/raid1/www/Hosts/bankrupt/TCRLA_Public/181023.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, October 23, 2018, Vol. 19, No. 210


                            Headlines



B R A Z I L

JBS INVESTEMENTS: Fitch Assigns BB- on $500MM Sr. Unsec. Notes
SAO PAULO: S&P Affirms 'BB-' Global Scale Issuer Credit Ratings


C A Y M A N  I S L A N D S

PPC LIMITED: First Creditors' Meeting Set November 1


C O L O M B I A

MILLICOM INT'L: Fitch Rates $500MM Sr. Unsec. Notes BB+


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Unaware of Potential of Mining Assets
DOMINICAN REPUBLIC: Jump in Fuels, Dollar Push Staples Up to 30%


J A M A I C A

JAMAICA: TAJ Surpasses Collection Target for Second Quarter


M E X I C O

ALPHA HOLDING: S&P Affirms 'B-' Global Scale Issuer Credit Rating


P E R U

NAUTILUS INKIA: Fitch Alters Outlook on BB IDRs to Negative


P U E R T O    R I C O

UNIVERSAL HEALTH: Moody's Rates $3.5-Bil. Credit Facilities 'Ba1'


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Preparing $950MM Payment on 2020 Bond


                            - - - - -


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B R A Z I L
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JBS INVESTEMENTS: Fitch Assigns BB- on $500MM Sr. Unsec. Notes
--------------------------------------------------------------
Fitch Ratings has assigned a final rating of 'BB-' to the USD500
million senior unsecured notes due in 2026 issued by JBS
Investments II GmbH, a wholly-owned subsidiary of JBS S.A. The
assignment of the final ratings follows the receipt of documents
conforming to information already received. The final ratings are
the same as the expected rating assigned to the senior unsecured
notes on Oct. 12, 2018.

These notes will be unconditionally guaranteed by JBS S.A. The
notes will rank pari passu with JBS's other unsecured obligations.
The proceeds are expected to be used to refinance existing
indebtedness including JBS's 2020 notes pursuant to a cash tender
offer.

KEY RATING DRIVERS

Solid Business Profile: JBS's business profile is strong due to
its size, geographical and protein diversification in pork,
poultry and beef. The company is the most geographically
diversified company in the protein sector that Fitch rates due to
its strong presence in the U.S., South America, Australia and
Canada. This geographic diversity enables the group to mitigate
business volatility inherent to the industry. The outlook for the
protein industry remains positive due to strong international
demand for protein products. The company's product and geographic
diversification help mitigate risks related to disease and trade
restrictions. Exports represent 25% of JBS global sales.

Lower Leverage Expected: Fitch expects JBS to continue to
deleverage due to strong FCF generation due to the strong
performance of the company's U.S. operations (including Canada and
Australia). These operations should represent about 85% of Fitch
2018 EBITDA projection of about BRL14 billion. The strong U.S.
operating performance is driven by good cattle supply and strong
demand for beef in the domestic market. JBS's U.S. poultry and
pork division benefit from strong domestic demand but increased
supply has pressured prices and operating margin. Fitch expects
JBS's Brazilian beef division to recover gradually in 2018 and
2019 due to the nation's positive cattle cycle and a weaker
Brazilian real, which makes Brazilian protein producers more
competitive in export markets. Fitch forecasts JBS's net
debt/EBITDA ratio to be at about 3x in year-end fiscal 2019. JBS
reported an LTM net debt/ EBITDA ratio of 3.5x as of June 30,
2018.

Ongoing Investigation: JBS's rating is constrained by the
uncertainty surrounding several investigations involving JBS and
its shareholders. These investigations include administrative
procedures by the CVM (Brazilian Securities and Exchange
Commission), potential fines from the U.S. Department of Justice,
and an investigation by Brazil's attorney general on possible
breaches of the terms agreed to in the J&F Investimentos S.A.
(J&F) leniency agreement. These ongoing legal matters create
uncertainty regarding the timing and magnitude of potential fines
that the company might face. They also represent a threat to the
maintenance of the leniency agreement signed by the controlling
shareholders, J&F, with the Brazilian Federal Public Prosecutor's
Office (MPF) concerning corruption allegations.

DERIVATION SUMMARY

JBS's ratings reflect ongoing litigation issues related to
corruption investigations of the company and uncertainty regarding
potential fines that could damage the company's credit profile and
access to the capital market.

JBS has a strong business profile as the world's largest beef and
leather producer and diversification in chicken, beef, pork, and
prepared food. This allows the company to minimize risks of
operating in one protein or region, placing the company in a
favorable position from a business risk perspective versus Marfrig
Global Foods (BB-/Stable) and Minerva SA (BB-/Stable). Minerva is
a pure play in the beef industry in South America. Marfrig will
also become a pure player in the beef industry upon conclusion of
the recent acquisition of National beef in the U.S. and the sale
of its poultry business, Keystone.

