/raid1/www/Hosts/bankrupt/TCRLA_Public/180904.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     L A T I N   A M E R I C A

          Tuesday, September 4, 2018, Vol. 19, No. 175


                            Headlines



A R G E N T I N A

ARGENTINA: S&P Puts 'B+/B' Sovereign Credit Ratings on Watch Neg.
ARGENTINA: IMF Supports Policy Efforts, Managing Director Says


B R A Z I L

BANCO SANTOS: Administrator's Artworks Sale Conditionally Approved
RUMO SA: Granted Sao Paulo Railroad Extension


D O M I N I C A N   R E P U B L I C

DIGICEL GROUP: Fitch Cuts LT IDR to C, Outlook Negative
DOMINICAN REPUBLIC: 'Hobbled' Pension System Must Cut Distortions


J A M A I C A

DIGICEL GROUP: Discloses Exchange Offers


M E X I C O

RASSINI AUTOMOTRIZ: Fitch Hikes IDRS to BB, Outlook Stable


P U E R T O    R I C O

COOPERATIVA DE SEGUROS: A.M. Best Lowers FS Rating to C (Weak)
DISTRIBUIDORA LEQUAR: Case Summary & 20 Top Unsecured Creditors


T R I N I D A D  &  T O B A G O

PETROLEUM CO: Bourse Examines Firm's Recent Developments
TRINIDAD & TOBAGO: ECLAC Sees 1.5% Growth in 2018


                            - - - - -



=================
A R G E N T I N A
=================


ARGENTINA: S&P Puts 'B+/B' Sovereign Credit Ratings on Watch Neg.
-----------------------------------------------------------------
On Aug. 31, 2018, S&P Global Ratings placed its 'B+' long-term and
'B' short-term sovereign credit ratings on Argentina on
CreditWatch with negative implications. At the same time, S&P
placed its 'raAA' national scale rating on CreditWatch negative
and affirmed its 'BB-' transfer and convertibility assessment.

CREDITWATCH

The CreditWatch negative reflects the risk of worsening
creditworthiness due to potentially weakened implementation of the
government's strategy to stabilize the economy. Exchange rate
volatility, as shown by recent pressure on the Argentine currency,
could jeopardize the effective implementation of economic
adjustment measures, absent further steps to boost investor
confidence. S&P expects to resolve the CreditWatch within 90 days.

President Mauricio Macri's administration's commitment to
stabilize the economy through difficult austerity measures,
including its decision to enter into a $50 billion standby
agreement with the International Monetary Fund (IMF) in June of
this year, should help sustain investor confidence and maintain
the government's access to capital markets for funding its large
fiscal deficits. The availability of greater official external
funding, the government's own foreign exchange reserves (currently
above US$53 billion), and effective implementation of corrective
economic measures would help reduce exchange rate volatility.
That, in turn, would help stabilize the economy, contain and
gradually reduce inflation, and subsequently contribute to
positive economic growth.

Developments that weaken policy credibility could have a negative
impact on inflation expectations, which, in turn, could raise the
risk of capital flight and put further pressure on the exchange
rate. The combination of persistently high inflation and exchange
rate pressures could undermine the government's fiscal adjustment
strategy and increase its debt burden, leading to a downgrade.

S&P could keep the credit rating at its current level if the
government were to successfully reinforce policy credibility,
thereby containing pressures on the currency and allowing the
authorities to gradually set the stage for an economic recovery
next year. Among other things, steps that boost the market
credibility of the sovereign's funding strategy in the coming year
could alleviate concerns about the risk of government debt
rollover. They could also anchor expectations about inflation and
help to reverse recent worsening of inflation dynamics. Effective
implementation of corrective economic policies amid a difficult
political environment would also lead to better policy
predictability and continuity over the next several years,
addressing a weakness in Argentina's institutional assessment.

RATIONALE

The ratings on Argentina reflect its weak fiscal and external
profiles, limited monetary flexibility despite greater fluctuation
of the peso, and growing debt burden, which is predominantly
denominated in foreign currency. They also reflect a moderate
economic risk profile and our assessment of weak institutional and
governance effectiveness.

Argentina's GDP growth prospects and inflation outlook worsened in
the second quarter of 2018 following capital outflows that
contributed to a depreciation of the currency. The central bank
responded to currency pressures by initially selling foreign
exchange reserves and then raising its policy interest rates to
try to staunch depreciation of the peso. In addition, the standby
agreement that the government entered into with the IMF in June
should bolster access to additional official funding, as well as
reduce uncertainty in and maintain access to financial markets.
The early implementation of the ambitious economic adjustment
strategy has been mixed. The government and IMF agreed to amend
the standby agreement to quicken some of the planned disbursements
and make other adjustments. The changes were driven by volatility
in the foreign exchange market, partly reflecting uncertainty
about the government's ability to obtain funding (beyond
multilateral organizations) in 2019.

