/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/180601.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 Friday, June 1, 2018, Vol. 19, No. 108 Headlines A N T I G U A & B A R B U D A LIAT: Governments Urged to Assist Airline B O L I V I A * BOLIVIA: Health Minister Steps Down B R A Z I L BRAZIL: Economy Grows 1.2% in First Quarter BRAZIL: Oil Workers Strike, Defying Court Order TUPY SA: S&P Alters Outlook to Positive & Affirms 'BB-' CCR C A Y M A N I S L A N D S IBC CAPITAL: S&P Affirms 'B' Issuer Credit Rating, Outlook Stable E C U A D O R ECUADOR: S&P Affirms B-/B Sovereign Credit Ratings, Outlook Stable J A M A I C A JAMAICA: Glut of Some Agricultural Produce Says Hutchinson M E X I C O MEXICO: Should Pay for Border Wall, Trump Insists P E R U PESQUERA EXALMAR: Moody's Rates $60.9MM Unsec. Notes 'B3' P U E R T O R I C O ENTERPRISE BUSINESS: Plan Discloses Settlement Deal with TCAC2 HUSKY INC: Restated 2nd Amended Plan Discloses Agreement with SBPR KAMA MANAGEMENT: June 6 Plan Confirmation Hearing QUICK COMMERCIAL: Taps JPC Law Office as Legal Counsel STAR BODY: Case Summary & 7 Unsecured Creditors V E N E Z U E L A VENEZUELA: S&P Affirms CCC- Sovereign Credit Rating, Off Watch Neg - - - - - =============================== A N T I G U A & B A R B U D A =============================== LIAT: Governments Urged to Assist Airline ----------------------------------------- RJR News reports that the Antigua and Barbuda government urged regional governments to provide a subvention to the cash-strapped regional airline, LIAT, so as to ensure its future viability. Prime Minister Gaston Browne, addressing a seminar, told delegates that the time has come for the Antigua-based airline to receive a subvention from the governments of the sub-regional Organization of Eastern Caribbean States (OECS) and Barbados, according to RJR News. LIAT main shareholders are the governments of Antigua and Barbuda, Barbados, Dominica and St. Vincent and the Grenadines, the report notes. Other regional governments have in the past been reluctant to provide funds to the airline that operates a scheduled serving 17 destinations in the Caribbean, the report adds. About LIAT LIAT, operating as Leeward Islands Air Transport, is an airline headquartered on the grounds of V. C. Bird International Airport in Antigua. It operates high-frequency inter-island scheduled services serving 21 destinations in the Caribbean. The airline's main base is VC Bird International Airport, Antigua and Barbuda, with bases at Grantley Adams International Airport, Barbados and Piarco International Airport, Trinidad and Tobago. * * * The Troubled Company Reporter-Latin America, citing Trinidad Express, on November 24, 2016, reported that the Barbados government defended the operations of the cash-strapped regional airline, LIAT, even as opposition legislators called for it to be stop being a financial burden on the island. Both Prime Minister Freundel Stuart and his Finance Minister, Chris Sinckler, defended the airline, whose major shareholders are Antigua and Barbuda, Barbados, Dominica and St. Vincent and the Grenadines. Mr. Stuart, speaking in Parliament, said despite the criticism the value of the airline should not be underestimated that the Antigua-based LIAT remains important to Barbados. According to the TCR-LA in May 8, 2015, the Daily Observer said that LIAT was attempting to lose excess baggage as part of measures to make the carrier "a smaller airline in 2015." In a document, signed by Director of Human Resources Ilean Ramsey, eligible employees were asked to opt to apply for voluntary separation or early retirement packages to avoid being made redundant, according to The Daily Observer. TCRLA reported on Dec. 2, 2014, citing Caribbean360.com, that chairman of the shareholder governments of the financially troubled regional airline LIAT, Dr. Ralph Gonsalves said while he is unaware of the details regarding any possible retrenchment of employees, the airline needs to deal with its high cost of operations. The TCR-LA on March 10, 2014, citing Caribbean360.com, reported that LIAT said it will take "decisive action" to deal with unprofitable routes as the Antigua-based airline seeks to make its operations financially viable. On Sept. 23, 2013, the TCRLA, citing Trinidad and Tobago Newsday, reported that there's much upheaval at the highest levels of LIAT -- the Board and the Executive. Following the sudden resignation of Chief Executive Officer Captain Ian Brunton, David Evans replaced Mr. Brunton as chief executive officer. ============= B O L I V I A ============= * BOLIVIA: Health Minister Steps Down ------------------------------------- Alianza News reports that Bolivian Health Minister Rodolfo Rocabado was sworn in after the former minister, Ariana Campero, decided to step down to prepare for motherhood. Ms. Campero, who had been Bolivia's health minister for three-and- a-half years, said she had decided to step down for "personal and family" reasons, as she is six months pregnant, according to Alianza News. The report notes that Ms. Campero said that she wanted to take care of "her little girl" once she was born rather than to continue an "accelerated pace" as minister. Ms. Campero added that she was certain that the projects the Ministry of Health had started would continue with her successor, the report relays. The new minister, a surgeon who was previously the head of Bolivia's Health Services, was sworn in at the Palace of Government in La Paz before President Evo Morales, the report discloses. The president expressed his willingness to continue implementing policies to improve the public health system, while warning that "some changes are difficult, but necessary," the report relays. As health minister, Ms. Campero had to face several crises, including a long medical strike organized by doctors who objected to an overhaul of the regulatory framework of the medical profession, the report adds. As reported in the Troubled Company Reporter-Latin America on May 28, 2018, S&P Global Ratings lowered its long-term foreign and local currency sovereign credit ratings on Bolivia to 'BB-' from 'BB'. At the same time, S&P affirmed its 'B' short-term foreign and local currency ratings. The outlook on the long-term ratings is stable. =========== B R A Z I L =========== BRAZIL: Economy Grows 1.2% in First Quarter ------------------------------------------- The Latin Herald reports that Brazil's economy grew 1.2 percent in the first three months of 2018, maintaining its slow recovery after the deep recession it suffered in 2015 and 2016, the Brazilian Institute of Geography and Statistics (IBGE) said. The growth rate of the gross domestic product (GDP) of South America's largest economy exceeded economists' projections, who expected a 0.9 percent growth rate in the first quarter, according to The Latin Herald. The year-on-year GDP growth was 1.3 percent, the IBGE said, the report notes. The report relays that GDP grew 1 percent in 2017, the highest rate in four years. The economy expanded at a 3 percent clip in 2013 and an anemic 0.5 percent in 2014 before plunging into recession, the report says. Brazil's economy contracted 3.5 percent in 2015, the worst performance in 25 years, and another 3.5 percent in 2016, marking the first time since 1931 that the gross domestic product (GDP) fell for two consecutive years, the report notes. A government report released estimated a growth rate of 2.5 percent in 2018, a 0.5 percentage point decrease from an earlier projection of 3 percent, the report relays. 