised of conventional
renewable sources, as hydropower assets (68% of installed
capacity), followed by non-conventional renewable sources, as wind
power plants (21%) and thermoelectric biomass power plants (6%).
As of March 2018, the company posted net revenues and EBITDA of
BRL3.1 billion and BRL2.4 billion, respectively, as per Moody's
standard adjustments.


EVEN CONSTRUTORA: Moody's Affirms B1 CFR; Alters Outlook to Stable
------------------------------------------------------------------
Moody's America Latina Ltda. affirmed Even Construtora e
Incorporadora S/A ("Even")'s B1 (global scale) / Baa2.br (national
scale) corporate family rating and all related ratings. At the
same time, Moody's changed the outlook for the ratings to stable
from negative.

Ratings affirmed:

Issuer: Even Construtora e Incorporadora S/A:

  - Corporate family ratings: B1 (global scale) / Baa2.br
(national scale)

  - BRL87 million senior unsecured debentures due 2019: B1 (global
scale) / Baa2.br (national scale)

Outlook: changed to stable from negative

RATINGS RATIONALE

The stabilization of Even's B1/Baa2.br ratings outlook reflects
primarily Moody's expectation of gradual improvements in operating
performance through 2019. Even has been able to maintain adequate
leverage and liquidity profiles even during the downturn in
Brazil's homebuilding industry, as a consequence of its strategy
to accelerate the sale of finished units in inventories and reduce
gross debt. The stabilization of the outlook also incorporates
Moody's expectations that the deterioration in Brazil's
homebuilding industry has bottomed out and that the industry will
recover slowly and gradually in the next 12-18 months, thus
limiting future downside risk to Even's future operating and
financial performances.

Even's B1/Baa2.br ratings continue to reflect its strong brand
name and market share in the city of Sao Paulo, with a solid track
record in the construction of apartments for the middle income
families. The ratings also consider Even's relative conservative
financial policies that result in strong cost control mechanisms
and its manageable debt profile. The company's adequate leverage
and liquidity also support the ratings.

On the other hand, the company's reduced scale and diversification
constrain the ratings, as it leaves Even's future growth and
profitability dependent on the pace of the recovery in middle- and
middle-high income housing demand. Even's operations are
concentrated in the middle- and middle-high-income segments, and
in the cities of Sao Paulo, Rio de Janeiro and Porto Alegre. The
slowdown of home sales and high sales cancellations in these
segments hit Even hard, with revenues declining by 36% in the last
twelve months ended March 2018 since their peak in 2012, along
with lower new housing starts.

Nevertheless, Even's strategy to reduce new housing starts and
focus on the sale of finished units in inventories resulted in an
accumulated high free cash flow generation of BRL543 million since
the beginning of 2017, and the company was able to reduce gross
debt by BRL409 million since then, even as P&L metrics
deteriorated. Accordingly, the company's adjusted leverage
(measured by total debt to capitalization) remained relatively
stable during the crisis at a pro forma 46.8% in March 2018
(considering debt payments made during the second quarter of
2018), compared to a 49.9% peak at the end of 2017.

The company was also able to maintain an adequate liquidity
profile during the crisis in the homebuilding sector mainly due to
proactive liability management initiatives. Even also sold a
commercial property in Sao Paulo and used most of its free cash
flow generation in the last two years to reduce debt. These
initiatives supported an adequate capital structure and reduced
Even's liquidity risks, while providing it with financial
flexibility to resume its growth strategy in light of the
incipient industry recovery. At the end of March 2018, Even's cash
balance of BRL656 million comfortably covered the BRL386 million
in corporate debt maturing until the end of 2019. The company also
had approximately BRL430 million in project-related debt maturing
in the short term and BRL642 million in receivables from completed
units to service such obligations.

Going forward, Moody's expects Brazil's more benign macroeconomic
environment to support a slow and gradual improvement in both
Brazil's homebuilding industry and in Even's operating performance
-- although neither will return to pre-recession levels in the
near term. Lower interest and mortgage rates in Brazil will lead
to a reduction in household debt levels and to greater house
affordability, and lower inflation and more stable unemployment
will gradually increase consumers' disposable income and appetite
for home acquisitions. House prices have started to stabilize in
most of Brazil's regions after more than two years of overall
contraction, and Moody's expects a gradual increase throughout
2018, supporting lower sales cancellations.

The stable outlook incorporates Moody's expectations that Even's
leverage and liquidity will remain near current levels in the next
12-18 months, while both the company's performance and the
industry recover slowly and gradually.

A rating upgrade is unlikely in the short term, but positive
pressure on the ratings would arise if the company consistently
maintains its total debt to capitalization below 40% (pro forma
46.8% in March 2018), gross margin close to 28% (14% in the LTM
ended March 2018) and EBIT interest coverage above 3.5 times (-
0.5x in the LTM ended March 2018). An upgrade would also require
improvement in its liquidity position, as per an unrestricted cash
to short term debt position that is above 1.0x on a sustainable
basis.

