/raid1/www/Hosts/bankrupt/TCRLA_Public/180913.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

               Thursday, September 13, 2018, Vol. 19, No. 182


                            Headlines



A R G E N T I N A

BANCO CETELEM: Moodys's Cuts CDR to B3; Alters Outlook to Negative


B O L I V I A

BOLIVIA: Amends Tax Bill in Response to Complaints From Business


B R A Z I L

INTERCEMENT PARTICIPACOES: Fitch Cuts LT IDRs to B, Outlook Stable


C O S T A   R I C A

COSTA RICA: Unions Say General Strike Making an Impact


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Taps RD$700MM for Dairy, Livestock Sector
* DOMINICAN REPUBLIC: Envoy in China Talks Business, Investments


M E X I C O

BAJA CALIFORNIA: Moody's Cuts Issuer Rating on B1, Outlook Neg.


P A R A G U A Y

AGENCIA FINANCIERA: Moody's Gives Ba1 IR, Outlook Stable


P U E R T O    R I C O

J & M SALES: Taps Imperial Capital as Investment Banker
STONEMOR PARTNERS: Delays Second Quarter Financial Report


T R I N I D A D  &  T O B A G O

TRINIDAD & TOBAGO: Rowley Wanted Guyana Land for Debt


V E N E Z U E L A

VENEZUELA: Supporters March in Support of Maduro


                            - - - - -



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


BANCO CETELEM: Moodys's Cuts CDR to B3; Alters Outlook to Negative
------------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo (MLA) has
downgraded Banco Cetelem Argentina S.A.'s (Cetelem) global local
currency deposit rating (CDR) to B3 from Ba3, national scale local
currency deposit rating to Baa3.ar from Aaa.ar, and national scale
foreign currency deposit rating to Baa3.ar from Baa1.ar. In
addition, Moody's downgraded the standalone credit assessment
(BCA) to ca from caa1, the adjusted BCA to b3 from ba3, and the
long term Counterparty Risk Assessment (CRA) to B2(cr) from
Ba3(cr). The B3 global foreign currency deposit rating was
affirmed. The bank's Not Prime short term deposit ratings and Not
Prime(cr) short term CRA were also affirmed. The outlook on the
ratings was changed to negative from stable.

The following ratings were downgraded:

Baseline credit assessment: ca from caa1

Adjusted baseline credit assessment: b3 from ba3

Long term local currency deposit rating: B3 from Ba3, with
negative outlook

Long-term national scale local currency deposit rating: Baa3.ar
from Aaa.ar, with negative outlook

Long-term national scale foreign currency deposit rating: Baa3.ar
from Baa1.ar, with negative outlook

Long term counterparty risk assessment: B2(cr) from Ba3(cr)

The following ratings were affirmed:

Long term foreign currency deposit rating: B3, with negative
outlook

Short term foreign currency deposit rating: Not Prime

Short term local currency deposit rating: Not Prime

Short term counterparty risk assessment: Not Prime(cr)

Outlook:

Outlook, Changed To Negative From Stable


RATINGS RATIONALE

The downgrade of Cetelem's ratings reflects the very large
operating losses that Cetelem recorded in the first six months of
2018 along with the sharp rise in its delinquencies to current
very high levels. In addition, the bank's ratings reflect its weak
funding structure, with a high reliance on markets funds which are
more vulnerable to external shocks, and very low levels of
liquidity. In light of the difficult economic environment in
Argentina Moody's believes there is a high probability of
additional delinquencies and further material losses, which will
require further extraordinary support from the bank's parent, BNP
Paribas (Aa3, stable), to limit capital deterioration. Over the
last twelve months, Cetelem already received two material capital
injections from its parent bank, to offset the impact of operating
losses. Moody's believes these capital injections prevented the
bank's capital ratios to fall below the regulatory minima. This
constitute a BCA event which Moody's define as the requirement by
the bank for support from an affiliate or government in order to
avoid default.

Following a rapid expansion of the bank's loan book in 2017 and 1Q
2018, non-performing loans (NPLs) jumped to 29.9% of gross loans
as of March 2018 from 13.9% in March 2017. Were it not for a
significant sale of bad loans in the second quarter, Moody's
estimates the NPL ratio would have risen to an even higher 36% by
the end of June. Moreover, even if the bank continues to clean up
its balance sheet, delinquencies are likely to remain high.
Cetelem has a largely unsecured lending book, composed
predominantly of personal loans, and to a lesser extent credit
cards, to low and medium income individuals. This segment of the
population will be severely affected by the current rising
inflation, which will erode borrowers' service debt capacity.
Moody's also expects the rise in interest rates to lead to a
contraction of the economy in the second half of the year, and a
rise in unemployment.

In the first two quarters of 2018, the bank registered a net loss
equal to 27% of tangible assets on an annualized basis. Cetelem's
profitability has been severely hurt by high provisions and
operating expenses and rising funding costs. While operating
expenses were inflated during the first half of the year due to
severance costs related to recent layoffs, they will nevertheless
remain elevated. In addition to significant losses from the
portfolio sale, credit costs rose to 24.7% of gross loans in the
first six months of 2018 on an annualized basis, from 11.8% in
2017. Moreover, with loan loss reserves equal to just 55.7% of
NPLs as of June 30, Moody's expects that credit costs are likely
to remain very high in the coming quarters.