With a LTM net debt/ EBITDA ratio at 3.5x as of 2Q18, JBS's net
leverage is lower than its Brazilian protein peers. Fitch expects
the company to generate strong FCF this year while its other
Brazilian peers are displaying negative FCF due to expansion
capex. However, JBS's leverage remains higher than Tyson Foods
Inc. (BBB/Stable) or Smithfield Foods Inc. (BBB/Stable).

KEY ASSUMPTIONS

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

  -- Single digit revenues growth driven;

  -- EBITDA of about BRL14 billion in year-end fiscal 2018;

  -- Capex of BRL3.4 billion in 2018;

  -- Net debt/ EBITDA at about 3x by in 2019.

RATING SENSITIVITIES

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

  -- An upgrade could occur if no significant fines result from
     the ongoing investigation;

  -- Net debt/ EBITDA below 3x on a sustained basis;

  -- Strong liquidity.

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

  -- Large legal fines that would put pressure on the company's
     liquidity and deleverage in the near term could trigger a
     downgrade;

  -- Net leverage above 4x on a sustained basis could lead to a
     downgrade.

LIQUIDITY

As of June 30, 2018, JBS had BRL13.1 billion of cash and cash
equivalent and short-term debt of BRL4.3 billion (mostly trade
finance debt). Additionally, JBS USA has a USD1.9 billion
available unencumbered line under revolving credit.

The company signed a debt-normalization agreement with several
financial institutions on May 14, 2018. The terms of the
Normalization Agreement ensure the maintenance of credit lines
totaling approximately BRL12.2 billion for a period of 36 months
as of July 2018, and includes approximately a 25% amortization of
the principal payable between January 2019, and the expiry of the
Normalization Agreement in July 2021. On Sept. 12, 2018, JBS SA
made an early repayment in the aggregate principal amount of BRL2
billion of the approximately BRL12.2 billion in outstanding
principal amount.

FULL LIST OF RATING ACTIONS

Fitch currently rates JBS SA as follows:

JBS S.A.:

  -- Long-Term Foreign and Local Currency Issuer Default Ratings
    'BB-';

  -- National Scale rating 'A (bra)'.

JBS Investments GmbH

  -- Notes due 2020, 2023, 2024 'BB-.'

Fitch assigns the following rating:

JBS Investments II GmbH

  -- Senior unsecured notes 'BB-'.


SAO PAULO: S&P Affirms 'BB-' Global Scale Issuer Credit Ratings
---------------------------------------------------------------
S&P Global Ratings affirmed its global scale 'BB-' long-term
foreign and local currency issuer credit ratings on the state of
Sao Paulo.

S&P said, "We also affirmed our national scale 'brAAA' rating on
the state. We subsequently withdrew all our ratings on the state
due to business reasons. At the time of the withdrawal, the
outlook on both scale ratings was stable."

At the time of the withdrawal, the long-term foreign and local
currency ratings on the state reflected its prudent fiscal
policies, strong fiscal results despite Brazil's subdued economy
and limited room to cut expenses, and cash levels sufficient to
almost cover its projected debt service in the next 12 months. At
the time of the withdrawal, the 'BB-' global scale rating on Sao
Paulo was two notches below its 'bb+' stand-alone credit profile.

S&P said, "We capped our global scale ratings on the state at the
same level as on the sovereign because Sao Paulo didn't meet our
criteria to have a higher rating above than the one on the
sovereign. This is because, according to our criteria, we don't
believe Sao Paulo's liquidity is strong enough to withstand a
stress scenario. Moreover, a local or regional government can have
a higher rating than its sovereign only if the former can maintain
stronger credit characteristics than the sovereign in a stress
scenario, operates under a predictable institutional framework
that limits central government interference, and displays high
financial flexibility. Our current assessment of institutional
framework assessment on Brazilian local and regional governments
caps their ratings."

KEY SOVEREIGN STATISTICS

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 chair
ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  RATINGS LIST

  Ratings Affirmed

  Sao Paulo (State of)
   Issuer Credit Rating
   Global Scale                           BB-/Stable/--
   Brazil National Scale                  brAAA/Stable/--

  Ratings Withdrawn                       To          From
  Sao Paulo (State of)
   Issuer Credit Rating
   Global Scale                           NR     BB-/Stable/--
   Brazil National Scale                  NR     brAAA/Stable/--



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C A Y M A N  I S L A N D S
==========================


PPC LIMITED: First Creditors' Meeting Set November 1
------------------------------------------------------
The first creditors' meeting of PPC Limited, in liquidation, will
be held on Nov. 1, 2018, at 7:00 a.m. (Cayman Islands Time) via
telephone.