Even's ratings could be downgraded if the company faces
significant deterioration in its liquidity profile due to a larger
than anticipated distribution to shareholders or a prolonged
downturn in the homebuilding industry that leads to a debt to
capitalization ratio above 50%, gross margin below 14% or EBIT
interest coverage consistently below 1.0x. A meaningful change in
the proportion of secured versus unsecured debt or a decrease in
the amount of unencumbered assets that could be used to pay down
the unsecured debentures could also result in a downgrade of
Even's unsecured ratings.

Headquartered in Sao Paulo, and established in 1974, Even is a
real estate developer with activities in the states of Sao Paulo,
Rio de Janeiro and Rio Grande do Sul and focus on residential
developments with average units priced above BRL350,000. The
company is vertically integrated, executing all real estate
development phases from the analysis of the prospective land to
the construction of the units and sale to the final homebuyer. In
the twelve months ended March 2018, Even reported consolidated net
revenues of BRL 1.6 billion ($501 million) and net losses of BRL
334 million ($104 million), mainly related to the accounting
impact of sales cancellation and non-cash provisions.

The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.


MARANHAO STATE: Fitch Affirms 'BB-' LT IDR, Outlook Stable
----------------------------------------------------------
Fitch Rating has affirmed the Long-Term Issuer Default Rating of
the Brazilian state of Maranhao (IDR) at 'BB-'. The Rating Outlook
is Stable. Fitch has also affirmed Maranhao's national long-term
rating at 'AA-(bra)' with a Stable Outlook.

KEY RATING DRIVERS

Finances: Fitch considers Maranhao's finances to be a neutral
rating factor with a stable trend. Average yearly operating
margins of 9.7% over the last five years have been higher than the
state's larger local peers. However, the state relies heavily on
federal transfers. According to Fitch's projections, operating
margins should be higher than 5% until 2019. Maranhao has
registered overall fiscal surpluses during the last five years,
and the small deficit registered in 2017 reflects higher than
expected capex.

Debt and Other Long-term Liabilities: Fitch considers Maranhao's
debt profile a neutral rating factor with a stable Trend.
Maranhao's consolidated debt of BRL5.3 billion represented 32% of
the entity's operating revenues in 2017 in declining trend. The
state is moderately exposed to currency risk with 31% of total
risk denominated in USD, which makes it vulnerable to the recent
Real depreciation. Maranhao does not have revenues linked directly
or indirectly to the USD.

Economy: Fitch considers Maranhao's economy to be a weak rating
factor with a stable trend. With a GDP of around BRL89 billion in
2017, Maranhao contributes less than 2% to the Brazilian GDP and
less than 10% of the Northeast region's GDP. Its economy, which is
fairly concentrated and relatively less dynamic compared to its
peers, is mostly propelled by the services and primary sectors. In
terms of socioeconomic indicators, Maranhao presents the second
highest infant mortality rates in Brazil, according to the
Brazilian Institute of Geography and Statistics (IBGE). The
illiteracy rate is the second highest in the country, at around
20% of the population. This partially explains its above average
unemployment rate of 13.3% compared to 11.8% for Brazil as of
December 2017.

Management and Administration: Management is a neutral rating
factor with a stable trend. Maranhao's governor was elected in
October 2014 with an overall policy consensus to improve social
economic indicators in the state. The governor has been able to
deliver sustained fiscal performance with some improvements in
transparency.

RATING SENSITIVITIES

Any rating changes for the Federative Republic of Brazil could
exert a direct effect over Maranhao. An upgrade of the state's
national scale would be possible if it increased proprietary
revenues to levels above 70% of operating revenues (46.5% in 2017)
coupled with a significant increase in its economic share in
relation to the national economy.

KEY ASSUMPTIONS

The ratings and Outlooks are sensitive to these assumptions:

  --Fitch assumes that Maranhao would receive a similar level of
sovereign support as the larger Brazilian states. Despite the weak
institutional framework, the federal government is Maranhao's most
relevant creditor and guarantor.

  --Due to the upcoming general elections in October, Fitch
expects some delays in the government's legislative agenda,
especially items affecting subnationals such as pension reform and
additional federal debt relief.

FULL LIST OF RATING ACTIONS

Fitch has affirmed the following ratings:

State of Maranhao

  --Long-term Foreign and Local Currency IDRs at 'BB-'; Outlook
Stable;

  --Short-term Foreign and Local Currency IDRs at 'B';

  --National Long-term Rating at 'AA-(bra)'; Outlook Stable;

  --National Short-term Rating at 'F1+(bra)'.