Although tangible common equity equalled a strong 17.8% of
adjusted risk-weighted assets as of June 30, this was down sharply
from a level of 30.6% just three months earlier. Moreover, were it
not for capital injections of ARS 207 million ($10.3 million) and
ARS 125 million ($7 million) that the bank received in late March
2018 and August 2017, respectively, Moody's estimates its capital
ratio would have equalled approximately -15% as of end June. Given
continued expected losses, Moody's believes the bank's capital
ratio will continue to face downward pressure, even if loan growth
remains flat (which imply a sharp contraction in real terms).
Cetelem's funding strategy depends heavily on the market as its
funding sources consist entirely of institutional deposits and
interbank loans, which exposes it to refinancing and interest rate
risk, particularly under the current scenario of rising rates in
Argentina. Market funds to tangible assets reached 54.6% as of
March 2018 and will likely rise further as the bank's capital
position erodes. All of Cetelem's currently outstanding financial
obligations - except deposits - are fully guaranteed by BNP
Paribas. At the same time, the bank's liquidity is very weak, with
liquid assets equal to just 2.4% of tangible banking assets as of
June 30. While the bank had drawn just 32% of the total approved
amount of its current lines of credit as of that date, none of
these lines are committed.

Moody's continues to assess a very high probability of support
from BNP Paribas in line with the recent capital injections it has
made, as well as its explicit guarantee of Cetelem's outstanding
lines of credit, which lifts the bank's long-term GLC deposit
ratings by four notches to B3 from the ca BCA. While the guarantee
is unconditional, it only covers specifically listed lines of
credit and other obligations issued under Cetelem's Global Program
in an amount up to AR 300 million. It explicitly excludes the
bank's deposits. Moreover, it currently expires in May 2019,
though it has been renewed annually since 2000. Consequently,
Moody's does not apply credit substitution.

Cetelem's negative outlook reflects Moody's concern that
notwithstanding the recent capital injections, shareholder support
could diminish given the current challenging environment in
Argentina and significant further expected losses, unless
Cetelem's standalone credit profile improves.

WHAT COULD CHANGE THE RATING UP/DOWN

An indication of reduced willingness to support the bank from
Cetelem's parent will put further downward pressure on Cetelem's
ratings. The bank's ratings could also move further down if it
continues generating losses and its capital base erodes further,
leading to a rise in the expected loss of the bank's obligations.
A further deterioration of the bank's asset risk profile or
reduced access to funding could also put downward pressure on the
ratings. A strong recovery in profitability sufficient to
stabilize capital, coupled with a reduction in asset risk, would
put upward pressure on the ratings.

The principal methodology used in these ratings was Banks
published in August 2018.



=============
B O L I V I A
=============


BOLIVIA: Amends Tax Bill in Response to Complaints From Business
----------------------------------------------------------------
Alianza News reports that Bolivian President Evo Morales disclosed
the elimination of the article of a proposed tax law that would
increase the monitoring of bank accounts in response to a
complaint by the Private Business Owners Confederation (CEPB).

Last month, the government introduced a bill providing for a tax
amnesty to recoup some of the $4.32 billion in unpaid taxes owed
to the treasury, according to Alianza News.

The report notes that the bill included an article that would have
given the tax and customs service's access to account information
that until now has only been available to authorities based on
warrants.

Business leaders considered the provision such a violation of
private businesses' right to confidentiality that it would turn
away investors, the report relays.

The report adds that Mr. Morales told reporters that he withdrew
the article when he realized that business owners "are completely
right to protect their sector, but also to think about Bolivia."

Mr. Morales also praised the fact that "after such a long time"
the dialogue with private business owners has been renewed
following a series of disagreements, the report notes.

The president was taking part in a meeting of members of his
administration with the CEPB in the central Bolivian city of
Cochabamba, the report relays.

For his part, the head of the business group, Ronald Nostas,
thanked the president for the chance to restart a dialogue that
provides the necessary balance between the country's public and
private sectors, because "the only way to make progress is by
working together," the report discloses.

"The private sector without the support of the state cannot
progress in the same way," the report quoted Mr. Nostas as saying.

The amnesty bill forgives up to 95 percent of tax debts and fines
in order to encourage taxpayers to voluntarily regularize their
debts with the Treasury by Jan. 31, 2019, the report relays.

The report discloses that Mr. Morales' leftist MAS party has the
majority in Congress.

As reported in the Troubled Company Reporter-Latin America on
July 5, 2018, Fitch Ratings has affirmed Bolivia's Long-Term
Foreign Currency Issuer Default Rating (IDR) at 'BB-' with a
Stable Outlook.


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


INTERCEMENT PARTICIPACOES: Fitch Cuts LT IDRs to B, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has downgraded the Long-Term Foreign and Local
Currency Issuer Default Ratings (IDR) of InterCement Participacoes
S.A. (InterCement) to 'B' from 'BB-' and the Long-Term National
Rating to 'BBB-(bra)' from 'A(bra)'. Fitch has also downgraded
Cimpor's unsecured notes due 2024 'B' from 'BB-' and assigned a
Recovery Rating (RR) of 'RR4'. The 'RR4' on the notes reflects
average recovery prospects in the event of default. The Rating
Outlook is Stable.