Keiran Hutchison, Colin Peter Dempster and Gavin David Yuill are
appointed as joint official liquidators.

The liquidators can be reached at:

          Keiran Hutchison
          EY Cayman Limited
          62 Forum Lane, PO Box 510
          Grand Cayman
          Cayman Islands, KY1-1106

          Colin Peter Dempster
          Ernst & Young LLP
          Atria One, 144 Morrison Street
          Edinburg, United Kingdom, EH3 8EX

          Gavin David Yuill
          Ernst & Young LLP
          G15 George Square
          Glasgow, United Kingdom, G15 1DY



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C O L O M B I A
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MILLICOM INT'L: Fitch Rates $500MM Sr. Unsec. Notes BB+
-------------------------------------------------------
Fitch Ratings rates Millicom International Cellular, S.A.'s (MIC)
USD500 million senior unsecured 2026 notes 'BB+'. Proceeds from
the issuance are expected to be used to refinance part of a bridge
loan that will be used for Millicom's announced acquisition of
Cable Onda.

MIC's ratings reflect the company's geographic diversification,
strong brand recognition and network quality, all of which
contributed to leading positions in key markets, a strong
subscriber base, and solid operating cash flow generation. In
addition, the rapid uptake in subscriber data usage and MIC's
ongoing expansion into the underpenetrated fixed-line services
bode well for medium to long-term revenue growth. MIC's ratings
are tempered, despite the company's diversification benefits, by
the issuer's presence in countries in Latin America and Africa
with low sovereign ratings and low GDP per capita. The operational
environment in these regions, in terms of political and regulatory
stability and economic conditions, tends to be more volatile than
in developed markets.

The ratings reflect Millicom's financial and business profile as
the company continues to implement its strategy to phase out
legacy services in favour of underpenetrated data and content
services. Fitch also views positively the company's strategy to
divest assets in low return countries and reinvest in higher-
return markets. Post financing of Cable Onda, Fitch expects the
company's leverage, as measured by adjusted consolidated net debt
to EBITDA, will increase to 2.8x then trend down in the short to
medium term.

KEY RATING DRIVERS

Acquisition to Increase Diversification: Millicom will acquire a
controlling 80% stake in Cable Onda, the leading cable and fixed
telecommunications services provider in Panama, for USD1.2
billion. The acquisition increases Millicom's regional
diversification and increases the company's cable and broadband
exposure. Cable Onda has a leading market position in Panama with
more than 50% market share in Pay-TV and broadband. Fitch expects
Cable Onda to represent 7% of Millicom's consolidated EBITDA on a
pro forma basis. Fitch views positively Panama's investment-grade
rating of 'BBB'/Outlook Stable as well as the country's dollarized
economy. The acquisition is expected to close by year-end 2018.

Expected Deleveraging to Bolster Credit Quality: Fitch forecasts
Millicom's adjusted consolidated net leverage is expected to
increase toward 2.8x as the company issues new debt to fund its
acquisition. Fitch expects the company to finance the acquisition
of Cable Onda with existing cash and new debt. Millicom has
secured bridge financing from a group of banks and has raised
USD500 million of senior unsecured debt at the holding company and
is expected to raise an additional amount of up to USD500 million
at operating subsidiaries. Fitch's base case expects leverage to
trend down to 2.5x and below in the medium term, backed by growing
cash flow generation and EBITDA.

Strong Market Positions: Fitch expects MIC's strong market
position to remain intact, supported by network quality and
extensive coverage, strong brand recognition and growing fixed-
line home operations (cable & broadband).  These qualities,
exhibited across well-diversified operationa geographies, should
enable the company to continue to support stable cash flow
generation and growth opportunities in underpenetrated data and
cable segments. As of June 30, 2018, the company maintained
competitive market positions in its key mobile markets of
Guatemala, Paraguay, Honduras and Colombia.

Stable Performance: Fitch forecasts MIC's EBITDA generation will
improve to USD2.4 billion in 2018, followed by modest growth over
the medium term driven by the company's acquisition of Cable Onda
as well as increasing penetration of mobile data and fixed-line
services. The company's reported revenues have contracted slightly
in recent years, due to the impact of asset disposals. EBITDA has
remained relatively stable as Millicom continued to benefit from
lower corporate and general and administrative costs.

Strong Upstream Dividends: Creditors of the holding company are
subject to structural subordination to the creditors of the
operating subsidiaries given that all cash flows are generated by
subsidiaries. As of June 30, 2018, the group's consolidated gross
debt was USD5.3 billion, with 67% allocated to the operating
subsidiaries. Positively, Fitch believes that a stable and high
level of cash upstreams, through dividends and management fees
from its subsidiaries, is likely to remain intact over the long
term and will mitigate any risk stemming from this structural
weakness.