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. BRAZIL: Oil Workers Strike, Defying Court Order ----------------------------------------------- EFE News reports that Brazilian oil workers defied a court order on May 30 by launching a three-day strike affecting oil refineries. The FUP, a federation that assembles most of Brazil's oil workers' unions, said in a statement that the top labor court's decision to declare the strike illegal had not "intimidated" workers, according to EFE News. A judge declared the strike illegal because it would be "abusive" and be "carried out to disturb" the population, threatening to impose a BRL500,000 fine ($135,000) in case the strike broke out, the report notes. The report relays that the oil workers strike was organized to support striking truckers, who have been calling on state oil company Petrobras to lower fuel prices, which have sharply increased due to a rise in international crude prices and to the slide in the value of the Brazilian real. The strike, according to the FUP, was also organized to demand the resignation of Petrobras Chief Executive Officer Pedro Parente and to denounce a purported plan by the right-wing government to sell company assets to multinational corporations, the report notes. The oil workers' unions said that the 72-hour work stoppage was a "warning" and that an open-ended strike could ensue if their demands were not met, the report relays. The FUP, however, said that the strike would not lead to a lack of fuel in the country, at a time when the truck driver's strike, which is now in its 10th day, has caused a shortage of basic goods such as gasoline and some foodstuffs, the report says. The Brazilian government and truckers' unions reached an agreement to put an end to the strike, although hundreds of truck drivers have continued to block dozens of roads to demand that the government provide more guarantees that it will lower diesel prices, the report relays. 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. TUPY SA: S&P Alters Outlook to Positive & Affirms 'BB-' CCR ----------------------------------------------------------- S&P Global Ratings revised the outlook on its ratings on Tupy S.A. (Tupy) to positive from stable and affirmed its 'BB-' global scale and 'brA+' national scale corporate credit ratings on the company. S&P said, "At the same time, we affirmed the 'BB-' issue-level rating on the company's 2024 notes issued by Tupy Overseas S.A. The '3' recovery rating on these notes remains unchanged, reflecting our expectation of meaningful recovery (65%) in the event of payment default." S&P said, "The outlook revision reflects our expectation that Tupy will maintain solid profitability and increase its cash flow generation over the next few years, leading to stronger credit metrics of debt to EBITDA close to 2.0x-2.5x by the end of 2018, compared to 3.1x in 2017. These metrics should result from several actions Tupy took last year to improve operating efficiency, including shutting down part of its Mau† plant that increased overall capacity utilization from 55% in 2016 to around 85%-90% in 2017. They should also result from higher volumes and the gradual increase in the share of fully machined products in the company's portfolio, which carry higher margins. As a result, we expect an EBITDA margin of close to 15.0% over the next few years, compared to 14.1% in 2017." ========================== C A Y M A N I S L A N D S ========================== IBC CAPITAL: S&P Affirms 'B' Issuer Credit Rating, Outlook Stable ----------------------------------------------------------------- S&P Global Ratings affirmed its 'B' long-term issuer credit rating on IBC Capital Ltd. The outlook is stable. S&P said, "We also assigned our 'B' long-term issue rating on IBC Capital's proposed US$595 million first-lien term loan, with a recovery rating of '3'. At the same time, we assigned our 'CCC+' long-term issue rating on the company's proposed US$170 million second-lien term loan, with a recovery rating of '6'. We have also affirmed the existing long-term issue ratings on the first and second-lien loans at 'B' and 'CCC+', respectively. The existing issue ratings will be withdrawn when the transaction is complete and the existing debt is refinanced. "The affirmation reflects our view that the transaction would overall be slightly positive for IBC Capital. The transaction will extend the company's weighted-average debt maturity profile to 5.6 years from 3.5 years and is neutral on the company's leverage. It will also increase the liquidity available to the company. Although these factors reduce financial risks somewhat, the company remains highly leveraged." IBC Capital is a holding company incorporated in the Cayman Islands. Its operations mainly involve leasing re-usable steel intermediate bulk containers used in packing, transporting, and storage of cargo. The company is refinancing US$533.5 million in first-lien term loans due in 2021 with US$595 million in first-lien term loans due in 2023. In addition, IBC Capital will use the proceeds to repay US$60.7 million of revolving credit facility borrowings. The maturity on the revolver was extended in March by 1.5 years to 2021 from 2019. The existing US$170 million second-lien loans due in 2022 will also be refinanced with proceeds of US$170 million of new second-lien loans due in 2024. The covenants and terms of the new facilities will be similar to the existing terms. IBC Capital is working to improve the utilization of its fleet and expand in underpenetrated markets. S&P continues to view the business as limited in scale and product diversity in the competitive rubber transport industry. However, the company is gaining market share in rubber transport in India, China, and Japan, while growing the juice and automotive segments. This increased revenue by 8.9% in fiscal 2017 and should allow the business to continue to grow faster than the market. EBITDA should rise in line with or faster than revenue while the company focuses on efficiency. IBC Capital has improved its container tracking system, which has increased route optimization, hire revenue, and compensation for lost or damaged bins. Utilization is also benefitting from pricing new contracts based on the number of days rather than a trip lease rate. S&P said, "We expect IBC Capital's leverage to decline moderately over the next few years. We forecast revenue and EBITDA to grow in the high single digits. Additionally, cash outflows from capital spending are realized on a three-year delay, so the cash flow will soon begin to benefit from lower recent spending levels. This should lead to an adjusted debt-to-EBITDA ratio of about 6.1x at the end of fiscal 2018 in June, and 5.6x by fiscal 2019. "The stable outlook reflects our expectation that IBC Capital's debt-to-EBITDA ratio could stay above 