The downgrades reflect heightened credit risk due to the sharp
economic downturn in Argentina that is projected to lead to an
economic recession and weak cement demand. Argentina and Paraguay
have been the backbone of the company's cash flow since the
economic downturn in Brazil, representing 59% of consolidated
adjusted EBTIDA in 2017, 43% in 2016 and 39% in 2015. Brazil
accounted for 51% and 60% of EBITDA, respectively, during 2014 and
2013. Considering a contraction of around EUR65 million in the
EBITDA coming from Argentina (around 1/3 of EBITDA in 2017) during
2019 and no material asset sales, InterCement's net leverage is
expected to increase to around 5.5x.

FX weakness in key markets is also a concern with 69% of the
company's debt denominated in US dollars or Euros. The Argentine
peso has depreciated precipitously since YE 2017, losing more than
half its value versus the US dollar. Currency depreciation and
rising inflation expectations have led to large interest rate
hikes to 60% from 45% and the expectation that inflation could
reach 40%. The Brazilian real has also weakened during the same
time period, depreciating by 20%.

Further factored into the rating actions is increasing risk
aversion to emerging markets. InterCement had planned to refinance
its debt in the cross border market during 2018 and is looking for
alternatives to raise more than EUR500 million by selling minority
stakes in its Luso-African subsidiaries. Positively, Fitch views
InterCement refinancing risk at this time as manageable. As of
March 31, 2018, InterCement's cash and marketable securities was
EUR635 million and EUR501 million of short-term debt (EUR38
million of interest payables). Cash and short-term debt of its
Argentine subsidiary represented EUR45 million and EUR76 million
of this figure.

KEY RATING DRIVERS

Poor EBITDA Generation: InterCement's weak performance continues
to be driven by deterioration in its key markets and local
currency depreciation. During the LTM ended March 31, 2018,
InterCement generated EUR339 million of adjusted EBITDA, per
Fitch's calculations. This compares with EUR358 million in 2017
and an average of EUR616 million during 2013 through 2015. Around
85% of its EBITDA is now originated in countries rated 'BB-' or
lower.

Brazilian Recovery Remains Uncertain: Intercement's EBITDA
generation has collapsed in Brazil, falling to EUR4 million,
excluding non-recurring items EBITDA was around EUR60 million,
during 2017 from EUR324 million in 2014. During these years,
cement consumption fell to 54 million tons from 72 million tons.
The outlook for cement demand remains weak throughout 2018 and
2019 and the timing and strength of the recovery in 2020 and
beyond remains uncertain due to vastly different policies being
proposed by the leading presidential candidates. Due to cost-
saving initiatives implemented by InterCement over the last two
years, EBITDA generation in Brazil should slightly improve to
around EUR70 million in 2018, per Fitch's forecasts.

Argentina is Key Asset: InterCement owns 51% of its Argentine
subsidiary, Loma Negra, following the IPO of that company in 2017.
Loma Negra and its Paraguay subsidiary accounted for EUR211
million of InterCement's EUR358 million of EBITDA during 2017.
Loma Negra had ARS2.1 billion of debt denominated in U.S. dollars
(USD72 million -38% of USD 187 million of total debt) as of June
30, 2018 and a cash position of ARS1.7 billion (USD56 million).
Despite having a market share of close to 50%, Loma Negra is
expected to have challenges passing through price increases to
customers to offset declining volumes and shield profitability
from a cost structure that is 45% denominated in USD. Around 92%
of Loma Negra's sales are generated in Argentina with the rest
being generated in Paraguay.

Potential Asset Sales: InterCement's net leverage is expected to
increase to around 5.5x-6.0x, per the agency's methodology, during
2018-2019. This considers a contraction of around EUR65 million in
EBITDA from Argentina leading to a projected consolidated EBITDA
of EUR325 million in 2019. The company plans to raise more than
EUR500 million of minority stake disposal at its Luso-African
units. If successful, this would lead to a net leverage ratio
closer to 4.0x-4.5x. Fitch's leverage ratio calculation differs
from the net debt/EBITDA financial covenant that InterCement is
subject to on its financial debt. The company is tested annually
on a 4.5x net debt/EBITDA ratio. In 2017, Intercement was granted
permission from its creditors for this ratio to be measured below
5x.

DERIVATION SUMMARY

InterCement's 'B' rating reflects leverage and cash flow
challenges following the severe economic recession in Brazil, the
company's main market in terms of volume, as well as the projected
downturn in Argentina. Weakness in the Brazilian real and
Argentine peso is also factored into the ratings. The company has
a strong business position in these markets. Business scale is an
important driver for cement industries given its capital-intensive
operations and high fixed costs. Despite its large scale,
InterCement's cash flow has varied greatly since it operates in
high-volatile markets such as Brazil, Argentina, Paraguay,
Portugal, Egypt, Mozambique and South Africa. Around 85% of its
EBITDA originates in countries rated 'BB-' or lower.