Recent depreciation of the currency threatens to sustain high
inflation. The central bank's decision to raise its policy
interest rates again in response to such developments signals a
policy commitment to stability. However, persistently high
interest rates could have a negative impact on the economy and on
the government's own fiscal budget.

The ratings on Argentina are constrained by its reliance on
external funding to finance persistent and high fiscal deficits.
S&P estimates the change in net general government debt to average
above 12% of GDP in 2018-2021, reflecting fiscal deficits and the
hit to the debt level coming from exposure to foreign currency and
indexation to inflation.

Argentina has limited monetary flexibility despite its floating
exchange rate because of its small domestic capital markets and
high inflation rate. Political polarization and institutional
weaknesses constrain the effectiveness of democratic Argentina's
institutions of governance, creating greater uncertainty about the
long-term stability of key economic policies.

S&P said, "We view contingent liabilities as being limited,
including those posed by the banking system. We classify the
banking sector of Argentina in group '8' according to our Banking
Industry Country Risk Assessment (BICRA), with '1' being the
lowest risk category and '10' the highest." The main source of
credit growth recently has been mortgages. Such lending will
likely decelerate sharply in 2018. Nonbank financial institutions,
as well as nonfinancial public-sector enterprises, pose a limited
contingent liability to the sovereign.

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

  CreditWatch Action

                               To                 From
  Argentina
   Sovereign Credit Rating     B+/Watch Neg/B     B+/Stable/B
   Senior Unsecured            B+/Watch Neg       B+

  Ratings Affirmed

  Argentina
    Transfer & Convertibility Assessment       BB-


ARGENTINA: IMF Supports Policy Efforts, Managing Director Says
--------------------------------------------------------------
Christine Lagarde, the International Monetary Fund's Managing
Director, made the following statement regarding Argentina:

"President Macri and I had a productive conversation.  He
indicated his desire to work toward strengthening the policies
underpinning the Stand-By Arrangement with the IMF.

"In consideration of the more adverse international market
conditions, which had not been fully anticipated in the original
program with Argentina, the authorities will be working to revise
the government's economic plan with a focus on better insulating
Argentina from the recent shifts in global financial markets,
including through stronger monetary and fiscal policies and a
deepening of efforts to support the most vulnerable in society.

"I stressed my support for Argentina's policy efforts and our
readiness to assist the government in developing its revised
policy plans. I have instructed IMF staff to work with the
Argentine authorities to strengthen the Fund-supported arrangement
and to reexamine the phasing of the financial program. I have
agreed that we would aim to reach a rapid conclusion of these
discussions to present to our Executive Board for approval.

"I am confident that the strong commitment and determination of
the Argentine authorities will be critical in steering Argentina
through the current difficult circumstances and will ultimately
strengthen the economy for the benefit of all Argentines."

As reported in the Troubled Company Reporter-Latin America on
June 7, 2018, S&P Global Ratings affirmed on June 4, 2018, its
'B+' long-term sovereign credit ratings on the Republic of
Argentina. The outlook on the long-term ratings remains stable.
S&P also affirmed its short-term sovereign credit ratings on
Argentina at 'B', its 'raAA' national-scale ratings, and its
transfer and convertibility assessment of 'BB-'.

S&P said the stable outlook incorporates its expectation that
the Macri Administration will implement additional austerity-based
economic measures in the coming six months to contain and soon
reverse the deterioration in inflation dynamics, reduce the fiscal
deficit, and stabilize the economy. S&P expects the government's
decision to enter into an agreement with the International
Monetary Fund (IMF) will help sustain investor confidence and
maintain its access to capital market funding for its large fiscal
deficits. S&P expects that effective implementation of corrective
economic policies, including revised budgetary targets for this
year and next, will set the stage for better policy predictability
and continuity over the next several years.

Fitch Ratings affirmed on May 8, 2018, Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'B' and revised
the Outlook to Stable from Positive.

On December 4, 2017, Moody's Investors Service upgraded the
Government of Argentina's local and foreign currency issuer and
senior unsecured ratings to B2 from B3. The senior unsecured
shelves were upgraded to (P)B2 from (P)B3. The outlook on the
ratings is stable.  At the same time, Argentina's short-term
rating was affirmed at Not Prime (NP). The senior unsecured
ratings for unrestructured debt were affirmed at Ca and the
unrestructured senior unsecured shelf affirmed at (P)Ca.