5.5x over the next 12 months, despite a modest increase in EBITDA. "We believe a downgrade is unlikely over the next 12 months. However, we may lower the rating on IBC Capital if the company's EBITDA interest coverage falls sustainably below 1.75x. This would require EBITDA to decline 30%-50% below our base case, causing the company's liquidity profile to deteriorate. "We may upgrade IBC Capital if we see credible prospects for the company's debt-to-EBITDA ratio to remain below 5.5x over the next 12 months. This would require steady top-line growth of 5%-10% and EBITDA margin exceeding 50% sustainably amid reduced capital spending, along with a commitment by Kohlberg Kravis Roberts, a financial sponsor that owns IBC Capital, to reduce leverage." ============= E C U A D O R ============= ECUADOR: S&P Affirms B-/B Sovereign Credit Ratings, Outlook Stable ------------------------------------------------------------------ S&P Global Ratings, on May 29, 2018, affirmed its 'B-/B' long- and short-term foreign and local currency sovereign credit ratings on Ecuador. The outlook remains stable. In addition, S&P affirmed its 'B-' transfer and convertibility (T&C) assessment for Ecuador. OUTLOOK The stable outlook is based on S&P's expectation that Ecuador will gradually lower its fiscal deficit to ensure financing from both official and commercial external lenders ahead of the next principal payment on its sovereign bond that comes due in 2020. S&P also assumes the government will work to attract private investment and slow the increase in its debt burden. These prospects would balance the risks arising from managing cross- party dynamics in the National Assembly and limited financing options in the local market. Failure to reduce the country's fiscal imbalances over the next 12 months could weaken credit quality because it would likely lead to deterioration in the availability of financing from private creditors in a context in which the government faces a US$1.5 billion amortization payment in 2020. Downward pressure on the rating could also arise from persistent lower-than-expected growth that reduces Ecuador's GDP per capita or further worsens its fiscal profile. Conversely, S&P could raise the ratings over the next 12 months if growth prospects strengthen following improved private-sector confidence and vis-Ö-vis peers, which would also lower the government's fiscal deficit beyond our base-case forecast. An improvement in Ecuador's external profile, amid a more robust export performance and accumulation of international reserves, or in our assessment of its institutional framework and commitment to stronger policy outcomes that enhances debt repayment capacity could also lead to a positive rating action. RATIONALE Since assuming office in May 2017, President Lenin Moreno signaled a more pragmatic policy approach and intentions to gradually lower Ecuador's fiscal deficit and strengthen its economy. In May 2018, a year after assuming office, the president presented to the National Assembly the economic bill, which aims at incentivizing production, attracting investments, and achieving fiscal stability. S&P said, "We expect these efforts, along with more favorable oil prices, to result in a slow narrowing of fiscal deficits in the next two to three years and some acceleration of economic activity. Nevertheless, that the government's financing needs cannot be met locally, leaving Ecuador dependent upon external financing from official and commercial creditors, weighs on our ratings. In addition, our ratings on Ecuador continue to be limited by institutional weaknesses, vulnerability to external shocks, and lack of monetary and exchange rate flexibility." While economic growth is slowly recovering, it remains below that of peers with a similar level of economic development. Institutional and economic profile: Institutions and slow economic growth remain credit weaknesses despite recent improvements in business environment -- President Moreno has shown inclination for enhanced fiscal transparency and gradual policy correction -- The need to build cross-party coalitions and more complex political dynamics within Alianza Pais under President Moreno could limit the government's capacity to implement fiscal and economic adjustments. -- S&P expects economic activity to slow somewhat in 2018, as fiscal stimulus diminishes, but pick up thereafter. During his first year in office, President Moreno has introduced gradual policy changes, building new bridges with the private sector, the business community, and the press. President Moreno's anticorruption and antiauthoritarian platform underpinned high approval ratings until recently. His popularity has taken a hit given worsening security conditions along the Colombian border, as well as concerns over the economy and the fiscal situation. President Moreno, formerly a protege of ex-President Rafael Correa, has been systematically distancing himself from Mr. Correa and his close political allies. On Feb. 4, 2018, President Moreno handily won a referendum that introduced a package of constitutional reforms. Among other measures, voters agreed to eliminate indefinite reelection (thus preventing Mr. Correa from seeking reelection) and restructure the Consejo de Participaci¢n Ciudadana y Control Social (CPCCS), a body responsible for appointing top judicial and regulatory positions that did not fulfil its mandate of improving the accountability and check and balances mechanisms under the previous administration. In the run-up to the referendum, the center-left Alianza Pa°s (AP) party, which dominated Ecuador's political system since it was founded by Mr. Correa in 2006 through his time in office (2007- 2017), split with Mr. Correa's supporters, forming a new party. AP remains the largest party in the National Assembly, with 44 legislators out of 137, but President Moreno also counts on the support of a group of smaller parties. Increasing political divisions weigh on governability and predictability. President Moreno faces the challenge of how to pursue a deeper fiscal adjustment and better relations with the private sector while maintaining support from AP legislators and building bridges with minor center-right opposition parties. On the other hand, less concentration of power, leading to a stronger system of checks and balances, would permit a consolidation of Ecuador's institutions, which have been hurt by a decade of interventionist policies. Recent developments indicate a greater willingness by the government to improve transparency, which has improved private- sector confidence in Ecuador. These include the Comptroller Office's audit of Ecuador's public debt issued between January 2012 and May 2017. Following recommendations of this audit, the ministry of finance recently published a detailed debt statistics bulletin. Nevertheless, only a recent track record of timely payment of a sovereign bond in December 2015 and continued arrears with the private sector demonstrate a weaker track record in meeting sovereign obligations compared with peers and higher-rated sovereigns. In 2017, real GDP growth of 3% reflected fiscal stimulus and credit growth underpinned by the expansion