DERIVATION SUMMARY

MIC's rating is well positioned relative to regional telecom peers
in the 'BB' rating category based on a solid financial profile,
operational scale and diversification, as well as strong positions
in key markets. These strengths are offset by a high concentration
in countries with low sovereign ratings in Latin America and
Africa, which tend to have more volatile economic environments.

MIC boasts a much stronger financial profile, compared with
diversified integrated telecom operators in the region such as
Cable & Wireless Communications Limited (BB-/Stable) and Digicel
Limited (CCC/Rating Watch Negative), supporting a higher, multi-
notch rating. MIC's leverage is moderately higher than Empresa de
Telecomunicaciones de Bogota, S.A. E.S.P. (ETB; BB+/Stable) but
benefits from a stronger business profile that has leading market
positions in multiple markets. MIC also has a stronger capital
structure and business profile than Colombia Telecomunicaciones,
S.A. E.S.P. (BB/Stable), an integrated telecom operator, and Axtel
S.A.B. de C.  (BB-/Stable), a Mexican fixed-line operator.

KEY ASSUMPTIONS

  -- Low-single-digit annual revenue growth in the medium term;

  -- Cable Onda to represent 7% of consolidated EBITDA;

  -- Mobile service revenue contraction to be offset by increasing
     mobile data revenues over the medium term;

  -- Revenue contribution from mobile data and home service
     operations to grow toward 55% of total revenues by 2020;

  -- Home service segment to undergo double-digits revenue growth
     in the short-to-medium term;

  -- Annual capex, including spectrum, of USD1.1 billion over the
     medium term;

  -- No significant increase in shareholder distributions in the
     short to medium term with annual dividend payments remaining
     at USD265 million.

RATING SENSITIVITIES

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

  -- Improvement in the adjusted consolidated net leverage of 2.0x
     and continued on a sustained basis;

  -- Increased diversification of dividends flow/consistent and
     stable dividends from countries with investment-grade
     ratings;

  -- Positive rating action on sovereign countries that contribute
     significant dividend flow.

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

  -- Adjusted consolidated net leverage consistently above 3.0x;

  -- Sustained negative FCF generation due to
     competitive/regulatory pressures or aggressive shareholder
     distributions.

LIQUIDITY AND DEBT STRUCTURE

Sound Liquidity Profile: Millicom benefits from a good liquidity
position, given the company's large cash position which fully
covers short-term debt.  As of June 30, 2018, the consolidated
group's readily available cash was USD1.081 billion, which
comfortably covers its short-term debt obligations of USD439
million. Fitch expects the company to finance the acquisition of
Cable Onda with existing cash and new debt. The company has a
five-year undrawn revolving credit facility for USD600 million
until 2022, which further bolsters its liquidity position. Fitch
does not foresee any liquidity problem for both the operating
companies and the holding company given the operating companies'
stable cash generation and consistent cash upstreaming to the
holding company. MIC has a good record, in terms of access to
capital markets when in need of external financing, supporting
liquidity management.



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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: Unaware of Potential of Mining Assets
---------------------------------------------------------
Dominican Today reports that Energy and Mines Minister Antonio Isa
Conde called the Dominican Republic "a beggar sitting on a large
gold mine."

He said the country isn't aware that the abundant resources under
its feet can break its chain of poverty and raise its quality of
life, according to Dominican Today.

He defended the sustainable extraction of metals, non-metals and
hydrocarbons as long as it has the least possible impact on the
environment and ensuring the fair distribution of wealth for the
communities, the report relays.

"The possibilities that this country has in mining development are
quite great and not only in metal mining, but in hydrocarbons, oil
and gas," the report quoted Mr. Conde as saying.

"If Dominican Republic's current capabilities in metallic mining
were to be developed the results in terms of exports and govt.
income could double in a relatively short time," he added.

He added that the steps being taken with hydrocarbons are
impressive, the report notes.  "We are at the door of the
responsible and sustainable development of the exploration and
exploitation of oil and gas, which means wealth," he added.

As reported in the Troubled Company Reporter-Latin America on
Sept. 24, 2018, Fitch Ratings affirmed Dominican Republic's
Long-Term, Foreign-Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Outlook.


DOMINICAN REPUBLIC: Jump in Fuels, Dollar Push Staples Up to 30%
----------------------------------------------------------------
Dominican Today reports that the jump in fuel prices and the
dollar's rate are pushing the cost of several household staples as
high as 30 percent.

Plantains jumped from 10 to as much as 15 pesos while other
products such as onions, pigeon peas and potatoes have also posted
increases, according to Dominican Today.

Outlet El Dia reports that eddoes in the market at San Cristobal
(south) jumped to RD$50.00 per pound while carrots and cassava
(yuca) rose four pesos to as high as RD$20.00 per pound, the
report relays.