As previously reported by the TCR-LA, Argentina defaulted on some
of its debt late July 30, 2014, after expiration of a 30- grace
period on a US$539 million interest payment.  Earlier that ,
talks with a court-appointed mediator ended without resolving a
standoff between the country and a group of hedge funds seeking
full payment on bonds that the country had defaulted on in 2001.
A U.S. judge had ruled that the interest payment couldn't be made
unless the hedge funds led by Elliott Management Corp., got the
US$1.5 billion they claimed. The country hasn't been able to
access international credit markets since its US$95 billion
default 13 years ago. On March 30, 2016, Argentina's Congress
passed a bill that will allow the government to repay holders of
debt that the South American country defaulted on in 2001,
including a group of litigating hedge funds that won judgments
in a New York court. The bill passed by a vote of 54-16.



===========
B R A Z I L
===========


BANCO SANTOS: Administrator's Artworks Sale Conditionally Approved
------------------------------------------------------------------
Judge Laurel M. Isicoff of the U.S. Bankruptcy Court for the
Southern District of Florida conditionally authorized the sales
procedures of ADJUD Administradores Judiciais LTDA. - EPP, the
Court-appointed Judicial Administrator for the bankruptcy estate
of Banco Santos, S.A. and its Affiliates, in connection with the
sale of the collection of over 93 pieces of artwork at auction.

A hearing on the Motion was held on Aug. 21, 2018.

A final hearing on the Motion is set for Sept. 20, 2018 at 3:30
p.m. (ET).  The objection deadline is Sept. 19, 2018 at 4:30 p.m.
(ET).

The Judicial Administrator proposes to sell a collection of over
93 pieces of artwork (paintings, photographs, maps, autographed
artwork, sculptures, scrolls, and letters) belonging to the Banco
Santos Estate.  The Property was obtained from the U.S. Government
pursuant to a stipulation approved by the U.S. District Court for
the Southern District of New York.

The Property will be sold through competitive bidding auctions by
Sotheby's and Heritage Auctions.  Sotheby's will sell 24 pieces of
the Property and charge no commission to the Estate, but will
charge a customary buyer's premium to prospective purchasers.
Heritage will sell 69 pieces of the Property and charge no
commission to the Estate, but will charge a customary buyer's
premium to prospective purchasers, which encompasses all fees,
costs, insurance, photographing, and cataloguing.  The Brokers
will accept bids from the public for the Property listed for
auction until the Brokers receive the highest and best bid
available.  If the agreed upon reserve price for each piece of
Property is met, then it will qualify as the final auction Sales
price for that piece of Property.

In the event that no objection is timely filed after publication
of the Sale Reports that would require consideration at a hearing,
then no further order needs to be entered by the Court with
respect to the Motion regarding approval of the Sales, and the
Court (i) approves the Sales free and clear of all liens, claims,
encumbrances and interests in all respects on a final basis; (ii)
approves the proposed form and manner in which notice will be
given to all parties in interest through publication in the
Official Gazette (Dirio Oficial); (iii) deems the prospective
successful bidders are good faith purchasers entitled to the
protections of 11 U.S.C. Section 363(m); and (iv) removes all
conditional language contained in this U.S. Approval Order related
to the Sales and grants the relief provided in the Order on a
final basis.

                       About Banco Santos

Vanio Cesar Pickler Aguiar, as foreign representative for Sao
Paulo, Brazil-based Banco Santos S.A., filed a Chapter 15 petition
(Bankr. S.D. Fla. Case No. 10-47543) in Miami, Florida.

The Chapter 15 petition estimates that the Debtor has assets of
US$500 million to US$1 billion and debts of more than
US$1 billion.  Gregory S. Grossman, Esq., in Miami, Florida,
represents the Trustee in the Chapter 15 case.  The Trustee is
also represented by:

          Astigarraga Davis, Esq.
          MULLINS & GROSSMAN P.A.
          701 Brickell Avenue, 16th Floor
          Miami, Florida 33131
          Tel: (305) 372-8282
          Fax: (305) 372-8202
          E-mail: ggrossman@astidavis.com
                  edavis@astidavis.com


RUMO SA: Granted Sao Paulo Railroad Extension
---------------------------------------------
Reuters reports that Brazil's national transport agency ANTT has
extended a concession for a railroad stretch in the state of Sao
Paulo operated by Rumo SA, the Brazilian transportation and
logistics company said in a filing, without offering further
details on the timeframe.

Rumo SA said the decision covering the so-called Malha Paulista,
whose concession originally expired in 2028, would be sent to the
transportation ministry and an audits court, according to Reuters.

As reported in the Troubled Company Reporter-Latin America on
Sept. 3, 2018, S&P Global Ratings affirmed its long-term 'BB-' and
short-term 'B' global scale issuer credit ratings on Rumo S.A. S&P
also affirmed its long-term 'brAA+' and short-term 'brA-1+'
national scale ratings on the company. The outlook on the long-
term issuer credit ratings is stable.