of the central bank's balance sheet. S&P said, "In 2018, we expect growth to slow to 2% on a reduced fiscal stimulus, in a context of more constrained financing conditions, and decreased credit growth. However, more favorable oil prices should support economic activity as well as the fiscal and external accounts. We project that per capita income will be US$6,234 in 2018." S&P expects real GDP to post small but consistent gains during 2019-2021, largely as a result of improved confidence in the private sector and higher earnings from the oil sector (resulting both from a stabilization in oil prices and modest increase in production). Ecuador is planning to increase crude production by 5% in 2018-2019 by adding production from its ITT (Ishpingo, Tambococha, and Tiputini) field in the Amazonian region. In its economic plan announced April 2018--and presented to the National Assembly with additional measures in May 2018--the government has outlined a series of tax incentives and policy changes to increase private investment in the oil and non-oil sector. Some of the main features of the bill comprise eight to 10 years of income tax exceptions for new investments (three years for new startups and microbusinesses) and the elimination of the corporate income tax advanced payment starting in 2019. Regarding the oil sector, the government expects US$1.8 billion of additional revenues following the renegotiation of oil facility contracts with Chinese and Thailand companies, as well as investments in new oil camps for US$1.5 billion. The economic bill will be voted on in the Assembly in the coming weeks. Higher GDP growth, above 3%, over the medium term will depend on a track record of sustained political stability, reduction of fiscal and external vulnerabilities, and continued improvement of investors' confidence. Labor market reform could bolster growth prospects, helping the private sector remain competitive through lower labor costs and preventing further loss of employment. In view of its 10-year weighted average real GDP per capita growth of 0.8% per year, S&P assesses Ecuador's economic performance to be weaker than that of other countries with similar GDP per capita. Flexibility and performance profile: Amid, albeit slow, fiscal adjustment, S&P assumes Ecuador will maintain access to external financing: -- S&P expects Ecuador to slowly improve its fiscal position and stabilize its debt burden ahead of its 2020 amortization payment. -- S&P expects the current account to show balanced results in 2018-2020 on average, given more favorable external conditions. -- S&P expects Ecuador to remain committed to dollarization. Ecuador's Finance Minister Richard Martinez presented the main aspects of the draft economic bill unveiled by President Moreno in his state of the nation address. Mr. Martinez, who has strong links with the business community in Ecuador, was recently appointed to replace Maria Elsa Viteri. According to the bill, the government will implement a stabilization plan to achieve a primary balance by 2021. Efforts will center on reducing primary spending, although few specific measures have been disclosed at this stage. In the initial economic program presented in April 2018, the government outlined that the fiscal targets would be achieved through expenditure cuts of around $1 billion per year, as well as a focus on improved tax collection to generate savings on the revenue side. As a more tangible measure, the government announced a series of mergers, restructurings, and eliminations of ministries and state-owned companies. The recent debt audit concluded that public-sector debt was much higher than official estimates (prior to the release of the last debt statistics bulletin through April 2018) and the legal limit of 40% of GDP. During the stabilization period, the debt ceiling will be suspended. Following the stabilization period, Ecuador will seek to reach primary surpluses to reduce debt toward the 40% of GDP legal limit. Afterwards, the debt ceiling will be reestablished and the government will not be authorized to introduce budgets with primary deficits. In addition, it will have to create a stabilization fund with the surplus revenues from the country's oil proceeds. Overall, S&P's projections for 2018-2021 are slightly more conservative than the government's given implementation challenges and Ecuador's current spending rigidities. S&P said, "In 2017, the general government deficit (we exclude the nonfinancial public-sector enterprises from the official definition of the nonfinancial public sector) narrowed to 5.2% of GDP from 5.8% in 2016. Ecuador's fiscal position has deteriorated since 2014 as oil prices plummeted. We estimate that the general government deficit will be 5.1% of GDP in 2018, almost stable compared to 2017, and could decrease toward 3.7% of GDP in 2019- 2020 (on average). We expect that the average change in net general government debt for 2018-2021 will be 3.3%, with a decreasing trend as a result of declining government deficits." In recent years, the government has relied increasingly on external bond issuances given its limited ability to borrow locally. Identified financing sources for this year comprise global bonds, domestic debt rollovers, and bilateral and multilateral loans. The magnitude of the government's financing needs and reliance on external creditors render Ecuador vulnerable to adverse shifts in market sentiment amid global financial market volatility. S&P said, "However, during 2018-2019, we view rollover risk as contained because official creditors account for all amortization of external debt. Ecuador's next global bond amortization payments are due in 2020. By then, we expect some improvement in the overall fiscal profile." S&P said, "We project that net general government debt could rise to 49% of GDP in 2018, from 45% in 2017, and stabilize around 52% in 2019-2021. We include in our debt calculation the sovereign debt held by IESS and the central bank because it represents a material amount of Ecuador's domestic debt and reflects the lack of market buyers of domestic debt. We also include in our general government calculations the estimated outstanding amount of CETES (Treasury certificates), the estimated debt outstanding for oil presales, and the International Monetary Fund loans." Those are considered "other liabilities" by the government and have not yet been included in the official debt figures. Since late 2016, the authorities changed the definition of government debt to a consolidated basis, excluding government debt owed by other public entities such as the social security institute (IESS) and the central bank. However, since April 2018, the government followed the recommendation of the ccomptroller's office to include the aggregate domestic debt figures in the official statistics. In addition, the economic bill prohibits the central bank from absorbing public-sector debt. S&P said, "We assume that the general government interest payments will account for around 7% of revenue in 2018-2021 as a result of the increased debt stock and tightening in global monetary conditions. We assess contingent liabilities from the financial sector and