Juan Hernandez, a market seller complained that fruits and
vegetables are becoming more expensive every week, the report
says.  He said that as long as fuel prices continue to rise, so
will staples, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Sept. 24, 2018, Fitch Ratings affirmed Dominican Republic's
Long-Term, Foreign-Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Outlook.



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


JAMAICA: TAJ Surpasses Collection Target for Second Quarter
-----------------------------------------------------------
RJR News reports that preliminary figures indicate that Tax
Administration Jamaica (TAJ) surpassed collections target for the
second quarter of the current fiscal year.

For the period July to September, TAJ raked in $75.2 billion,
which was 4.8 per cent over the $71.7 billion target, according to
RJR News reports.

As a result, year-to-date collections are now at $153.1 billion,
the report notes.

This is two per cent above the projections at September 30 of
$149.8 billion, the report relays.

The report discloses that TAJ is now on track to exceed the
320-point-8 billion dollar annual target.

Tax Administration Jamaica says the higher than projected
collections resulted from continued focus on compliance
strategies, which began in the last financial year, the report
relays.

These include closer monitoring of arrears, which was facilitated
through the Revenue Administration Information System and the
mandating of all GCT taxpayers to file their returns online, the
report relays.

TAJ is also reporting a near 100 per cent GCT e-Filing compliance
rate for taxpayers mandated to file returns in this manner, the
report notes.

In addition, TAJ says it will continue to aggressively pursue tax
evaders through intelligence and enforcement actions, the report
discloses.

It says its Special Enforcement Team recently targeted several
delinquent taxpayers in St. Catherine and carried out an operation
dubbed 'Old Capital 2.0', which resulted in the arrest of ten
persons for disobeying Court Orders, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Sept. 27, 2018, S&P Global Ratings revised its outlook on
Jamaica to positive from stable. At the same time, S&P Global
Ratings affirmed its 'B' long- and short-term foreign and local
currency sovereign credit ratings, and its 'B+' transfer and
convertibility assessment on the country.



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M E X I C O
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ALPHA HOLDING: S&P Affirms 'B-' Global Scale Issuer Credit Rating
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' long-term global scale issuer
credit rating (ICR) on Alpha Holding S.A. de C.V. The outlook
remains stable. S&P also affirmed its 'B+' issue-level rating on
the company's $300 million senior secured notes. The notes are
guaranteed by all of its operating subsidiaries.

The ratings on Alpha Holding reflect its status as a non-operating
holding company (NOHC). S&P said, "We deduct two notches from its
consolidated operating entities' creditworthiness -- also known as
the group credit profile (GCP; 'b+') -- because the company
depends on dividends its subsidiaries upstream to service debt at
the holding level, and because of the expected high double
leverage -- we estimate this at around 140%-145%. We believe that
the company has sufficient cash flow to cover its financial
obligations in the 12 months, even in our stress scenario.  The
unconditionally and irrevocably guarantee by all of the company's
operating subsidiaries support the rating on the notes.
Consequently, the rating on the notes represents our view of the
consolidated group's creditworthiness."

S&P said, "Our consolidated analysis reflects Alpha Holding's
business position assessment, which is underpinned by its
consolidated market presence in the Mexican payroll discount
lending sector. It further reflects expected business stability
(reflected in growing operating revenues and business volumes) and
increasing business diversification. The ratings also incorporate
the firm's low quality of capital, stemming from the large amount
of intangibles generated from its previous acquisitions. Although
our forecasted RAC ratio is barely 1.5% by year-end 2020, which we
consider a main weakness of the rating, we believe that the
company's ability to absorb unexpected losses is higher than the
RAC ratio suggests. Therefore, in this holistic analysis, we view
its risk position as better than other nonbank financial
institutions (NBFIs) we rate in Latin America because of its
manageable asset quality metrics. Finally, our funding and
liquidity assessments account for the company's diversified
funding structure and its sufficient liquidity levels, even in our
stress scenario, that support its financial obligations and daily
operations. The GCP is 'b+'.

"Our 'bb+' anchor for NBFIs operating in Mexico is two notches
lower than the bank anchor. In our view, Mexican fincos benefit
from government-owned development banks, which represent a stable
funding source for this sector even during market uncertainties,
like what occurred during the 2008-2009 global financial crisis.
Moreover, through these development banks, the government has a
record of support to fincos through guarantees and liquidity
facilities during periods of market stress. The anchor for Alpha
Holding and its main operating subsidiaries is equal to that on
Mexican fincos because we do not make entity-specific adjustments
to it."