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


DIGICEL GROUP: Fitch Cuts LT IDR to C, Outlook Negative
-------------------------------------------------------
Fitch Ratings has downgraded the Long-Term Issuer Default Rating
(IDRs) of Digicel Group Limited (DGL) to 'C' from 'B-'/Negative
Outlook following the company's announcement that it has initiated
an exchange offer for DGL's 2020 and 2022 notes. This exchange
offer would result in the maturity dates for these notes being
pushed back by two years and additional structural subordination
of the existing 2022 notes. These actions, which are being made by
Digicel Group in an effort to give the company additional time to
execute its deleveraging strategy, constitute a Distressed Debt
Exchange (DDE), per Fitch's methodology. In conjunction with the
downgrade of DGL's Long-Term IDR, Fitch has downgraded DGL's 2020
and 2022 notes to 'C'/'RR5' from 'CCC+'/'RR5'.

In related rating actions, Fitch has downgraded Digicel Limited's
(DL) Long-Term IDR to 'CCC' from 'B-' and notes due in 2021 and
2023 to 'CCC'/'RR4' from 'B-'/'RR4'. Fitch has also downgraded
Digicel International Finance Limited's (DIFL) Long-Term IDR to
'CCC+' from 'B-' and secured loan facility to 'CCC+'/'RR4' from
'B-'/'RR4'. These ratings have also been placed on Rating Watch
Negative.

Upon completion of the exchange offer, Fitch would downgrade DGL's
IDR to RD, signifying a restricted default. Once sufficient
information is available, DGL and its legacy debt, if any, would
be re-rated to reflect the issuers' post-exchange capital
structure and risk profile. The IDRs of the new issuing entities,
Digicel Group One Limited (DGL1) and Digicel Group Two Limited
(DGL2), would likely be in the low-to-mid 'CCC' category; these
two entities and their bonds would likely be rated differently to
reflect structural subordination and the weak recovery prospects
for the DGL2 notes. The Rating Watch Negative for DIFL and DL
ratings will likely be removed if the debt exchange is completed
as currently structured and the ratings of these two entities may
be upgraded by one notch.

KEY RATING DRIVERS

Exchange Offer Qualifies as DDE: The terms of the exchange offer
represent a material reduction for DGL holders and this action by
the Digicel Group was necessary in Fitch's view to prevent a
possible future default on the 2020 notes. The existing $2.0
billion of 8.25% notes due 2020 will be exchanged for 8.25% notes
due 2022. These notes will be issued out of a new intermediate
holding company, Digicel Group One Limited (DGL1). The existing
$1.0 billion of 7.125% notes due 2020 will be exchanged for 8.25%
notes due 2024.These will be issued out of another new
intermediate holding company, Digicel Group Two Limited (DGL2). In
both cases, the exchange consideration will be to exchange $1000
of the principal amounts of the existing notes for $950 in the new
notes, along with an early tender premium consisting of $50 of
principal of the new notes.

New Group Structure and Subordination: DIFL has first claim on the
group's Caribbean assets, which comprise the bulk of the group's
revenues and cash flow from operations and has a $1.4 billion
secured loan facility. DL is an intermediate holding company that
is dependent on DIFL for upstreaming cash. DGL1 will be
structurally senior to DGL2, and will have first claim on the
group's Pacific operating assets and investment in Panama. Through
the restructuring, DGL1 would replace DGL as the direct parent
company of DL. As a result, DGL and any of its non-tendering
creditors would be structurally subordinated to both DGL1 and DGL2
creditors.

Lack of Strong Legal Ties: Fitch's Parent-Subsidiary Linkage (PSL)
specifies that legal ties are generally the most important form of
tangible support. In the case of Digicel, Fitch believes that
these legal ties are weak due to the following: the absence of
guarantees of DGL's debt by DL and DIFL and the lack of cross
default clauses in the debt obligations of DIFL and DL with those
of DGL. As Digicel's financial profile has deteriorated, Fitch
believes that the operational ties between the issuers has become
less important relative to the lack of legal ties. As such, the
issuers' IDRs are no longer equalized, and reflect the different
probabilities of default by the three entities.

Aggressive Governance: Digicel has been pursuing a number of
inorganic and organic initiatives to improve its financial
profile. Management's exchange proposal reflects the company's
willingness to restructure its financial debt rather than seeking
additional equity or expediting asset sales. Fitch believes that
such moves undermine the company's position with creditors and
will result in higher costs for refinancing at the level of DL and
DIFL, and reduced access to the capital market.

Offer Acceptance Uncertain: The prospect of a significant majority
of creditors accepting these terms is unclear. In the event that
creditor negotiations are unsuccessful from Digicel's point of
view, additional incentives may be necessary to gain creditor
approval. These incentives may place additional burdens on DIFL
and DL.