NACION SEGUROS: Fitch Affirms 'B' IFS Rating; Outlook Now Stable
----------------------------------------------------------------
Fitch Ratings has revised the Outlook on Nacion Seguros S.A.,
Nacion Seguros de Retiro S.A. and Nacion Reaseguros S.A. to Stable
from Positive and has affirmed the three insurers' Insurer
Financial Strength (IFS) ratings at 'B'.

The Outlook revision follows the revision of Fitch's Outlook on
the Argentina sovereign to Stable from Positive on May 4, 2018,
and the resulting effect on the insurers' parent company, Banco de
la Nacion Argentina (BNA), whose operations are guaranteed by the
government.

KEY RATING DRIVERS

The rating of the three Nacion insurance companies follows a group
rating approach, as Fitch considers the companies to be core for
their parent, BNA. BNA is a state-owned bank that plays a social
role for the government. The bank supports government policies and
thus its operations are guaranteed by the state. Fitch affirmed
the sovereign rating of Argentina at 'B' on May 4, 2018, and
revised the Outlook to Stable from Positive. The rating action,
together with the parental relationship with BNA, has driven the
Outlook revision on the Nacion insurance companies.

The revision of the Outlook on Argentina reflects macroeconomic
policy frictions and political headwinds that have intensified
beyond Fitch's prior expectations, highlighting risks surrounding
the country's gradual policy adjustment process. Fitch expects
policy adjustments underway to progress despite recent political
noise and market volatility, gradually reducing still-high
inflation and fiscal imbalances and supporting a stronger and more
stable growth outlook. Nevertheless, recent developments have
highlighted the vulnerability of the policy strategy amid market
sentiment and political support.

Argentina's rating reflects high inflation and economic
volatility, a weak, albeit improved, external liquidity position,
and large fiscal and current-account deficits implying heavy
external borrowing (but from a favorable starting point in terms
of leverage). These weaknesses are balanced by structural
strengths, including high per capita income, a large and
diversified economy, and improved governance scores.

RATING SENSITIVITIES

Any changes in Fitch's assessment of BNA's capacity or willingness
to support the three Nacion insurance companies would result in a
corresponding change to the insurers' ratings, considering that
the ratings are support driven.


ODEBRECHT ENGENHARIA: Fitch Hikes LT Foreign, Local IDR to 'CC'
---------------------------------------------------------------
Fitch Ratings has upgraded Odebrecht Engenharia e Construcao
S.A.'s (OEC) Long-Term Foreign and Local Currency Issuer Default
Rating (IDR) to 'CC' from 'C'. In addition, Fitch has upgraded
Odebrecht Finance Ltd.'s (OFL) senior unsecured notes' rating to
'CC'/'RR4' from 'C'/'RR4', which is fully and irrevocably
guaranteed by OEC.

The upgrade to 'CC' follows the principal payment of OFL's BRL500
million senior unsecured notes, as well as the USD11 million
coupon payment of the 2025 senior unsecured bonds within the cure
period, on May 25, 2018. As a result, a default no longer exists
under the 2018 and 2025 indentures.

OEC used the proceeds received from its parent, Odebrecht S.A.
(ODB), to amortize the bond and coupon. ODB has made a commitment
to provide OEC BRL1.32 billion during 2018, of which BRL500
million has already been received on May 25, 2018. The remaining
portion will be used to cover the company's debt service in 2018
and build cash for future working capital needs. OEC has coupon
payments of USD195 million in 2018, of which approximately USD41
million have already been paid.

Fitch sees the capital injection as a temporary relief for OEC as
it covers only the remaining coupon payments due in 2018. Out of
the BRL1.32 billion (about USD357 million) capital increase,
BRL540 million (about USD146 million) was used to amortize the
principal amortization of the senior unsecured notes and the
coupon payment of the 2025 senior unsecured bond. OEC still has
about BRL570 million (USD154 million) in coupons to be paid in
2018, leaving BRL200 million (about USD54 million) to reinforce
the contractor's cash position.

In Fitch's opinion, OEC is still strongly vulnerable to stress and
its liquidity is not compatible with future principal and coupon
payments and high working capital needs. For 2019 and 2020, Fitch
estimates coupons and principal amortization of USD439 million,
posing a large pressure on company's liquidity. The company has
not published the 2017 consolidated financial statements yet,
which reduces the operating cash flow visibility. As of the LTM
ended Sept. 30, 2017, OEC registered an EBITDA of BRL688 million
and CFFO was negative at BRL2.8 billion, indicating the cash-burn
continues.