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P E R U
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NAUTILUS INKIA: Fitch Alters Outlook on BB IDRs to Negative
-----------------------------------------------------------
Fitch Ratings has affirmed Nautilus Inkia Holdings LLC's Foreign-
Currency and Local-Currency Issuer Default Ratings at 'BB' and
revised the Rating Outlooks to Negative from Stable. The rating on
the senior unsecured notes is also affirmed at 'BB'. The ratings
actions follow Inkia's announcement that it has purchased Energia
del Pacifico S.A.'s 25% stake in Kallpa Generacion SA (BBB-
/Stable) for USD342 million.

The Outlook revision reflects Fitch's view that the funding
strategy for this acquisition could have potentially negative
medium-term consequences for the company's capital structure.
Although Fitch estimates the acquisition will reduce cash leakage
by approximately USD30 million per year, funding the acquisition
with a USD200 million bridge loan increases leverage at a time
when the company's capital structure remains weak within its
rating category. The balance of the acquisition is being funded
with a USD100 million capital injection and available cash on
hand.

KEY RATING DRIVERS

Incremental Debt to Increase Dividends: Fitch negatively views the
company's prioritization of improving near-term dividend flows
over capitalizing on deleveraging opportunities. Fitch's rating of
Inkia had previously incorporated the expectation of a shareholder
strategy that would emphasize long-term value growth over short-
term returns. The decision to fund this acquisition with USD200
million of additional debt indicates a less conservative business
strategy than anticipated. Inkia was previously on a Negative
Rating Outlook from 2014-2016, largely due to the aggressive
strategy of its former shareholder, whose family-owned
organizational structure and disconnected portfolio of assets had
resulted in significant and unexpected cash outflows from Inkia at
a time when its financial profile was weak.

Tight Financial Metrics: Weaker than expected historical results
at the Energuate level have led to Fitch's taking a more
conservative view of the operating environment in Guatemala until
the next tariff period is established and the company has been
able to make sustained progress on its strategic goals of reducing
energy losses and improving collection rates. As a result, Inkia's
consolidated financial profile shows a substantially shallower
deleveraging trajectory than previously anticipated, placing it at
the boundaries of Fitch's sensitivities for the 'BB' rating. Small
variations in cash flow could be sufficient to result in a rating
change if accompanied by even modest underperformance relative to
Fitch's base case.

Debt Structurally Subordinated: Inkia's debt is structurally
subordinated to debt at the operating companies. Total debt at the
subsidiary level amounted to approximately USD2.1 billion, or 78%
of total consolidated adjusted debt as of December 2017. The bulk
of this debt was represented by bonds taken out to replace bank
debt related to the company's projects and acquisitions. Although,
Inkia's HoldCo debt remains structurally subordinated to OpCo
debt, the refinancing of nearly USD1 billion of project debt at
the subsidiary level with international bonds in 2017 has
effectively eliminated onerous cash trapping mechanisms that could
negatively affect cashflow predictability to the HoldCo. Inkia's
cash flow depends on dividends received from subsidiaries and
associated companies, of which it received USD255 million in 2017.

Positive Reversal in FCF Trend: FCF has been negative in the last
four years due to aggressive capex. Total investments for Inkia's
two largest power generation projects in Peru accounted for USD1.3
billion. Cerro del Aguila's (CdA) capex was USD975 million (61%
debt funded) and USD377 million was invested in Samay I (82% debt
funded). A material reduction in consolidated capex occurred in
2017 that resulted in positive cash flow before dividends. Inkia
has indicated its intention to increase investment in its
Guatemalan DisCos and to improve their technological and
operational efficiency. The improving FCF trend should continue in
the medium term, supported by the full-year operations of CdA's
hydroelectric plant and Inkia's 632MW cold-reserve thermal plant,
Samay I, which will receive fixed capacity payments for 18 years.
Going forward, Fitch does not expect Inkia to maintain cash above
USD100 million, with excess funds after debt service and capex to
be paid out to Inkia's shareholder, I Squared Capital.

Geographic and Business Diversification: The company is focused on
diversifying its energy asset base in Latin American markets,
where overall and per capita energy consumption has a higher
potential for growth compared with developed markets. Inkia
adopted an aggressive plant expansion strategy during the last
four years, while the Energuate acquisition provided further
geographic and business diversification in Guatemala and in the
electricity distribution sector. Energuate's EBITDA is expected to
be USD91 million in 2018. Under Fitch's forecast, operations in
Peru (BBB+), which include Kallpa and Samay, should account for
62% of 2018 consolidated EBITDA, followed by Guatemala with 18%
(BB). The remaining EBITDA (20%) should arise from assets located
mainly in Panama (BBB), Bolivia (BB), Chile (A+), the Dominican
Republic (B+), El Salvador (B+) and Nicaragua (B+).