nonfinancial public enterprises as limited." Other contingent liabilities are also limited and include, among others, arrears to providers, state-company Petroamazonas arrears, government debt with oil service providers, and its debt to oil company Schlumberger. The sharp rise in domestic demand in 2017 along with the removal of import restrictions in May 2017 moved the current account back into negative territory (-0.3% of GDP). S&P said, "In 2018, we expect the current account to show a small surplus of 0.2% as exports will be supported by a rise in oil prices and a pickup in global growth. In addition, new custom duties will limit import growth. We estimate that the country's gross external financing needs will average 123% of current account receipts (CARs) and usable reserves over the next two years, up from 115% in 2017." S&P said, "The country's external profile remains vulnerable to pronounced volatility of its terms of trade. We expect foreign direct investment inflows to increase slowly and exceed 1% of GDP in 2019-2021, and be mostly oriented to extractive sectors. During this period, we assume that the increase in external indebtedness will progressively slow as a result of the fiscal consolidation and the stabilization of the current accounts. We project that Ecuador's narrow net external debt will increase to about 123% of CARs in 2018 from 116% in 2017. The country issued a new US$3 billion international bond in January 2018, which helped boost foreign reserves temporarily. However, their rapid decline (US$3.2 billion, excluding gold, as of May 4, 2018, from US$4.9 billion at the end of January) seems to be tied to outflows from the private and the public sectors. "We expect that Ecuador will continue to use the U.S. dollar as its currency. We believe that the government is committed to this arrangement despite the economic costs of an inflexible monetary regime. Dollarization has helped anchor inflation and stabilize the financial system to the detriment of the competitiveness of the country. Consumer price inflation was 2.9% on average over the past five years, and it declined to 0.4% on average in 2017. We expect inflation to remain modest in 2018 at 1% on average because of weaker consumption and a relatively strong dollar, which will limit imported inflation." The banking system exhibits sound liquidity, which allows it to compensate for the risk of liquidity shocks and the absence of a lender of last resort. Deposit and credit growth has shown a strong performance, although S&P expects`it to slow. Ecuador makes use of capital controls. The government is aiming at gradually reducing the capital outflow tax, currently set at 5%, subject to economic performance. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Ratings Score Snapshot above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. RATINGS LIST Ratings Affirmed Ecuador Sovereign Credit Rating B-/Stable/B Transfer & Convertibility Assessment B- Senior Unsecured B- ============= J A M A I C A ============= JAMAICA: Glut of Some Agricultural Produce Says Hutchinson ---------------------------------------------------------- RJR News reports that there is now a glut of some agricultural produce in sections of Jamaica. This was disclosed by Minister without portfolio in the Agriculture Ministry, JC Hutchinson, during his contribution to the Sectoral Debate, according to RJR News. He disclosed that while there is a glut in some areas others are experiencing a shortage, the report notes. "Escallion is an example where in south St. Elizabeth and South Manchester, is being sold for a maximum of $40 a pound. While in Portland and St. Mary, the going price for the same product is over $100 a pound in some areas. The lack of structured distribution network for local agricultural production is the problem," he said, the report notes. Insurance Program Meanwhile, after being on the drawing board for years, plans are now being made for the development of a crop loss and farm insurance program in Jamaica, the report relays. Hutchinson said a concept document outlining the mechanism for off-budget financing of the program has been developed, the report relays. He told the House that stakeholder consultation has commenced, and the second draft will be available soon, the report adds. As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2018, Fitch Ratings has affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B' and has revised the Rating Outlook to Positive from Stable. =========== M E X I C O =========== MEXICO: Should Pay for Border Wall, Trump Insists ------------------------------------------------- EFE News reports that the President of the United States insisted on his idea that he will have Mexico pay for the construction of the wall he promised to build on the southern border with Mexico. "I don't want to cause a problem, but in the end, Mexico's going to pay for the wall," Donald Trump said at a campaign rally amid his supporters in Nashville, Tennessee, adding that "they will enjoy it," according to EFE News. ======= P E R U ======= PESQUERA EXALMAR: Moody's Rates $60.9MM Unsec. Notes 'B3' --------------------------------------------------------- Moody's Investors Service assigned a B3 rating to Pesquera Exalmar, S.A.A.'s $60.9 million senior unsecured notes due 2025. Proceeds from the notes were used to refinance existing debt. The outlook on the rating is stable. RATINGS RATIONALE Exalmar's B3 ratings incorporate primarily the company's vulnerability to climatic conditions and fishing quotas regulation; a pronounced cash flow seasonality; and its limited operating scale and modest business diversification compared to regional peers as well as other seafood and protein-industry companies. The rating also reflects the exposure to volatile volume and price trends of the commoditized global fishmeal and fish oil market. These credit negatives are to some extent offset by Exalmar's position as the third largest fishmeal producer in Peru, the world's leading fishmeal nation; a successful operating history in its current business configuration; and some revenue diversification from its direct human consumption business. Exalmar's volumes and thus its cash flow critically depend on the level of the catch of anchovies, the company's main raw material, which varies with the total allowable catch set prior to each fishing season by PRODUCE, the Peruvian Ministry of Production. Anchovy catch levels vary because of changing climatic conditions, in particular by the El Nino or La Nina effects. The high presence of juveniles in anchovy biomass led to a low 2nd fishing quota in 2017 of 1.5 million metric tons (MT) and fishing bans in November- December 2017 which affected Exalmar's inventory levels in 2017 (0.6 thousand MT as of December 31, 2017). During January to March 2018 inventories recovered but were still low when compared to the year before. Exalmar's inventory as of March 31, 2018 were 20.5 thousand MT, down from 64.4 thousand MT a year before. Moody's estimates that inventory levels will recover in 2018 as the 1st fishing season of the year was set at 3.3 million metric tons; more than double when compared to the last fishing season