The 'CC' ratings also incorporate the high credit risk due to the
several challenges OEC still faces in attempting to turnaround its
operations and recover backlog. This would naturally improve the
overall quality of its portfolio of contracts, diluting the
importance of the Venezuelan projects that have been halted due to
the lack of credit lines of the client. The BRL2.1 billion
contract signed in early May 2018 to build a port in Espirito
Santo State in Brazil has been credit accretive.

OEC still have to settle plea bargain agreements with the seven
remaining countries it admitted to have paid briberies and
kickbacks to win contracts. The company also needs to settle
leniency agreements with other Brazilian investigation boards,
namely TCU, CGU, and AGU and define the penalty that could surpass
BRL2 billion. In addition, OEC needs stop cash-burn and collect
past-due receivables to improve its credit profile.

OEC's classification also incorporates the weaker financial
flexibility due to the limited additional funding capacity of its
parent that has locked its 38.5% participation in Braskem S.A.
('BBB-' / 'AAA(bra)' / Stable) as loan guarantees.


KEY RATING DRIVERS

Not applicable.

DERIVATION SUMMARY

Not applicable.

KEY ASSUMPTIONS

Not applicable.

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Positive Rating Action

  --Upgrades are unlikely in the short term.

Developments That May, Individually or Collectively, Lead to
Negative Rating Action

  --Beginning of a default or default-like process, such as
entering in a cure-period or in standstill with banks;

  --The announcement of debt restructuring.

LIQUIDITY

OEC's liquidity remains weak despite the recent capital injection.
The BRL1.32 billion capital increase from ODB should cover the
remaining USD154 million coupon amortizations scheduled for 2018,
as USD41 million out of the annual coupon of approximately USD195
million have already been paid. For 2019, OEC has no principal
payment and annual coupons of USD184 million. In 2020, the company
has USD73 million of bond amortization and USD184 million of
coupon payments. As of Sept. 30, 2017, OEC had BRL2.2 billion
(USD700 million) of cash.

FULL LIST OF RATING ACTIONS

Fitch has upgraded the following ratings:

Odebrecht Engenharia e Construcao S.A.

  --Long-Term Foreign and Local-Currency IDRs to 'CC' from 'C';

  --National Scale Rating to 'CC(bra)' from 'C(bra)'.

Odebrecht Finance Ltd.

  --BRL500 million senior unsecured notes due 2018 to 'CC'/'RR4'
from 'C'/'RR4';

  --USD500 million senior unsecured notes due 2020 to 'CC'/'RR4'
from 'C'/'RR4';

  --USD600 million senior unsecured noted due 2022 to 'CC'/'RR4'
from 'C'/'RR4';

  --USD800 million senior unsecured notes due 2023 to 'CC'/'RR4'
from 'C'/'RR4';

  --USD550 million senior unsecured notes due 2025 to 'CC'/'RR4'
from 'C'/'RR4';

  --USD500 million senior unsecured notes due 2029 to 'CC'/'RR4'
from 'C'/'RR4';

  --USD850 million senior unsecured notes due 2042 to 'CC'/'RR4'
from 'C'/'RR4';

  --USD750 million perpetual bonds to 'CC'/'RR4' from 'C'/'RR4'.


ODEBRECHT SA: Creditors Agree to $710 Million New Loan
------------------------------------------------------
Carolina Mandl and Rodrigo Viga Gaier at Reuters report that
leading bank creditors of Brazilian engineering conglomerate
Odebrecht SA have reached an agreement to extend a new loan
package that will allow the repayment of $144 million its
construction unit owes to bondholders, three sources with
knowledge of the matter.

Brazil's two top lenders, Itau Unibanco Holding SA and Banco
Bradesco SA, have committed to lending BRL2.6 billion ($710.7
million), the sources added, asking for anonymity because talks
are still private, according to Reuters.

Loan contracts are being revised by banks and company lawyers but
have not yet been signed, according to the sources, says Reuters.

Although all banks have already approved loan terms within their
credit committees, last-minute disagreements could still derail
the transaction, the sources added, the report notes.

State-controlled Banco do Brasil SA, development bank BNDES and
Banco Santander Brasil SA have also agreed to the outlines of the
loan and how the collateral would be divided among the banks,
according to the sources, the report relays.

The report discloses that to approve new loans to Odebrecht, some
former loans that were not guaranteed received new collateral, as
is the case of BNDES, two sources said.

Around BRL10 billion worth of shares in petrochemical company
Braskem, currently owned by Odebrecht, will serve as collateral to
cover around BRL10 billion in bank loans, says the report.

Banks may seize Braskem shares and sell them if not repaid by May
2020, according to one of the sources, the report says.

If the agreement goes through, Odebrecht will get an additional
year to repay some loans, one of the sources added, the report
discloses.

Banco do Brasil, Bradesco, Itau and Santander did not immediately
comment.  Odebrecht said it is still in negotiations with banks.