DERIVATION SUMMARY

The downgrades reflect Fitch's DDE criteria, as well as the weak
legal linkages between DGL and DL and DIFL under the PSL
framework. Furthermore, the move reflects management and
shareholder aggressiveness in seeking to restructure debt, rather
than expedite other inorganic deleveraging measures. Following the
completion of the exchange, Fitch will re-rate the IDRs and
instrument ratings as appropriate.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within its Rating Case for the Issuer

  - Mobile revenues growth and business solutions growth in low to
mid-single digits; cable and broadband growth in the mid-single
digits;

  - Continued appreciation of the U.S. dollar against a basket of
currencies;

  - Capital intensity 14% to 15% of revenues;

  - Benefits from restructuring program to increase EBITDA margins
by 1% to 2% in near term;

  - No dividend payments to controlling shareholder.

RATING SENSITIVITIES

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

  - Fitch will re-rate the companies IDRs and instruments
following the completion of the exchange; the ratings will reflect
the reduced creditworthiness of the group and the notching will
reflect the differing recovery prospects under the new group
structure.

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

  - Upon conclusion of the DDE, the IDR of DGL will be downgraded
to RD;

  - Continued erosion in revenue growth rates, or unfavorable FX
movements that further hamper revenue growth and cash flow
generation could lead to negative rating actions on DIFL and DL;

  - The ratings of DIFL and DL could be lowered if they become
entwined in a larger Digicel Group debt restructuring.

LIQUIDITY

Current Structure: Liquidity is viewed to be weak. As of June 30,
2018, Digicel had USD158 million of cash and marketable
securities. This compares with USD148 million of short-term debt.

FULL LIST OF RATING ACTIONS

Fitch downgrades the following:

Digicel Group Limited

  - Foreign Currency Long-Term Issuer Default Rating to 'C' from
'B-'/Negative Outlook;

  - 2020 and 2022 Notes to 'C'/'RR5' from 'CCC+'/'RR5'.
Digicel Limited

  - Foreign Currency Long-Term Issuer Default Rating to 'CCC' from
'B-'/Negative Outlook;

  - 2021 and 2023 Notes to 'CCC'/RR4' from 'B-'/'RR4'.

Digicel International Finance Limited

  - Foreign Currency Long-Term Issuer Default Rating to 'CCC+'
from 'B-'/Negative Outlook;

  - Term Loan and Credit Facility to 'CCC+'/'RR4' from 'B-'/'RR4'.


DOMINICAN REPUBLIC: 'Hobbled' Pension System Must Cut Distortions
-----------------------------------------------------------------
Dominican Today reports that economists and union leaders agree
that Dominican Republic's current pension formula needs changes to
reduce the distortions they say hobble the system.

"The time has come to understand that the system should be subject
to reform," said CNUS Union leader Pepe Abreu, according to
Dominican Today.  He said the contributors need assurance that
they'll have their pension in the last stage of their lives, the
report relays.

He said the unions last May submitted a bill to reform the Pension
Law that involves a pay-as-you-go system that guarantees an 80%
rate of return (the Dominican average is around 22%) and an
individual contribution formula, but which allows that if a worker
wants to contribute more to their pension fund, they can do so,
the report notes.

But Pensions superintendent, Ramon E. Contreras noted that the
incorporation into the Dominican labor market occurs from the age
of 16, so that an average worker would have around 44 years to
contribute to the system, although it will depend on situations
that may occur during their working life, the report discloses.

"The longer the contribution period, the higher the accumulated
balance and therefore the higher the pension," Diario Libre quoted
Mr. Contreras as saying, notes the report.

He said that anyone affiliated with the pension system that has
contributed 360 quotas and reached the age of 60 required by law,
is guaranteed at least the minimum pension for life with its
accumulated funds and the complement from the social solidarity
fund, and if they require it, the report discloses.

"Old-age pensions will be paid from the balance that has
accumulated in these accounts during the period of activity of the
workers, so that in no way the payment of the benefits implies a
fiscal sacrifice for the State," the official said, the report
notes.

"Old-age pensions will be paid from the balance that has
accumulated in these accounts during the period of activity of
incumbent workers, so in no way the payment of benefits implies a
fiscal sacrifice for the State," he added, the report discloses.

                            Think tank

Ernesto Selman, economist at the think tank CREES, agrees that the
risk of a fiscal crisis would only occur if the Dominican
government assumed part of the cost of pensions, even if the
workers are registered with the Pension Fund Administrators (AFP),
the report says.

He stressed that solving the problem of pensions goes beyond
increasing the contribution to the system or other changes, the
report notes.

"The crisis has to do with the high labor informality, low wages,
unemployment and the little development of the capital market that
has led to 75% of the savings of the workers being invested in
State papers," he said, the report adds.