of 2017. In addition, according to the most recent report from Peru's federal climate agency ENFEN, seawater temperature in front of the Peruvian coast continues within normal levels. ENFEN estimates that in May-July some warm Kelvin waves could generate weak anomalies in seawater temperature. Nevertheless, it maintains its expectation that neutral conditions will remain with no alerts for a possible El Nino/La Nina event. As a result, Moody's estimates that the next fishing season will be set around 2-2.5 million metric tons given this more stable environment. The company's credit metrics in the 1Q18 were affected by low starting inventory levels in the year. Nonetheless, the higher fishing quota in the 1st season of the year combined with Moody's expectation that normal seawater conditions will lead to a stable 2nd fishing season will benefit Exalmar's operation in 2018. Exalmar's adj. debt/EBITDA was 6.4x as of March 2018 with adj. EBITDA margin of 17% over the twelve months ended March 2018. Absent severe weather conditions, Moody's estimates adj. debt/EBITDA to decline below 4x by year-end 2018 and remain around 3.5x in 2019. Similarly, profitability will further improve with EBITDA margin recovering to 24%-25% in 2018-2019. Exalmar's liquidity is negatively affected by cash flow seasonality caused by the working capital build-up that tends to occur during Peru's two anchovy fishing seasons in the second and fourth calendar quarters and the subsequent cash inflow when inventories are shipped in the first and third quarters. Exalmar typically funds these working capital needs with uncommitted credit facilities with local and international banks. In addition, the company has a $20 million committed credit facility that is fully available. Moody's notes that the use of committed credit facilities is not a common practice in Latin America so it positively views Exalmar's actions to ensure a strong alternate source of liquidity. Exalmar reported cash on hand of $4 million as of March 31, 2018 that can cover only 13% short-term debt. However, short-term debt is comprised by working capital related debt that is secured by inventory and receivables. As a result, the company's cash on hand, inventory and receivables provide a 1x coverage of its short-term debt as of the same date. The company's lack of dividend payments and maintenance capex support its positive free cash flow over the twelve months ended March 31, 2018. Exalmar has a comfortable long-term debt maturity profile: $110 million due 2020, $23 million due 2022, and $61 million due 2025. The stable ratings outlook reflects Moody's expectation that the company's profitability and credit metrics will improve absent any strong weather event that results in a decline on the fishing quota or cancelation of a fishing season. An upgrade would require an improvement in the company's liquidity cushion to withstand adverse impacts on operations due to adverse weather conditions. An upgrade would also be dependent on the company's ability to generate positive cash flow while maintaining robust credit metrics on a sustainable basis with debt/EBITDA below 4.0 times. A prolonged period of negative free cash flow generation with material additional external funding needs, for example because of the impacts of quotas cancellation, an abrupt deterioration of global fishmeal demand or anchovy supply would cause downward pressure on the ratings. An increase in adj. debt/EBITDA over 7.0 times for a prolonged period of time with no expectation of reduction in the medium term could also lead to a downgrade. The principal methodology used in this rating was Global Protein and Agriculture Industry published in June 2017. Founded in 1992, Pesquera Exalmar, S.A.A. is a Peruvian fishing company which produces fishmeal and fish oil used for indirect human consumption. In addition, Exalmar also sells fresh and frozen fish (mackerel, horse mackerel, giant squid, and mahi-mahi) for direct human consumption. Exalmar has a 6.7% assigned quota in the north-center of Peru and the ability to process third-party catch, which increases its overall participation in the market. This positions the company as the 3rd. largest fishing player in Peru in terms of processed anchovy. Exalmar is majority owned (71%) and controlled by its founder, Victor Matta Curotto, and the 29% balance is publicly traded in the Lima stock exchange. For the twelve months ended March 31, 2018, the company reported revenues of $198 million. ====================== P U E R T O R I C O ====================== ENTERPRISE BUSINESS: Plan Discloses Settlement Deal with TCAC2 -------------------------------------------------------------- Enterprise Business Corporation filed with the U.S. Bankruptcy Court for the District of Puerto Rico a disclosure statement and summary of its amended plan of reorganization. Since the filing of the bankruptcy petition the Debtor has engaged in settlement conversations with its main secured creditor, Triangle Cayman Asset Company 2 in order to be able to provide treatment to the secured claim in a fashion acceptable to Triangle which would lead to a more expeditious confirmation of the proposed Plan of Reorganization. After multiple discussions, the parties were able to reach an agreement for the treatment of Triangle's claim. The same was filed on March 14, 2018, and approved by the Court of April 13, 2018. Triangle's secured claims are classified in Class 6 and 7 under the plan. The Debtor proposes to pay Triangle's secured claims as per the terms and conditions of the Settlement Agreement approved by the Bankruptcy Court. Class 9 under the plan consists of the general unsecured claims including deficiency claims. As of this date claims have been filed under this class in the amount of $599,475.55, including the deficiency claim of Triangle in the amount of $591,474.55. Members of this class shall be paid 5% of their allowed claims in 60 equal consecutive monthly installments from the Effective Date. The proposed plan will be funded with Debtor's own assets, the surrendering or sale of the real property as per the agreement being negotiated with Triangle, the collection of any account receivables, Debtor's cash in bank and funds from Debtor's post-petition operations. Debtor's shareholders will provide additional capital input to fund the plan, namely the payment to administrative claims, general unsecured creditors and priority creditors. In the event an agreement with Triangle is reached, Debtor's shareholders will acquire Property 30835. A full-text copy of the Disclosure Statement is available at: http://bankrupt.com/misc/prb17-05940-11-57.pdf A full-text copy of the Amended Plan of Reorganization is available at: http://bankrupt.com/misc/prb17-05940-11-58.pdf About Enterprise Business Enterprise Business, Corp., owns a fee simple interest in a single story building located at Sabalos Ward (Folio 149, Tomo 1024 De Mayaguez) valued at $310,000. It is also the fee simple owner of a car wash located at Betances Street (Folio 26, Tomo 1535, De Mayaguez) valued at $471,000. The Company previously sought bankruptcy protection on Sept. 21, 2015 (Bankr. D.P.R. Case No. 15-07259) and Dec. 17, 