May 25 was the last day of a 30-day grace period for the repayment
of a BRL500 million Odebrecht Engenharia e Construáao bond that
matured on April 25, the report relays.

If the bond is not repaid, bondholders may declare a default and
could trigger early repayment of almost $3 billion of dollar-
denominated bonds issued by the Brazilian company, the report
adds.

Newspaper Valor Economico reported that Odebrecht, which has been
implicated in one of Latin America's largest corruption scandals,
had reached a preliminary agreement to pay BRL2.7 billion in
damages to federal authorities in Brazil.

                     About Odebrecht SA

Construtora Norberto Odebrecht SA is a Latin American
engineering and construction company fully owned by the
Odebrecht Group, one of the 10 largest Brazilian private groups.
Construtora Norberto is the world's largest builder of
hydroelectric plants, of sanitary and storm sewers, water
treatment and desalination plants, transmission lines and
aqueducts.  The Group's main businesses are heavy engineering
and construction based in Rio de Janeiro, Brazil, and Braskem
S.A., its chemicals/petrochemicals company, based in Sao Paulo,
Brazil.

As of May 5, 2009, the company continues to carry Standard and
Poor's BB Issuer Credit ratings, and Fitch Rating's BB+ Issuer
Default ratings and BB+ Senior Unsecured Debt ratings.

                        *     *     *

As reporter in the Troubled Company Reporter-Latin America on
Dec. 2, 2016, The Wall Street Journal related that Marcelo
Odebrecht, the jailed former head of Brazilian construction giant
Odebrecht SA, agreed to sign a plea-bargain agreement in
connection with Brazil's largest corruption probe ever, according
to a person close to the negotiations.  The move could roil the
nation's political class yet again.  The testimony of the former
industrialist, which is part of the deal, has the potential to
implicate numerous politicians who allegedly took kickbacks from
contractors as part of a years-long graft ring centered on
Brazil's state-run oil company, Petroleo Brasileiro SA, known as
Petrobras, according to The Wall Street Journal.


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


DOMINICAN REPUBLIC: Gov't. Must do its Part on Electric Pact
------------------------------------------------------------
Dominican Today reports that National Business Council (Conep)
President Pedro Brache reminded the Government's representatives
who took part in the celebration of the National Private
Enterprise Day, that the business community "played its part" to
draft the document to reform the energy sector.

Mr. Brache stressed, however, that it's up to the Gov. to close
the pending issues and materialize it, the report notes.

"In this very fundamental Pact, which is part of the National
Development Strategy, the private sector has done its job and
played its part based on the assumed responsibilities, and despite
our readiness to collaborate, it's critically important that the
State help us now, playing its part, to have it signed and
implemented," the report quoted Mr. Brache as saying.

                Government Response

"The State has also done its thing, very soon the signing of the
document that was postponed several times at the end of last year
and early January, will be finalized," said Finance minister
Donald Guerrero after the event, the report discloses.

As reported in the Troubled Company Reporter-Latin America on
April 23, 2018, S&P Global Ratings affirmed its 'BB-/B' long- and
short-term sovereign credit ratings on the Dominican Republic.
The outlook remains stable.


LUZ Y FUERZA: Gov't Wants to Squeeze Firm Off The Grid
------------------------------------------------------
Dominican Today reports that power company Luz y Fuerza Chief
Executive Officer Jose Oscar Orsini Bosch vowed to make every
effort to guarantee quality electric service in Samana's leading
tourist town Las Terrenas, but acknowledged that it has no power
to keep the Govt. from squeezing them out of the national grid.

The business leader's statement comes just days after the State-
owned Distributor EDE Este disclosed that as of today, May 31, it
will terminate the electricity supply contract with the company
that supplies Las Terrenas and nearby El Limon, according to
Dominican Today.

The report notes that Mr. Orsini said the Electricity
Superintendence (SIE) has imposed a fee that requires a state
subsidy to be sustainable, although it has no authority to
allocate the funds that the company needs to operate.

"This situation has forced Luz y Fuerza to assume the cost of the
subsidy that in the rest of the country is financed by the
Dominican State, placing the company in an untenable situation and
causing payment delays to EDEESTE," the company said in a
statement obtained by the news agency.

He added that as a result of the policy of "strangulation applied
by the authorities," Luz y Fuerza has accumulative a deficit of
over RD$400.0 million in the last three years, although it has
paid 70 percent of the EDE Este bill and applies weekly
installments to outstanding accounts, the report notes.


* DOMINICAN REPUBLIC: Towns Plant Trees on Roads to Demand Fixes
----------------------------------------------------------------
Dominican Today reports that residents of three coastal towns
staged a novel protest in Barahona province (southwest), to demand
repairs of the only access road to their communities.

In what now has become a trend, the townsfolk planted several
banana trees in the middle the Barahona-Enriquillo span, according
to Dominican Today.