From an operational perspective, InterCement currently shows
weaker position compared with other large players, such as
LafargeHolcim (BBB/Stable) and CEMEX (BB-/Positive), which show
greater geographic diversification and more stable markets.
Votorantim Cimentos (BBB-/Stable), which is also a Brazilian
cement player but with strong operations in the U.S. and Canada
and other regions, is not a direct peer, as its rating is tied to
that of the Votorantim Group, which also includes mining, pulp and
financial services subsidiaries.

From a financial perspective, InterCement's expected net leverage
at 5.5x-6.0x range compares with expectations for CEMEX's net
leverage below 4.5x, and it is high relative to the 4.3x median
net leverage ratio of Fitch's Latin America corporate issuers in
the 'B' rating category. InterCement's poor operating cash flow
generation is currently a key rating constraint.

KEY ASSUMPTIONS

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

  -- Stable volumes in Brazil for 2018 and 2% in 2019;

  -- Slightly improvement in operating margins following capacity
shutdowns during 2015 and 2016;

  -- Capex levels around EUR180 millionEUR200 million during 2018-
2019;

  -- Maintenance of adequate liquidity profile, efficient
liability management strategy to avoid refinancing risks in the
short term.

Key Recovery Rating Assumptions ASSUMPTIONS
The recovery analysis assumes that InterCement would be considered
a going concern in bankruptcy and that the company would be
reorganized rather than liquidated. Fitch has assumed a 10%
administrative claim.

Going Concern Approach: InterCement's going concern EBITDA is
based on 2016-2017 average EBITDA that reflects a scenario of
recession in the Brazilian market in terms of sales volumes and
prices. The going concern EBITDA estimate reflects Fitch's view of
a sustainable, post-reorganization EBITDA level upon which Fitch's
bases the valuation of the company. The EV/EBITDA multiple applied
is 5.0x, reflecting InterCement's strong market share in most of
its markets and it also reflects a mid-cycle multiple.

Fitch applies a waterfall analysis to the post-default enterprise
value (EV) based on the relative claims of the debt in the capital
structure. Fitch's debt waterfall assumptions take into account
the company's total debt at March 31, 2018. The waterfall results
in a 52% 'RR3' Recovery Rating for senior unsecured debt, but due
to Fitch's soft country recovery rating cap on Brazil of 'RR4',
InterCement's senior unsecured notes due 2024 is rated 'B+'/'RR4'.

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Positive Rating Action
  -- Additional proactive steps by the company to materially
bolster its capital structure in the absence of high operating
cash flow.

  -- Faster than expected deleverage to below 5x on a sustained
basis, and consistent FCF generation to pay down gross debt
levels.

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

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

  -- Deterioration in InterCement's liquidity profile or
difficulties to progress on refinancing strategy during 2019
leading to higher refinancing risks;

  -- Net leverage above 6.5x on a recurring basis.

LIQUIDITY

Manageable Liquidity: InterCement's cash flow challenges have
diminished its track record of strong liquidity position and
remains a concern, but the resources from the IPO (EUR953 million)
provided a degree of comfort. The company's liquidity is
sufficient to cover debt coming due through mid-2020. As of March
31, 2018, InterCement reported cash and equivalents EUR635.0
million and total debt of EUR2.3 billion. The company has debt
amortizations of EUR88 million in 2018, EUR305 million in 2019,
EUR394 million in 2020, EUR1.6 billion thereafter, as of June 11,
2018 when the company refinanced part of its debt. As of March 31,
2018, approximately 41% of the company's debt is denominated in
U.S. dollars 28% in Euros and 25% in Brazilian reals (BRL).


FULL LIST OF RATING ACTIONS

Fitch has downgraded the following ratings:

InterCement Participacoes S.A.

  -- Long-Term Local Currency IDR to 'B' from 'BB-';

  -- Long-Term Foreign Currency IDR to 'B' from 'BB-';

  -- Long-Term National Rating to 'BBB-(bra)' from 'A(bra)'.

InterCement Brasil S.A.

  -- Long-Term Local Currency IDR to 'B' from 'BB-';

  -- Long-Term Foreign Currency IDR to 'B' from 'BB-';

  -- Long-Term National Rating to 'BBB-(bra)' from 'A(bra)'.

Cimpor Financial Operations B.V.

  -- Senior unsecured notes unconditionally guaranteed by
InterCement Brasil S.A. due 2024 to 'B' from 'BB-' and assigned a
Recovery Rating (RR) of 'RR4'.



===================
C O S T A   R I C A
===================


COSTA RICA: Unions Say General Strike Making an Impact
------------------------------------------------------
The Latin American Herald reports that Costa Rican unions said the
second day of a national strike against a proposed expansion in
consumption taxes that they are satisfied with the results so far.

"The cuts are encouraging, as they reflect that the regionalized
national strike has served its purpose on this second day," the
head of ANEP labor federation, Albino Vargas, told EFE, according
to The Latin American Herald.

These past two days have served as "preparation and warm up" for a
"large march" planned in San Jose, he said, the report relays.

Groups of state workers kicked off an indefinite strike in
rejection of a tax reform currently being debated in Congress, the
report discloses.

The report notes that Sept. 11 saw manifestations and temporary
blockades in several thoroughfares throughout the country, and the
strike has affected the education and health sectors.