DERIVATION SUMMARY

Locally, Inkia has limited peers, given its overall size and asset
diversification. In Peru, Fitch also rates Orazul Energy Egenor S.
en C. por A (BB/Stable) and Fenix Power Peru S.A. (BBB-/Stable).
Orazul is expected to maintain gross leverage of above 5.0x
through the rating horizon. Although lacking Inkia's geographical
diversification, Orazul benefits from asset mix locally similar to
Inkia's subsidiary Kallpa Generacion S.A. (BBB-/Stable), with both
thermal and hydroelectric generation, albeit on a smaller scale.
Orazul's high, medium-term leverage above 5.0x under Fitch's
forecast places it at the high end of its rating level, compared
with a deleveraging trajectory for Inkia that should take it to
around 4.5x within the rating horizon. As a single-asset generator
with a high proportion of take-or-pay costs, Fenix's capital
structure is more in line with a BB risk profile, but it is buoyed
by its strong shareholder support from Colbun S.A. (BBB/Stable).

Inkia presents a generally weaker capital structure relative to
its large, multi-asset energy peers in the region. Its nearest
peer in this group is the Chilean generator, AES Gener (BBB-
/Negative Watch), which is also in the midst of a deleveraging
period. Prior to an announcement regarding delays and difficulties
surrounding the construction of AES Gener's Alto Maipo plant,
Fitch forecast deleveraging from around 5x to below 4x over the
next three years. This put the company at the upper limits of its
rating category. Following the announcement, Fitch placed AES
Gener on Negative Watch.

Colbun S.A. and Engie Energia Chile S.A. (BBB/Stable) also compare
favorably with Inkia, with leverage consistently at or below 3.0x,
comfortably within the investment-grade rating category.

KEY ASSUMPTIONS

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

  - Kallpa (thermal): Southern Copper PPA fully recognized in
    2018, GDP-linked demand growth;

  - CdA (hydro): About 400 MW of contracted capacity beginning in
    2018; less than 1,000 GWh of spot sales annually;

  - Samay (cold-reserve): No Southern Gas Pipeline through rating
    horizon; load factor below 5%, fully passed through. Capacity
    payments annually adjusted by PPI;

  - Peru: average energy spot price of $12/MWh until 2021;

  - Agua Clara construction in 2018-2019, with full-year
    operations in 2020;

  - About USD500 million in capex over next four years;

  - Excess cash over USD90 million-USD100 million paid as
    dividends (about USD460 million over four years).

RATING SENSITIVITIES

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

  - A positive resolution to the Negative Rating Outlook could be
    considered as a result of accelerated debt reduction together
    with consistently conservative cashflow management.

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

  - A negative rating action could be triggered by a combination
    of the following: Consolidated gross leverage remains above
    4.5x through the rating horizon following additional
    investment opportunities undertaken without an adequate amount
    of additional equity; reduction in cash flow generation due to
    adverse regulatory issues, deterioration of its contractual
    position, and/or deteriorating operating conditions for the
    DisCo business; aggressive dividend policy; and/or Inkia's
    asset portfolio becomes more concentrated in countries with
    high political and economic risk.

LIQUIDITY

Inkia's liquidity primarily relies on cash on hand and readily
monetizable assets of USD360 million as of year-end 2017. The
company has historically benefitted from access to local capital
markets to finance investment projects at the subsidiary level. In
2017, two of its subsidiaries replaced nearly USD1 billion in
aggregate of syndicated loans with international bonds. In April,
Energuate Trust (BB/Stable) issued USD330 million to replace
existing debt as well as a bridge loan of USD120 million used to
fund Inkia's 2016 acquisition of the Guatemalan DisCos. In early
August, Kallpa replaced the syndicated bank facility used during
its hydroelectric plant's construction phase with a USD650 million
international bond. Fitch estimates that over 90% of Inkia's
consolidate debt is scheduled to mature after 2020, including
Inkia's USD600 million bond. Fitch does not expect the company to
maintain cash above USD100, with excess funds paid out to Inkia's
shareholder, I Squared Capital.

FULL LIST OF RATING ACTIONS

Fitch has affirmed the following ratings:

Nautilus Inkia Holdings LLC

  - Long-Term, Foreign-Currency Issuer Default Rating at 'BB';

  - Long-Term, Local-Currency Issuer Default Rating at 'BB';

  - Senior unsecured debt rating at 'BB'.

The Rating Outlook is revised to Negative from Stable.



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


UNIVERSAL HEALTH: Moody's Rates $3.5-Bil. Credit Facilities 'Ba1'
-----------------------------------------------------------------
Moody's Investors Service assigned Ba1 ratings to Universal Health
Services, Inc.'s new $3.5 billion credit facility, including a
revolving credit facility, term loan A and term loan B. Proceeds
from the new term loans will be used to repay existing debt. The
transaction is expected to be leverage neutral.