Numerous drivers who ply the San Rafael, Paraiso and Enriquillo
route immediately joined the protest, claiming that the potholes
damage their vehicles, the report notes.

They reiterated their demand that Public Works minister Gonzalo
Castillo fix the highway at once, the report relays.

As reported in the Troubled Company Reporter-Latin America on
April 23, 2018, S&P Global Ratings affirmed its 'BB-/B' long- and
short-term sovereign credit ratings on the Dominican Republic.
The outlook remains stable.



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


UC RUSAL: Predicts 70% Decline in Production
--------------------------------------------
RJR News reports that Windalco's parent company UC Rusal said its
output this year may be cut by as much as 70 per cent in a so-
called negative or worst-case scenario if US imposed sanctions
stay in place after October.

Russian business newspaper 'Kommersant' reported the figure citing
Rusal's forecasts contained in proposals filed to the Russian
government seeking state aid, according to RJR News.

The report said, if sanctions remain in place Rusal may cut its
2018 output by between 30 and 70 per cent, a scenario that may
also lead to staff cuts, and the closure of plants, RJR News
relates.

The report notes that UC Rusal has asked Russia's government for
benefits including cheap energy to help ride out the impact of the
US move.

The White House has given Rusal clients until late October to wind
down business with the company or risk falling foul of US trade
rules, the report says.

Meanwhile, the company has been lobbying hard to avert the
sanctions regime, including last week's announcement of the
resignation of its CEO and most of  the board.

The Russian aluminum company also signaled that turmoil could
return to metals markets if the sanctions are not removed by
October, saying that banks will likely cut ties with the company,
which would severely impact metal production and sales, the report
relays.

Some banks have already limited the processing of payments for
Rusal, the report notes.

It also warned that the sanctions could negatively affect its
ability to pay its debt, the report adds.

As reported in the Troubled Company Reporter-Latin America on
April 18, 2018, Fitch Ratings revised the Rating Watch on
Russia-based aluminium company United Company Rusal Plc's Long-
Term Issuer Default Rating (IDR) of 'BB-', Short-Term IDR of
'B' as well as Rusal Capital D.A.C.'s senior unsecured rating of
'BB- '/'RR4' to Negative from Evolving. Fitch simultaneously
withdrew all the ratings.


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


ALMACENADORA ACCEL: Moody's Affirms B2 CFR, Outlook Stable
----------------------------------------------------------
Moody's de Mexico has affirmed all of Almacenadora Accel, S.A.,
Organizacion Auxiliar del Credito's (Accel) ratings. All ratings
have a stable outlook.

The following ratings of Almacenadora Accel, S.A. (807769824) were
affirmed:

  - Long-term global local currency Corporate Family Rating: B2,
Stable Outlook

  - Long-term global local currency issuer rating: B2, Stable
Outlook

  - Short-term global local currency issuer rating: Not Prime

  - Long-term Mexican National Scale issuer rating: Ba1.mx

  - Short-term Mexican National Scale issuer rating: MX-4

RATINGS RATIONALE

The affirmation considers Accel's continued high capitalization,
limited leverage, and strong franchise within the small niche
industry of regulated warehouses in Mexico, which offer it
flexibility in times of stress despite low liquidity, limited
growth potential, and volatile profitability, a result of high
operating costs and rising competition.

Accel is a licensed warehousing company regulated by the Mexican
banking and securities regulator (Comision Nacional Bancaria y de
Valores, CNBV), whose license allows it to issue warehousing
"certificates of deposit" to its clients. These certificates of
deposit are documents that certify that a client's inventory is
stored at Accel's regulated warehouses that clients can post as
collateral. Accel has no claim over stored goods.

Although its own assets total just MXN942 million, Accel is the
third largest player within the small industry of regulated
warehouses with a market share of assets under custody of 12%, as
of December 2017. The industry's total assets under custody
amounted to MXN65 billion, or USD3.4 billion, as of year-end 2017.
However, the company's market share has declined steadily for the
past twenty years, as the industry has grown substantially but
Accel's volumes have remained largely stable since 2007. In
addition, the company not only faces competition from other
licensed warehousing companies, but for portions of its business
it also competes with unregulated warehouses that do not face the
steep regulatory costs related to the warehousing license.

Accel's profitability remains relatively strong in general, but it
has historically been very volatile due to its very high fixed
operating expenses and the highly competitive and low margin
nature of the industry. High maintenance and supervision costs, as
well as continued investments in renovations and technology,
consumed a high 94% of net revenues in the first three months of
2018, exposing the company's profitability to fluctuations in
business volumes. In addition, although the company maintains
insurance for the goods under its custody and reserves against
unexpected losses, from time to time it faces large unexpected
costs related to operational risks. These resulted in a net loss
of MXN11.4 million as recently as 2015. Nevertheless, Accel's net
income rebounded to MXN30.7 million, or 3.2% of average managed
assets, in 2017, and during the first three months of 2018, it was
double the level in the same period a year earlier. The
improvement is explained by lower interest expenses as the company
repaid its borrowings, as well as relatively lower operating
expenses.