Los unions are rejecting a proposed tax reform, which is aimed at
reducing the budget deficit, as they believe it will mostly affect
the lower and middle classes, especially public employees, the
report relays.

The centerpiece of the legislation is the replacement of the
current 13 percent sales tax with a value added tax at the same
rate, but applied to a broader range of goods and services, the
report notes.

"We believe that the tax combo fosters inequality and the
concentration of wealth," Mr. Vargas said, adding that he thinks
that it does not deter tax evasion, while it does tax employees to
settle a public debt that the people did not generate, the report
adds.

As reported in the Troubled Company Reporter-Latin America on
Feb. 26, 2018, S&P Global Ratings affirmed its 'BB-' long-term
foreign and local currency sovereign credit ratings on the
Republic of Costa Rica. The outlook remains negative. At the same
time, S&P affirmed its 'B' short-term foreign and local currency
sovereign credit ratings and its 'BB+' transfer and convertibility
assessment.


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


DOMINICAN REPUBLIC: Taps RD$700MM for Dairy, Livestock Sector
-------------------------------------------------------------
Dominican Today reports that Agricultural Development Fund (FEDA)
Director Casimiro Ramos said the Govt. allocates RD$700.0 million
for dairy production and the livestock sector in 46 projects that
benefit some 4,000 small producers.

He said the allocation is an example of how president Danilo
Medina's surprise visits have democratized investments during six
years, according to Dominican Today.

The official affirmed that thanks to this policy, milk production
has been doubled from 59,000 liters to 118,000 liters daily and
with a distribution of 660,000 servings per day in the school
breakfast, the report notes.

The report relays that Mr. Ramos added that the FEDA has built a
"dairy circuit" nationwide, including processing plants to add
value to production and for small farmers to increase profits.

"There's no doubt that for the livestock producers of the country
there is a before and after the arrival of president Danilo
Medina," he said, notes the report.

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.


* DOMINICAN REPUBLIC: Envoy in China Talks Business, Investments
----------------------------------------------------------------
Dominican Today reports that Dominican Republic's ambassador in
China headed a meeting with business leaders of the Asian nation
interested in investing in the country.

Briunny Garabito's meeting came two hours after presenting his
credentials to China president, Xi Jinping, according to Dominican
Today.

The investors present are planning to visit the Dominican Republic
before the end of the year, to explore the businesses
opportunities, taking advantage of its geographical position, its
climate of peace, legal security and the stimulus to attract
foreign investment promoted by the government, the report notes.

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.



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


BAJA CALIFORNIA: Moody's Cuts Issuer Rating on B1, Outlook Neg.
---------------------------------------------------------------
Moody's de Mexico S.A. de C.V downgraded the State of Baja
California issuer ratings to B1/Baa2.mx (Global Scale
rating/Mexican National Scale rating) from Ba3/A3.mx. The ratings
outlook remains negative.

RATINGS RATIONALE

RATIONALE FOR THE RATINGS DOWNGRADE

The downgrade of Baja California's issuer ratings to B1/Baa2.mx
from Ba3/A3.mx reflects the state's recurring consolidated
deficits and significant cash financing needs, which continue to
put pressure on its liquidity metrics.

During 2017, Baja California posted a cash financing deficit of
4.9% of total revenues, a weak result that was only slightly
better than the 5.4% average deficit registered between 2013-2016.
The improvement in 2017 reflected strong revenue growth of 10%,
which exceeded the 9% rise in expenditures last year. Nonetheless,
this improvement was not sufficient to redress the state's fiscal
pressures. Moody's expects the state will continue posting cash
financing deficits of around 5% of total revenues during 2018 and
2019 as a result of ongoing pressure to boost education spending
and to make extraordinary transfers to state enterprises including
public water companies and Baja California's pension system
(ISSSTECALI). Transfers to ISSSTECALI equaled roughly 6% of total
revenues during 2017 and Moody's estimates that in 2018 and 2019
Baja California will continue dedicating similar levels of support
to ISSSTECALI given the system's high unfunded pension liabilities
and its low reserve levels. ISSTECALI's unfunded liabilities
equaled 208% of total revenues, according to the latest actuarial
study conducted in 2016, far above the 100% median for Mexican
states.

Baja California did not contract additional debt to finance its
deficits in 2017, but instead used available liquidity. Debt to
total revenues decreased to 25.7% in 2017 from 28.5% in 2016.
Although the state's level of indebtedness is in line with peers,
a relatively high concentration of short term debt, which equaled
16.5% of gross debt as of December 2017, represents a challenge.
Moody's expects that the state will continue acquiring short-term
debt during 2018, which will reach 20% of total debt by the end of
the year. Given that the state will have a change in
administration in November 2019, Baja California will have to pay
off all short term debt before July to comply with a Mexican law
requiring outgoing administrations to leave no short-term balances
during their final three months in office. Moody's expects debt
levels will rise to 30% of total revenues by the end of 2019 as
the state could finance its deficits with long term debt or
contract additional short term debt at the end of the year.