Universal's remaining existing ratings, including the company's
Ba1 Corporate Family Rating and Ba1-PD Probability of Default
Rating, are unchanged. The rating outlook remains stable.

Following is a summary of Moody's rating actions.

Ratings assigned:

  $1 billion senior secured revolving credit facility, at Ba1
  (LGD3)

  $2 billion senior secured term loan A at Ba1 (LGD3)

  $500 million senior secured term loan B at Ba1 (LGD3)

RATINGS RATIONALE

Universal Health Services' credit profile reflects Moody's
expectation that it will continue to maintain low financial
leverage, with adjusted debt/EBITDA of around 2.5x, solid interest
coverage and good free cash flow relative to debt. Its credit
profile is also supported by UHS's considerable scale and strong
market positions in both its acute care hospital and behavioral
health segments. While UHS has some geographic concentration in
its acute care business, the behavioral health business -- which
has a national footprint -- affords the company good business and
geographic diversification as a whole. UHS's credit profile is
constrained by reputational and financial risk associated with the
on-going investigations into billing and business practices at
some of the company's behavioral health facilities. Further, its
credit profile is constrained by general industry-wide hospital
challenges, including rising wages and costs and reimbursement
pressures.

If UHS resolves the vast majority of its outstanding litigation
and investigation items and maintains conservative financial
policies and a disciplined approach to capital deployment, Moody's
could upgrade the ratings. Specifically, if Moody's expects UHS to
sustain debt/EBITDA below 2.5 times, there could be upward rating
pressure.

The ratings could be downgraded if the company engages in
significant debt financed acquisitions or cash payouts to
shareholders, or if credit metrics materially worsen for any
reason. More specifically, the ratings could be downgraded if
Moody's expects debt/EBITDA to be sustained above 3.0 times.
Further, a significant escalation of legal liabilities or
government investigations could also put downward pressure on the
ratings.

Universal Health Services, Inc. based in Prussia, Pennsylvania,
owned and operated 26 acute care hospitals and 300 inpatient and
32 outpatient behavioral health centers as of June 30, 2018.
Facilities are located in 37 states, Washington, D.C., the United
Kingdom, and Puerto Rico. Revenues are approximately $10.5
billion.



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


PETROLEOS DE VENEZUELA: Preparing $950MM Payment on 2020 Bond
-----------------------------------------------------------
Corina Pons and Deisy Buitrago at Reuters report that Venezuela's
state-owned oil company Petroleos de Venezuela S.A. (PDVSA) is
preparing to pay holders of its 2020 bond some $950 million this
month, after failing to make interest payments on most other bonds
this year, sources at the company and in the local financial
sector said.

PDVSA has fallen behind on more than $7 billion in principal and
interest payments since the end of 2017, according to market
sources and Refinitiv data, as an economic crisis in Venezuela has
worsened, according to Reuters.

But cash-strapped PDVSA has stayed current on the 2020 issue,
which is backed by 50.1 percent of shares in U.S. refining network
Citgo, the report notes.

"Quevedo gave his approval to arrange this payment," said one
person at PDVSA familiar with the plans, referring to Manuel
Quevedo, Venezuela's oil minister who is also president of PDVSA.
"It will be paid in full," the report relays.

Another source at PDVSA and three sources in Venezuela's financial
industry confirmed that the company plans to pay. The sources
spoke and requested anonymity because they were not authorized to
speak publicly, the report notes.

The report says that PDVSA must pay $840 million by Oct. 27 to
cover an amortization payment on the bond, and then has 30 more
days to make a $107 million interest payment.

"PDVSA has been making payments on the 2020 bond and they tell us
they plan to keep doing so," said one local financial operator who
has spoken with the company about the plans, the report discloses.

To be sure, this year PDVSA has made payments only on its 2020 and
2022 bonds, prompting ratings agencies to declare the company and
Venezuela's government in selective default, the report relays.
The drop in crude prices that began in 2014 and an ensuing decline
in production have reduced the OPEC nation's government revenue,
the report notes.

Investors believe PDVSA will prioritize the 2020 bond because of
the potential implications for Citgo, the report discloses.  The
remaining shares in the refiner are already pledged to Russia's
Rosneft as collateral on a $1.5 billion loan, the report says.

And it is also under threat from Canadian miner Crystallex, which
has won a judge's authorization to seize Citgo shares to collect
on a $1.4 billion award stemming from a decade-long
nationalization dispute, the report notes.

"PDVSA has demonstrated via its legal efforts a strong preference
to maintain ownership of Citgo," JP Morgan wrote in a note to
clients, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Aug. 24, 2018, S&P Global Ratings affirmed its 'SD' global scale
issuer credit rating and 'D' issue-level ratings on Petroleos de
Venezuela S.A. (PDVSA).


                            ***********


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.
.


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