2013 (Bankr. D.P.R. Case No. 13-10452). Enterprise Business Corporation, based in Mayaguez, Puerto Rico, filed a Chapter 11 petition (Bankr. D.P.R. Case No. 17-05940) on Aug. 23, 2017. In the petition signed by Ivan Torres Nazario, president, the Debtor disclosed $1.03 million in assets and $1.37 million in liabilities. Carmen D Conde Torres, Esq., at C. Conde & Assoc., serves as the Debtor's bankruptcy counsel. HUSKY INC: Restated 2nd Amended Plan Discloses Agreement with SBPR ------------------------------------------------------------------ Husky, Inc., and Christian Elderly Home, Inc., filed with the U.S. Bankruptcy Court for the District of Puerto Rico their amended and restated second amended consolidated plan of reorganization. The Debtors, on April 6, 2018, filed their second amended consolidated plan of reorganization, which provided, among other matters a revised treatment to Scotiabank Puerto Rico under Class 5, 7 and 8. The Debtors and Scotiabank of Puerto Rico has been in negotiations for the treatment of Claims No. 3 and 6 for several months. Since no agreements were reached prior to the Confirmation Hearing, the Debtors submitted the Second Amended Plan where the Debtors proposed to surrender the collateral in payment to Scotiabank de Puerto Rico, as the indubitable equivalent, under Class 5, and any deficiency to be paid under Class 7. The Debtors also created a new Class 8, with the intent of subordinating Scotiabank's deficiency claim, if allowed by the Court. On April 10, 2018, the Court held the Confirmation Hearing wherein the Debtors and Scotiabank had the opportunity to discuss for the last time a possible agreement, which is described in the revised and amended plan. The agreement as stated by the Debtors and confirmed by Scotiabank before the Court on the Confirmation Hearing is incorporated into the amended and restated second amended consolidated plan. In summary, the Settlement Agreement provides as follows: (a) SBPR Allowed Claim will be deemed to consist of(i) an allowed secured claim in the amount of $4,060,000 and (ii) an allowed unsecured deficiency claim in the amount of $3,409,869.09. Notwithstanding the above, the Debtors and SBPR have agreed that the Debtors will only consider only half (50%) of the SBPR Deficiency Claim to receive treatment under Class 7 of the Approved Plan. SBPR is waiving the other half (5 0%) of the SBPR Deficiency Claim. Debtors will also be permitted to discount from SBPR's Deficiency Claim, the payment to CRIM in the amount of$52,272.57 for their allowed secured claim in Class 2 to be paid under the Approved Plan. For avoidance of doubt, the SBPR Deficiency Claim will be capped at $1,678,798.26 and will receive payment pro rata under Class 7 of the Plan based on a 3% payment of $1,678,798.26 in 84 months. (b) SBPR will retain the insurance proceeds due to Hurricane Maria from the Policy, for the claims over the Transferred Assets which consists of real property. Debtors agree to cooperate with SBPR in the claims process of the Policy and to execute any documents required by the insurance company or SBPR to complete the claims process under the Policy. (c) On the Effective Date, the SBPR Secured Claim shall be satisfied by the transfer to SBPR of the Transferred Assets, pursuant to the Settlement Agreement, and the terms of the Plan. The transfer of the Transferred Assets will be free and clear of all Liens, Claims, encumbrances, charges and other interests of any kind, extent, or nature. A copy of the Amended and Restated Second Amended Consolidated Plan is available at: http://bankrupt.com/misc/prb-17-02559-11-145.pdf About Husky Inc. Husky, Inc., based in Gurabo, Puerto Rico, is the 100% owner of Christian Elderly Home, Inc., having a current value of $1 million. It also owns a 2,320 square-meter lot with concrete building for storage located at Barrio Rincon and valued at $300,000. Husky and Christian Elderly filed separate Chapter 11 petitions (Bankr. D.P.R. Case Nos. 17-02559 and 17-02561) on April 12, 2017. Edgardo Garcia Rosario, president, signed the petitions. In its petition, Husky disclosed $1.32 million in assets and $7.63 million in liabilities. Christian Elderly disclosed $1.04 million in assets and $7.5 million in liabilities. Judge Enrique S. Lamoutte Inclan presides over the cases. Carmen D. Conde Torres, Esq., at the Law Offices of C. Conde & Associates, is the Debtors' bankruptcy counsel. KAMA MANAGEMENT: June 6 Plan Confirmation Hearing ------------------------------------------------- Judge Mildred Caban Flores of the U.S. Bankruptcy Court for the District of Puerto Rico has conditionally approved the disclosure statement explaining KAMA Management, Inc.'s amended Chapter 11 small business plan. A hearing for the consideration of the final approval of the Disclosure Statement and the confirmation of the Amended Plan and of any objections as may be made to either will be held, for cause, on June 6, 2018 at 9:00 a.m. General unsecured claims are not secured by property of the estate and are not entitled to priority under Section 507(a) of the Bankruptcy Code. This class will receive a pro-rata distribution of $5,000. The Debtor's will pay from ongoing sales operations. A full-text copy of the Disclosure Statement is available at: http://bankrupt.com/misc/prb16-08008-134.pdf About Kama Management Kama Management Inc., a "small business debtor", filed a Chapter 11 petition (Bankr. D.P.R. Case No. 16-08008) on Oct. 5, 2016. Alberto Perez Pujals, president, signed the petition. At the time of filing, the Debtor disclosed total liabilities of $1.45 million. Maria Soledad Lozada Figueroa, Esq., at Lozada Law & Associates, LLC, is the Debtor's counsel. QUICK COMMERCIAL: Taps JPC Law Office as Legal Counsel ------------------------------------------------------ Quick Commercial Inc. received approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire JPC Law Office as its legal counsel. The firm will advise the Debtor regarding its duties under the Bankruptcy Code; assist the Debtor in negotiations with creditors for the purpose of achieving a reorganization or an orderly liquidation; and provide other legal services related to its Chapter 11 case. Jose Prieto Carballo, Esq., the attorney who will be handling the case, charges an hourly fee of $175. His firm received a retainer of $7,000, plus $1,717. Mr. Carballo disclosed in a court filing that he and his firm neither hold nor represent any interest adverse to the Debtor or its estate. The firm can be reached through: Jose M Prieto Carballo, Esq. JPC Law Office P.O. Box 363565 San Juan, PR 00936-3565 Tel: 787-607-2066 Email: jmprietolaw@gmail.com Email: jpc@jpclawpr.com About Quick Commercial Inc. Quick Commercial Inc. filed as a single asset real estate (as defined in 11 U.S.C. Section 101(51B)). It is the 100% owner of a two-story commercial building with parking space in Guaynabo, Puerto Rico, having an appraised value of $800,000. Quick Commercial sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. P.R. Case No. 18-01865) on April 6, 2018. In the petition signed by Maylin Fiallo Perez, president, the Debtor disclosed $1.15 million in assets and $648,977 in liabilities. Judge Brian K. Tester presides over the case. STAR BODY: Case Summary & 7 Unsecured Creditors ------------------------------------------------ Debtor: Star Body Expert Inc. dba Star Auto Paint Center 2 Rd Km 20.1 Candelaria Ward Toa Baja, PR 00949 Business Description: Star Body Expert, Inc. operates an auto body shop in Toa Baja, Puerto Rico. Founded in 1984, the company recently added a store specializing in auto paints sold to other shops. Star Body Expert previously sought protection from creditors on Aug. 11, 2015 (Bankr. D. P.R. Case No. 15-06125). Chapter 11 Petition Date: May 29, 2018 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Case No.: 18-02960 Judge: Hon. Brian K. Tester Debtor's Counsel: Gerardo L. Santiago Puig, Esq. GSP LAW, P.S.C. Doral Bank Plaza Suite 801 33 Resolucion St San Juan, PR 00920 Tel: 787-777-8000 Fax: 787-767-7107 E-mail: gsantiagopuig@gmail.