Baja California's liquidity, measured by net working capital
(current assets less current liabilities), fell to -12.6% of total
expenditures in 2017 from -4.3% at the end of 2014, while cash to
current liabilities also decreased to 0.07x at the end of 2017
compared to a 0.5x in 2014. The deterioration mainly reflects the
recurrent acquisition of short term debt and a decrease of
available cash. As of June 2018, cash to current liabilities
deteriorated further and was equivalent to 0.01x, much weaker than
most Mexican rated states.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects Moody's expectation that the state
will continue to face challenges in overcoming its structural
deficit, resulting in cash financing shortfalls of around 5-6% of
total revenues in 2018 and 2019. This will likely lead to
increased reliance on short-term debt and a continued weakening of
liquidity levels.

WHAT COULD CHANGE THE RATING UP/DOWN

Given the negative outlook, a rating upgrade is unlikely. However,
the state's ratings could be stabilized if Baja California is able
to sustainably reduce its cash financing needs, leading to a debt
stabilization and a considerable improvement of liquidity metrics.
Conversely, if the state continues registering consolidated
deficits and its short term debt balances continue to rise
resulting in a further deterioration in its liquidity, the ratings
could face downward pressure.

The principal methodology used in these ratings was Regional and
Local Governments published in January 2018.


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


AGENCIA FINANCIERA: Moody's Gives Ba1 IR, Outlook Stable
--------------------------------------------------------
Moody's Investors Service has assigned a local currency Ba1 issuer
rating with a stable outlook to Agencia Financiera de Desarrollo,
as well as local and foreign currency counterparty risk ratings of
Ba1 and Not-Prime. Moody's also assigned a ba2 baseline credit
assessment (BCA) and adjusted BCA and long and short term
counterparty risk assessments of Ba1(cr) and Not-Prime(cr)
respectively. The outlook is stable.

This is the first time that Moody's has rated Agencia Financiera
de Desarrollo.

The following ratings and assessments were assigned to Agencia
Financiera de Desarrollo:

  - Long and short term global scale issuer rating of Ba1, stable
outlook, and Not-Prime

  - Long and short term local currency counterparty risk ratings
of Ba1 and Not-Prime

  - Long and short term foreign currency counterparty risk ratings
of Ba1 and Not-Prime

  - Adjusted baseline credit assessment of ba2

  - Baseline credit assessment of ba2

  - Long and short term counterparty risk assessment of Ba1(cr)
and Not-Prime(cr)
Outlook, Stable

RATINGS RATIONALE

Agencia Financiera de Desarrollo's (AFD) Ba1 issuer rating
incorporates the agency's role as the only fully government-owned
"second floor" bank in Paraguay. AFD provides funding to other
financial institutions to onlend to borrowers in various sectors
of the economy in support of the government's economic development
goals. AFD's financial obligations in both local and foreign
currency are guaranteed by the Paraguayan government (Ba1 stable).

The agency's rating also reflects its very strong asset quality
and high levels of capitalization, offset by its relatively low
levels of profitability versus banking peers and heavy reliance on
market funding.

Even as the agency's loan book has grown at an aggressive average
annual rate of 24% since 2014, AFD has had zero delinquencies
since it was founded, which reflect its conservative underwriting
standards and focus on lending to solid financial institutions in
Paraguay, as well as legal provisions which protect the agency's
exposures. As of June 2018, 79% of AFD's PGY 3.9 trillion (USD 674
million) loan book was directed to banks, 19% to cooperatives, and
the remainder mainly to finance companies (empresas financieras).
Under law, AFD's loans to financial institutions have privileged
status and in the event of a bankruptcy of one of its borrowers,
AFD would have a senior claim over that entity's depositors and
secured creditors.

Although AFD maintains strict underwriting criteria with regards
to loans funded with the financing it provides to financial
institutions, it does not assume any credit risk related to the
ultimate borrowers of its funds. These risks are entirely borne by
the financial institutions which originate these loans and to
which AFD lends directly. While this significantly reduces AFD's
own credit risk, as the ultimate borrowers are generally much
smaller and presumably risker than the FIs to which AFD lends
notwithstanding the underwriting criteria, it nevertheless leaves
AFD with a very high degree of industry concentration.

Despite its history of zero delinquencies and the preferential
status of its loans, AFD also provisions against its loan
exposures under a scale vetted by the Central Bank of Paraguay
(BCP). As of December 2017, loan loss reserves to gross loans were
0.4%, providing a sufficient reserve against unexpected losses.

Although AFD does not report a regulatory capital ratio or risk-
weighted assets, Moody's considers the agency to have a very
strong level of capitalization despite very rapid loan growth. As
of June 2018, tangible common equity (TCE), as measured by
Moody's, was 28.1% of total assets. Even if the agency's exposures
were risk-weighted at over 150% on average (which would be
extremely conservative given its focus on lending to financial
institutions), it would still have a very strong capitalization
ratio of 19.7%. In addition to reinvesting 100% of its earnings,
the agency's capital is supported by annual capital injections
from the national public investment and development fund, FONACIDE
- Fondo Nacional de Inversion Publica y Desarrollo. Under law, 7%
of Fonacide's resources are transferred to AFD annually; in 2017,
AFD received PGY 191 billion from FONACIDE, equal to approximately
15.5% of its tangible common equity.

However, AFD's profitability is relatively modest given its
mission, which is focused on development and job creation and not
on maximizing profitability. As a result, net income was just 0.8%
of tangible assets in 2017, well below that of rated commercial
banks in Paraguay.