As reported in the Troubled Company Reporter-Latin America on
July 19, 2018, Fitch Ratings assigned a 'BB-' rating to
Dominican Republic's USD1.3 billion bonds, maturing July 2028. The
notes have a coupon of 6%.  Proceeds from the issuance will be
used for general purposes of the government, including the partial
financing of the 2018 budget.


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


DIGICEL GROUP: Discloses Exchange Offers
----------------------------------------
The Digicel Group has moved to ease its debt burden by asking
holders of US$ 3 billion of its bonds to switch to longer-term
notes.

Digicel is offering to exchange US$2 billion of bonds that are due
to be repaid in September 2020 for newly-issued bonds that mature
in 2022.

In a statement, the company said the new bonds would carry the
same coupon or interest rate of 8.25 per cent.

In addition, the telecommunication group, which operates across
the Caribbean and South Pacific regions, is offering to exchange
US$1 billion of bonds that are set to mature in 2022 for higher-
cost securities that would not stand to be redeemed until 2024.

Bondholders that take up the offer by September 14 will be offered
100 per cent of what they are owed, including a 5 per cent early
tender premium.

Those who subscribe before the final cut-off point on September 28
stand to receive 95 per cent.

The 2020 bonds, which had been trading as low as 66.7 cents on the
dollar during the week, soared as much as 8.7 cents on Aug. 31 as
investors gave an initial welcome to the plan, which may ease
near-term refinancing risks at Digicel as it seeks to rebuild its
earnings and lower the burden of  its US$6.7 billion  of
borrowings.

As reported in the Troubled Company Reporter-Latin America on
July 5, 2018, Moody's Investors Service has changed to negative
from stable the outlook on the ratings of Digicel Group Limited
("Digicel", "DGL" or the "company") and Digicel Limited ("DL") and
assigned a negative outlook to Digicel International Finance
Limited ("DIFL"). At the same time, Moody's has affirmed DGL's B2
corporate family rating (CFR) and B2-PD probability of default
rating (PDR), as well as the B1 rating on the unsecured notes of
DL and the Ba2 rating on the secured bank credit facilities of
DIFL.


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


RASSINI AUTOMOTRIZ: Fitch Hikes IDRS to BB, Outlook Stable
----------------------------------------------------------
Fitch Ratings upgraded Rassini Automotriz, S.A. de C.V's (RA)
foreign- and local-currency Issuer Default Ratings (IDRs) to 'BB'
from 'BB-'.

The Rating Outlook is Stable.

The upgrade reflects Fitch's expectation of further strengthening
in Rassini's credit profile over the next 18 months as the company
continues to execute repayment of existing bank debt, which
combined with already awarded leaf spring contracts for the new
models of all major pickup platforms, should allow Rassini to
generate solid cash flow and gain significant leverage headroom.
Awarded contracts lock Rassini's position as the leading North
America leaf spring supplier over the next 7-8 years, which,
coupled with increased product diversification into brakes and
Fitch's expectations of cash flow from operations of around USD120
million, should provide the company with sufficient flexibility to
pursue its growth strategy while maintaining gross leverage
significantly below 2x.

The ratings reflect RA's business position as a Tier-1 supplier of
suspension and brake components, its geographic diversification,
efficient operations, low cost structure and improved financial
profile. The company's ratings are limited by the cyclicality of
the automotive industry as well as RA's regional and customer
concentration in North America, and small scale.

KEY RATING DRIVERS

Strong Business Position: RA, a subsidiary of Rassini, S.A.B. de
C.V. (Rassini), manufactures suspension and brake components for
light and heavy vehicles, with leading positions in North America
and Brazil. The company's main product line, leaf springs, which
accounted for 57% of total sales as of the latest twelve months
(LTM) ended June 2018, has historically had a dominant market
position in North America.

Product Diversification Positive: Rassini's was awarded new brakes
contracts over the last several years that have allowed the brakes
division to post fast revenue growth, reducing Rassini's
dependence on leaf springs. This division has been an increasing
contributor to Rassini's EBITDA as the company has increased brake
rotor production and machining capabilities to meet demand.
Reported sales volumes have grown 4% year to date, and grew 5% in
2017 and 9% in 2016.

Customer and Regional Concentration: Rassini is considered an
essential supplier to several original equipment manufacturers
(OEMs), including General Motors Co., Fiat Chrysler Automobiles
N.V. and Ford Motor Co. Detroit's Big Three OEMs represented 76%
of Rassini's total revenues during 2017; North America accounted
for 90% and 95% of Rassini's total revenues and EBITDA,
respectively. Regional and customer concentration have increased
in recent years due to organic growth in North America.

Declining Leverage: Rassini's total adjusted debt/EBITDA for the
LTM ended June 30, 2018 was 0.8x, which favorably compares with
the 1.1x registered as of second-quarter 2017. The company paid
down USD46 million of debt during the last 18 months and Fitch
projects the company should be in a solid position to meet
projected debt amortizations through 2019 for approximately USD50
million, which would result in a gross leverage of close to 0.5x.
Materialization of these expectations would enhance Rassini's
flexibility to fund investments beyond 2019 while maintaining
leverage significantly below 2x during peak investment periods.