Except for 2015, when debt plus accounts payable to ebitda reached
a high 5.0x, Accel's leverage has historically been low. The
company repaid its borrowings in 2017 and currently does not have
debt or borrowings outstanding. Debt to EBITDA remains limited
even if accounts payable are incorporated, about 1.6x currently.

As a result, Accel's capitalization is very strong, which will
continue to serve as an ample buffer against unexpected losses in
times of stress and provide the company financial flexibility to
take on debt if necessary. Tangible common equity stood at a high
80% of tangible managed assets, as of March 2018, in line with the
company's historical capitalization.

However, liquidity levels are also low, with liquid assets equal
to just 40% of short-term liabilities as of March 2018. In the
previous three years, liquidity averaged an even weaker 20% of
short-term liabilities. Given the volatility of the company's cash
flows, this could leave it vulnerable should revenues unexpectedly
decline, or expenses increase.

WHAT COULD CHANGE THE RATING -- UP OR DOWN

Accel's ratings would face upward pressure if its earnings were to
become more diversified and stable while its market power and/or
liquidity increased.

Negative pressure on Accel's ratings would accumulate if its
liquidity or profitability were to deteriorate, and/or leverage
were to increase substantially.

Because Accel has no outstanding debt obligations at this time,
the company's B2 issuer rating is at the same rating level as its
B2 Corporate Family Rating. If and when the company issues debt
obligations, Moody's will reassess the seniority and level of
asset protection of the company's capital structure.

Accel's Ba1.mx Mexican national scale issuer ratings is a direct
mapping from its local-currency issuer rating of B2.

The long-term Mexican National Scale rating of Ba1.mx indicates
issuers or issues with a below-average creditworthiness relative
to other domestic issuers.

Accel is headquartered in Mexico City, Mexico. As of March 2018,
Accel had MXN942 million in total assets, MXN755 million in
shareholder's equity and MXN6.9 billion in assets under custody.
The company ranks third in market share in terms of assets under
custody, among Mexican licensed warehousing companies (14 market
participants).

The principal methodology used in these ratings was Finance
Companies published in December 2016.


===============
P A R A G U A Y
===============


TELEFONICA CELULAR: Moody's Hikes CFR to Ba2, Outlook Positive
--------------------------------------------------------------
Moody's Investors Service has upgraded the Corporate Family Rating
(CFR) of Telefonica Celular del Paraguay S.A. (Telecel) to Ba2
from Ba3. At the same time, Moody's upgraded to Ba2 from Ba3 the
rating on the company's $300 million senior unsecured global notes
due 2022. The outlook was changed to positive.

List of affected ratings:

Upgrades:

Issuer: Telefonica Celular del Paraguay S.A (Telecel)

Corporate Family Rating: upgraded to Ba2 from Ba3

$300 million senior unsecured notes due 2022: upgraded to Ba2 from
Ba3

The outlook for all ratings is positive

RATINGS RATIONALE

The ratings upgrade and change in outlook to positive are a result
of Telecel's lower exposure to foreign exchange rating volatility
along with improvements in profitability observed during the last
two years amidst a highly competitive operating environment.
Accordingly, the company reduced its US dollar denominated debt to
61% of total debt in 2017 from 81% in 2016. In addition,
Paraguayan Guarani performance has been relatively more stable
versus the past couple of years and also when compared with other
currencies in Latin America. The upgrade also considers that the
operating gains are a result of tight cost control and efficiency
initiatives that increased adjusted EBITDA margin to 46.2% in 2017
from 43.6% in 2015, while keeping leverage measured by total debt
to EBITDA at around 2 times. Moody's believes the improvements are
sustainable and that Telecel will be successful in defending its
leading market position.

Telecel's Ba2 ratings reflect the company's leading market
position in Paraguay, effective business model and track record of
resilient operating performance. Telecel's low-debt profile and
strong liquidity furthermore promote long-term financial
stability. The company's close relationship with its controlling
shareholder -- Millicom International Cellular S.A. (Millicom, Ba1
stable) -- also supports the ratings.

Telecel's ratings are constrained by a modest revenue size
compared to global peers, although the company generates high
profits for the rating category. Revenues that have contracted
from 2013 to 2016 gained momentum in 2017 with consistent growth
in data revenues, but the competitive nature of the Paraguayan
telecom market and the shift to lower margin services will
continue to pressure revenue growth and margins. Despite the
reduction in US denominated debt and a more stable currency
performance in Paraguay, Telecel's exposure to foreign currency
fluctuation remains a credit negative.