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Carlos Oliveros, president. A full-text copy of the petition containing, among other items, a list of the Debtor's seven unsecured creditors is available for free at http://bankrupt.com/misc/prb18-02960.pdf ================= V E N E Z U E L A ================= VENEZUELA: S&P Affirms CCC- Sovereign Credit Rating, Off Watch Neg ------------------------------------------------------------------ S&P Global Ratings, on May 29, 2018, removed its long- and short- term local currency sovereign credit ratings on Venezuela from CreditWatch with negative implications and affirmed them at 'CCC- /C'. The outlook on the long-term local currency rating is negative. At the same time, S&P affirmed its 'SD/D' long- and short-term foreign currency sovereign credit ratings on Venezuela. Our transfer and convertibility assessment remains at 'CC'. OUTLOOK S&P said, "Our negative outlook reflects our opinion that there is a one-in-three chance that Venezuela could default within the next six months on its local currency debt obligations. "If the sovereign cures its default on the overdue foreign currency coupon payments or the announced restructuring debt operation moves forward and is completed, we would raise our long- term foreign currency sovereign issuer credit and issue ratings from 'SD' and 'D', respectively, to the 'CCC' category or 'B-'." RATIONALE President Nicolas Maduro was elected for a second six-year presidential term on May 20, 2018. The election was marked by a turnout below 50%, the absence of the most important opposition parties given the lack of guarantees from the government for a fair and open election, and a fraud allegation. Most Latin American countries, the U.S., and the EU will not recognize the electoral outcome. The lack of recognition from the international community will aggravate Venezuela's isolation. S&P said, "Moreover, we do not expect a correction on the poor policy choices that have led to a severe economic crisis, hyperinflation, institutional breakdown, and social unease. We would expect the Venezuelan government to rely on monetary financing, making less uncertain the timing of default on its domestic debt issuances. As a result, we removed our local currency ratings from CreditWatch negative." Since the Mesa de la Unidad Democratica (MUD, a conglomerate of main opposition parties) won a strong majority for the National Assembly in December 2015, President Nicolas Maduro and his party (United Socialist Party of Venezuela, Spanish acronym PSUV) have radicalized and consolidated power at the presidential level. The legislative and judicial powers, the general prosecutor office, electoral authorities, PDVSA (Petroleos de Venezuela), and the central bank are controlled by Maduro and his allies. The Venezuelan economy remains under significant strain amid hyperinflation. S&P said, "We expect inflation to surpass 10,000% in 2018. We expect real GDP to contract by at least 4% in 2018, after an estimated decline of 8% in 2017." GDP per capita has fallen below US$1,000 when applying the unrestricted foreign exchange rates. Oil-related activities have a significant influence on the economy and have been hurt by the end of the commodity boom. Historically, oil activity represented at least 15% of total GDP, and its weight is likely even higher now given the reduction in non-oil GDP; oil accounts for over half of government revenues and 95% of exports. Given a lack of investment, oil production has been estimated below 1.5 million barrels per day (mpd) in 2018, from 2.6 mpd in 2015. There are significant gaps and inconsistencies in officially reported data." As oil exports have declined, Venezuela's authorities continue to tighten pervasive controls on imports in an effort to mitigate the lack of external financing and declining international reserves. S&P said, "Venezuela's central bank reported international reserves totaling $9.5 billion at year-end 2017, while we estimate non-gold reserves at $2 billion. We project gross external financing needs to average over 200% of current account receipts (CAR) plus usable reserves and narrow net external debt above 200% of CAR during 2018-2021." Venezuela's lack of access to global debt markets is exacerbated by U.S. sanctions, which have prevented Venezuela from restructuring its global bonds and limit the government's ability to liquidate external assets. S&P said, "Our assessment of Venezuela's fiscal position is among the weakest of the sovereigns we rate. We expect the deficit and change in debt to be around 20%-25% of GDP in 2018. In our view, Venezuela's fiscal stance is further impaired by a volatile and unsustainable revenue base (namely oil), a limited ability to raise revenues given the severe economic crisis has affected most productive sectors of the economy, and a shortfall in basic services and infrastructure, as noted by widespread shortages, refugee outflows, and social unrest. Assuming that Venezuela's exchange rate depreciates at estimated inflation, Venezuela's net general government debt could double by 2021 from the 18% of GDP estimated at year-end 2017. We expect interest payments of around 20% of general government revenue in 2018." The combination of poor monetary, fiscal, and other policies has resulted in hyperinflation. Venezuela moved in February 2018 from a dual exchange rate arrangement to a foreign currency auction system with a floating rate, which has been allowed to depreciate. Nevertheless, extensive foreign exchange restriction remains, and the amount of foreign currency offered by the authorities has been scarce, resulting in an active black market. Unrestricted rates are currently trading above Venezuelan bolivar (VEF) 800,000/US$1, from VEF200,000/US$1 in February 2018. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Ratings Score Snapshot above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. RATINGS LIST Ratings Affirmed; CreditWatch Action To From Venezuela Sovereign Credit Rating Local Currency CCC-/Negative/C CCC-/WatchNeg/C Ratings Affirmed Venezuela Sovereign Credit Rating Foreign Currency SD/--/D Transfer & Convertibility Assessment CC Senior Unsecured D *********** 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. 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