Sound FFO Generation Expected: The company is expected to generate
FFO of about USD110 million in 2018, which compares with USD120
million during 2017. Modest declines in FFO are mainly the result
of an extraordinary contract in 2017 as well as high cash taxes in
2018. Rassini's FFO is not expected to strengthen materially in
the near term due to slowing North American vehicle production
growth.

DERIVATION SUMMARY

Rassini's EBITDA is about a third of American Axle's (BB-/Stable)
and similar to smaller companies such as Tupy (BB/Stable).
Rassini's concentration to North America at around 90% of revenue
compares unfavourably with peers. Although Tupy and American Axle
have concentrations to the North American Market above 60% and
some exposure to South America, both have diversified their
revenue sources to Europe or Asia. Rassini's exposure to Detroit
Three OEMs is high at around 76% and compares unfavourably with
Tupy's more diversified customer portfolio and is somewhat similar
to American Axel's heavy concentration in one single OEM.
Positively, Rassini's expected net leverage is strong for the
rating category at about 1x lower than Tupy's and more than 2x
lower than American Axle's. The company's liquidity position
relative to upcoming debt maturities is primarily supported by
expectations of continued cash flow generation and low leverage.
Larger peers such as American Axle or Nemak (BB+/Positive) enjoy
greater financial market and banking access, and typically hold
committed credit facilities or large cash balances relative to
short-term obligations.

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case include:

  -- Consolidated volumes remain relatively flat over the
intermediate term;

  -- Rassini's EBITDA above USD160 million over the intermediate
term;

  -- Total debt/EBITDA significantly below 2x over the
intermediate term;

  -- Rassini remains FCF positive over the intermediate term.

RATING SENSITIVITIES

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

  -- No upgrades are likely to occur over the next several years
given the company's size, product diversification and customer
concentration.

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

  -- A combination of lower volumes and profitability as a result
of material deterioration in North American light vehicle demand;

  -- Sustained gross leverage above 2x;

  -- Weak operating cash flow and deteriorating liquidity.

LIQUIDITY

Rassini's sustainable liquidity is adequate and primarily
supported by solid cash flow generation and low debt levels, which
should allow the company to continue to manage upcoming debt
maturities. The company's financial debt was USD104 million as of
second-quarter 2018. The majority of this debt matures over the
next two years and compares with estimated readily available cash
of USD43 million and expectations of cash flow from operations of
about USD120 million over the intermediate term.

The company uses receivable factoring facilities on average in an
amount of USD40 million. Fitch treats these facilities as debt for
its ratio calculations as immediate replacement funding is
required if the receivables financing shuts down or eligible
receivables decline in quality and the facility ceases to fund
ongoing receivables.

FULL LIST OF RATING ACTIONS

Fitch has upgraded the following ratings:

  -- Foreign-currency, long-term Issuer Default Rating (IDR) to
'BB' from 'BB-';

  -- Local-currency, long-term IDR to 'BB' from 'BB-'.

The Rating Outlook is Stable.



======================
P U E R T O    R I C O
======================


COOPERATIVA DE SEGUROS: A.M. Best Lowers FS Rating to C (Weak)
--------------------------------------------------------------
A.M. Best has removed from under review with negative implications
and downgraded the Financial Strength Rating to C (Weak) from C+
(Marginal) and the Long-Term Issuer Credit Rating (Long-Term ICR)
to "ccc+" from "b-" of Cooperativa de Seguros de Vida de Puerto
Rico (COSVI) (San Juan, Puerto Rico). The outlook assigned to the
FSR is stable, and the outlook assigned to the Long-Term ICR is
negative.

The ratings reflect COSVI's balance sheet strength, which A.M.
Best categorizes as very weak, as well as its adequate operating
performance, limited business profile and weak enterprise risk
management.

The negative outlook assigned to the Long-Term ICR reflects A.M.
Best's concerns that COSVI's risk-adjusted capitalization could
further weaken or operating performance could deteriorate.

The balance sheet strength assessment is derived from COSVI's
risk-adjusted capitalization, as measured by Best's Capital
Adequacy Ratio, which also is assessed at very weak. Puerto Rico
experienced two devastating hurricanes in the fourth quarter of
2017, which compromised insurance operations on the island. COSVI,
along with other Puerto Rico insurance companies, were permitted
to delay the filing of its 2017 statutory financial statements
until June 2018. However, COSVI required more time to complete its
filing.