As a non-deposit taking institution, AFD funds itself through
wholesale funding sources, mostly local currency bonds and dollar-
denominated cross-border loans, as well as equity. As of June
2018, 73% of AFD's funding was derived from bonds. Despite its
heavy reliance on wholesale funding, however, refinancing risk is
mitigated by the fact that the bonds are mainly held by the
Paraguayan deposit guarantee fund (Fondo de Guarantia de Depositos
del BCP) and other state pension funds such as Instituto de
Prevision Social, while its loans were provided by multilateral
agencies. Consequently, AFD's liquidity is relatively low despite
its reliance on market funding, with liquid assets equal to just
17.4% of its tangible assets as of June 2018.

AFD's rating also considers Moody's assessment of the agency as
government-backed based on the government's guarantee of its
financial obligations as prescribed by law, its legal status as a
development bank wholly-owned by the government, and its important
policy role. Consequently, the agency's rating is aligned with
that of the government.

The stable outlook on AFD's ratings is in line with the stable
outlook on the Government of Paraguay and also reflects its
expectation that AFD's asset risk will remain very low and capital
will remain robust.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Given its government backing, AFD's ratings would face upward
pressure if the Government of Paraguay's rating is upgraded. AFD's
standalone BCA could also be upgraded if it were to improve its
profitability and/or increase its holdings of liquid assets. As
the agency's issuer rating is already aligned with that of the
government, however, this would have no effect on the issuer
rating absent an upgrade of Paraguay's sovereign rating.

On the other hand, a downgrade in the bond rating of Paraguay
would lead to a downgrade in AFD's issuer ratings. AFD's BCA could
also be downgraded should its asset risk and/or capital
deteriorate sharply. Absent a downgrade of Paraguay's sovereign
rating, however, this is unlikely to affect AFD's issuer rating.

The principal methodology used in these ratings was Banks
published in August 2018.


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


J & M SALES: Taps Imperial Capital as Investment Banker
-------------------------------------------------------
J & M Sales Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to hire Imperial Capital, LLC as its
investment banker.

The firm will conduct a financial valuation of the ongoing
operations of the company and its affiliates; assist the Debtors
in developing, structuring and negotiating a potential
restructuring plan, financing or sale transaction; and provide
other financial advisory services related to their Chapter 11
cases.

Imperial Capital will be compensated according to this fee
arrangement: (i) a monthly advisory fee of $100,000, payable
monthly in advance; (ii) $1 million fee, payable in cash upon the
closing of a restructuring; (iii) a sale transaction fee
consisting of 1% of the consideration received by the Debtors or
their equity security holders, payable in cash at closing; and a
financing fee, payable from the proceeds of the new financing at
closing, equal to 1% of the face amount of any new first lien ABL
debt as part of the financing, or no fee if a financing
transaction with Pathlight Capital LLC is consummated.

Marc Bilbao, managing director of Imperial Capital, disclosed in a
court filing that his firm is a "disinterested person" as defined
in section 101(14) of the Bankruptcy Code.

Imperial Capital can be reached through:

     Marc Bilbao
     Imperial Capital, LLC
     10100 Santa Monica Blvd., Suite 2400
     Los Angeles, CA 90067
     Office: (310) 246-3700
     Toll Free: (800) 929-2299
     Fax: (310) 777-3000

                       About National Stores

National Stores is a 344-store chain in 22 U.S. states and Puerto
Rico.  National Stores currently does business as Fallas, Fallas
Paredes, Fallas Discount Stores, Factory 2-U, Anna's Linen's by
Fallas, and Falas (spelled with single "l" in Puerto Rico).
Fallas, which emplolys 9,800 people, is a discount retailer
offering value-priced merchandise, including apparel, bedding and
household supplies.  The brands of National Stores are located in
retail plazas, specialty centers, and downtown areas to serve the
communities its customers and staff members call home.

National Stores, Inc., and its affiliates sought Chapter 11
protection and Aug. 6, 2018, and announced that Hilco Merchant
Resources, LLC, is conducting going-out-of-business sales for 74
stores.  The lead case is In re J & M Sales Inc. (Bankr. D. Del.
Lead Case No. 18-11801).  J & M Sales estimated assets and debt of
$100 million to $500 million as of the bankruptcy filing.

The Hon. Laurie Selber Silverstein is the case judge.

The Debtors tapped Katten Muchin Rosenman LLP as general
bankruptcy counsel; Pachulski Stang Ziehl & Jones LLP as
bankruptcy co-counsel; Retail Consulting Services, Inc. as real
estate advisor; Imperial Capital, LLC as investment banker; and
Prime Clerk LLC as the claims and noticing agent.
SierraConstellation Partners, LLC is providing personnel to serve
as chief restructuring officer and support staff.