Telecel has strong credit metrics and good financial stability
compared to other globally rated peers in the same category.
Moody's adjusted gross debt to EBITDA ratio has stayed close to
1.0 time from 2012 to 2014, but reached 1.8 times during 2015 and
ended 2017 at around 2 times. Although the company has no formal
target ratios, Moody's expects leverage to remain around 2.0 times
and coverage to remain strong for the rating category given
limited opportunities for large debt-funded acquisitions.

Telecel generates more than enough cash flow from operations to
cover capital expenditures, but free cash flow depends on the
level of dividend payout. As such, dividend payments have been
driving negative free cash flow generation in past years as it was
the case in 2017, when it amounted to -8% of total adjusted debt.
Moody's expects that the company will continue with its aggressive
dividend payments to its holding company pressuring its free cash
flow generation.

Telecel's liquidity is strong. As of December 2017, the company
had a cash balance of $87 million, which is sufficient to cover
short-term debt maturities over 5 times. In addition, 89% of the
company's cash was denominated in US dollars, providing protection
against foreign exchange fluctuations related to capex and
coupons. Telecel has a comfortable maturity profile with minor
amortizations of $30 million per year until 2021 and $320 million
in 2022, which includes the $300 million senior unsecured notes.
Telecel does not have committed revolving credit facilities.

The positive rating outlook reflects Moody's expectation that
Telecel will be able to sustain strong market shares as well as
its solid credit metrics, including low leverage, high margins and
good liquidity.

An upgrade would require the company to maintain strong operating
performance, credit metrics and liquidity in the competitive
Paraguayan telecom market while maintaining dividend and Capex
discipline.

A downgrade would be considered if operating margins decline
further than anticipated as a consequence a more intense
competitive environment. A negative rating action could also be
triggered by a debt leverage that increases above 3 times for a
prolonged period of time without a clear path to subsequent de-
leveraging.

The principal methodology used in these ratings was
Telecommunications Service Providers published in January 2017.

Telecel is the largest telecommunications service provider in
Paraguay, with 3.5 million subscribers and a mobile market share
of about 50% as of December 31, 2017. Operating under the Tigo
trademark through four business segments, Telecel offers
diversified mobile, cable and broadband products with the majority
of revenues derived from the mobile business. Telecel is a fully-
owned subsidiary of Millicom, representing 12% of consolidated
sales in 2017 as Millicom's third largest contributor. During
2017, Telecel's revenues totaled $552 million with an adjusted
EBITDA margin of 46.2%.


=============
U R U G U A Y
=============


URUGUAY: Issues Call for Innovation Projects
--------------------------------------------
Alianza News reports that Uruguay's Industry, Energy and Mining
Ministry (MIEM) and the National Cooperative Institute (Inacoop)
issued a call for cooperatives to present projects focusing on
innovation.

In issuing the call, Inacoop President Gustavo Bernini and
Industry and Labor Ministers Carolina Cosse and Ernesto Murro,
respectively, emphasized the growth of the Development Fund and
assorted cooperatives, according to Alianza News.

The report notes that Mr. Murro said that Uruguay "stands out" in
Latin America and the world not only for its institutions and its
guidelines but also for cooperativism, since recently the number
of cooperatives in the country has tripled.

"I think we have to continue working, learning, improving,
correcting mistakes, but without a doubt these things are being
done and this call is part of the process that we're developing,"
the report quoted Mr. Murro as saying.

The report relays that Mr. Bernini emphasized that in 2017 the
Fund, for the first time since 2015, managed to reverse a "loss
trend" and create a "small gain."

"Some of the undertakings that we had criticized for losses . . .
were rescued, and they began to produce and . . . pay off.  This
is an important trend," he said, the report notes.

Meanwhile, Mr. Cosse said that this second call for projects is
aimed at pushing projects in areas like bio-and nanotechnology,
electronics, software, agroindustry and creative industries, among
others, and is an example of how the state is working toward more
equitable socieconomic development, the report notes.

"The state, as a shield for the weakest, can and must also act as
a launching pad for innovation and for the most daring, those who
want to pursue disruptive projects to keep advancing. So, it's
important to support the social economy and begin moving along
these roads," the report quoted Mr. Cosse as saying.

This second call for projects by Inacoop and MIEM is aimed at
agrarian and labor cooperatives, rural development societies and
self-managed undertakings that produce goods or provide services
related to industry aimed at the local or foreign market, the
report relays.

The most innovative projects will be provided with refundable
funding of up to UYU5.8 million (about $18,500) and nonrefundable
funding of UYU300,000 (about $9,600), the report adds.


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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


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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.
.


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