Furthermore, COSVI at year-end 2017 would have been required to
have an additional $34 million of capital, based upon annual cash-
flow testing and the depressed value of Puerto Rico bonds, which
posted historic low prices after the 2017 hurricanes. In absence
of a capital contribution, an additional reserve should have been
booked at that time for the required $34 million. As of June 2018,
the bonds had recovered a large part of their losses. COSVI also
realized a portion of this recovery by selling $51 million of its
Puerto Rico bond holdings. The recovery in the market value of the
bonds, and the subsequent sale of a portion of the holdings, meant
that the cash-flow shortfall that occurred at year-end 2017 no
longer existed. COSVI has submitted a request to the Office of the
Commissioner of Insurance of Puerto Rico to allow the company to
recognize the increase in the value of the Puerto Rico bonds for
cash-flow testing. The request was approved.

A.M. Best believes that although COSVI has stabilized its balance
sheet, the company remains exposed to substantial investment
risks. Business development in 2018 remains stagnant due to the
prolonged economic depression in Puerto Rico over the last 12
years and the company's limited access to external sources of
capital. However, business renewal persistency has been more than
adequate, and investment income has provided a sufficient hedge
against underwriting fluctuations, even though the company's
business mix, whose expenses are mostly front-loaded, have
resulted in unfavorable underwriting performance. Owing to the
company's operating structure and its connection to cooperatives
and credit unions, the company's operations are well-suited for
stable development.


DISTRIBUIDORA LEQUAR: Case Summary & 20 Top Unsecured Creditors
---------------------------------------------------------------
Debtor: Distribuidora Lequar, Inc.
        P.O. Box 270126
        San Juan, PR 00927

Business Description: Founded in 1963, Distribuidora Lequar, Inc.
                      is engaged in the business of selling
                      men's, women's and children's footwear.
                      Distribuidora Lequar Inc. is located in Rio
                      Piedras, Puerto Rico.

Chapter 11 Petition Date: September 1, 2018

Court: United States Bankruptcy Court
       District of Puerto Rico (Old San Juan)

Case No.: 18-05107

Judge: Hon. Enrique S. Lamoutte Inclan

Debtor's Counsel: Charles Alfred Cuprill Hernandez, Esq.
                  CHARLES A CUPRILL, PSC LAW OFFICE
                  356 Calle Fortaleza, Second Floor
                  San Juan, PR 00901
                  Tel: 787 977-0515
                  Email: cacuprill@cuprill.com
                         ccuprill@cuprill.com

Total Assets: $4,095,449

Total Liabilities: $8,011,822

The petition was signed by Albert Bejar Bitton, vice-president.

A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at:

          http://bankrupt.com/misc/prb18-05107.pdf


================================
T R I N I D A D  &  T O B A G O
================================


PETROLEUM CO: Bourse Examines Firm's Recent Developments
--------------------------------------------------------
Trinidad Express reports that this week, the Bourse examined the
recent developments of Trinidad and Tobago's State-owned oil
refinery -- The Petroleum Company of Trinidad and Tobago
(Petrotrin).

On August 28, 2018, the company's board announced its intentions
to terminate the refinery and its marketing operations as well as
reduce the company's labor force, according to Trinidad Express.

Investors have been contemplating the effect of this decision on
Petrotrin's outstanding US-dollar bond obligations, the report
relays.  As such, a closer look at the company's credit profile,
its pricing and yield for its outstanding bonds will be made, the
report notes.

As reported in the Troubled Company Reporter-Latin America on
May 3, 2018, S&P Global Ratings revised its outlook on Petroleum
Co. of Trinidad & Tobago Ltd (Petrotrin) to negative from stable.
S&P said, "We also affirmed our 'BB' long-term corporate credit
and senior unsecured debt ratings on the company. Additionally,
we're keeping its SACP unchanged at 'b-'."


TRINIDAD & TOBAGO: ECLAC Sees 1.5% Growth in 2018
-------------------------------------------------
The Economic Commission for Latin America and the Caribbean
(ECLAC) is predicting that the T&T economy will grow by some 1.5
per cent in 2018, which is below estimates for the performance of
the domestic economy provided by Finance Minister Colm Imbert.

The report notes that in delivering the mid-year budget review on
May 10, Imbert said: "After a long and discouraging period of
economic decline, we are now witnessing a welcome upturn.  Early
estimates are indicative of a growth forecast of 2.0 per cent in
2018 and 2.2 per cent in 2019, rising to 2.5 per cent in 2020.
And contrary to the negative commentary of uniformed
spokespersons, who speak without having any facts, the turnaround
is being driven by economic expansion in both the energy and non-
energy sectors."



                            ***********


Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades.  Prices
for actual trades are probably different.  Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind.  It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.

Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

Submissions about insolvency-related conferences are encouraged.
Send announcements to conferences@bankrupt.com


                            ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

Copyright 2018.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000.
.


                   * * * End of Transmission * * *