STONEMOR PARTNERS: Delays Second Quarter Financial Report
---------------------------------------------------------
StoneMor Partners L.P. was unable to file its Quarterly Report on
Form 10-Q for the fiscal quarter ended June 30, 2018 by the
prescribed filing deadline (Aug. 9, 2018) without unreasonable
effort or expense because the preparation and filing of the
Partnership's Annual Report on Form 10-K for the fiscal year ended
Dec. 31, 2017, which was filed on July 17, 2018, took longer than
expected and, as a result, the Partnership has not yet been able
to file its Quarterly Report on Form 10-Q for the fiscal quarter
ended March 31, 2018.  The Partnership is working to finalize its
financial statements to be included in its March 31 Form 10-Q.  In
that regard, the June 30 Form 10-Q will not be filed until after
the March 31 Form 10-Q is filed.  The Partnership will file the
June 30 Form 10-Q as promptly as practicable after the March 31
Form 10-Q is filed.

The Partnership has adopted a new revenue-recognition standard
effective starting in the first quarter of 2018 (Accounting
Standards Update 2014-09, Revenue from Contracts with Customers
(Topic 606) using the modified retrospective approach, which
recognizes the cumulative effect of the adoption on Jan. 1, 2018.
Adoption of ASC 606 has impacted the timing of revenue
recognition,
but the Partnership has not completed its assessment of the
cumulative effect adjustment and thus cannot provide a reasonable
estimate of the anticipated change in net revenues and related
statement of operations items for the fiscal quarter and six
months ended June 30, 2018 compared to the fiscal quarter and six
months ended June 30, 2017.

                     About StoneMor Partners

StoneMor Partners L.P., headquartered in Trevose, Pennsylvania --
http://www.stonemor.com/-- is an owner and operator of cemeteries
and funeral homes in the United States, with 322 cemeteries and 93
funeral homes in 27 states and Puerto Rico.  StoneMor is the only
publicly traded death care company structured as a partnership.
StoneMor's cemetery products and services, which are sold on both
a
pre-need (before death) and at-need (at death) basis, include:
burial lots, lawn and mausoleum crypts, burial vaults, caskets,
memorials, and all services which provide for the installation of
this merchandise.

Stonemor reported a net loss of $75.15 million on $338.22 million
of total revenues for the year ended Dec. 31, 2017, compared to a
net loss of $30.48 million on $326.23 million of total revenues
for
the year ended Dec. 31, 2016.  As of Dec. 31, 2017, Stonemor had
$1.75 billion in total assets, $1.66 billion in total liabilities
and $91.69 million in total partners' capital.

                           *    *    *

In April 2018, S&P Global Ratings affirmed its 'CCC+' corporate
credit rating on StoneMor Partners L.P.  S&P said, "The rating
affirmation reflects our expectation that the company can generate
operating cash flow of approximately $25 million in 2018 to
support
operating needs for at least another year."


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


TRINIDAD & TOBAGO: Rowley Wanted Guyana Land for Debt
-----------------------------------------------------
Trinidad Express reports that as Prime Minister Keith Rowley gets
ready to sign a controversial Memorandum of Understanding to
promote cooperation between T&T and Guyana on energy issues in
Georgetown, a search of the Parliamentary records reveals that in
June 1996 he opposed the debt relief program that the Basdeo
Panday administration agreed to grant Guyana in May 1996.

The issue of T&T's cancellation of hundreds of millions of
Guyanese US dollar debt arose following push back among Guyanese
politicians and private sector leaders over the signing of the
MoU, according to Trinidad Express.



=================
V E N E Z U E L A
=================


VENEZUELA: Supporters March in Support of Maduro
------------------------------------------------
EFE News reports that thousands of Venezuelan government
supporters took to the streets protesting what they describe as US
imperialism.

Demonstrators made their way downtown, where they listened to
speeches by several leaders of the movement launched by the late
Hugo Chavez, President Maduro's predecessor and political mentor,
according to EFE News.

The report notes that President Maduro -- who a bit more than a
month ago escaped an assassination attempt while speaking at a
public event -- declined to attend the manifestation, in which
hundreds of members of the governing leftist PSUV party marched
through the streets of the capital.

"All we ask is for them to get their hands out of Venezuela," the
PSUV's Pedro Carreno told reporters, referring to the United
States, the report relays.  "We are telling the empire, the
enemies of the motherland and the domestic and international
reactionary right, that the people are not willing to be the
victim of more threats and persecution," he added.

The report discloses that the speaker of the PSUV-controlled
National Constituent Assembly, Diosdado Cabello, encouraged the
public to "prepare to defend the motherland" from a possible armed
attack on the oil-rich country.

"The empire is used to trample over countries," Cabello said, and
accused several Latin American chiefs of state, including
Argentina's Macri, Colombia's Duque and Brazil's Temer of being
lackeys to imperialism, the report relays.

The report notes that the Trump administration called on members
of the UN Security Council to stop their support of President
Maduro, who officials accused of heading a "corrupt regime."

The US has imposed harsh economic sanctions on Venezuela and
President Donald Trump hinted months ago at possible military
action against the President Maduro government, the report relays.

Venezuela is currently experiencing an economic crisis, which
translates to hyperinflation and shortages, forcing President
Maduro to launch a series of palliative measures that include
price controls, a steep devaluation of the currency and a
corresponding 35-fold increase in the minimum wage, the report
adds.

As reported in the Troubled Company Reporter-Latin America on
June 1, 2018, 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. S&P's transfer and convertibility assessment remains at
'CC'.

                            ***********


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 * * *