/raid1/www/Hosts/bankrupt/TCRLA_Public/181106.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, November 6, 2018, Vol. 19, No. 220


                            Headlines



A R G E N T I N A

BANCO SUPERVIELLE: Moody's Affirms B2 Sr. Unsec. Debt Rating
BANCO SUPERVIELLE: Moody's Affirms B2 Dep. Rating, Outlook Stable


B R A Z I L

BRAZIL: Post-election, Firms Move to Sell Shares, Refinance Debt
COMPANHIA ENERGETICA: Moody's Hikes CFR to B1, Outlook Stable
RIO GRANDE MUNICIPALITY: Moody's Withdraws B2 LT Issuer Rating
STATKRAFT ENERGIAS: Moody's Affirms Ba3 CFR, Outlook Stable


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: China-DR Deal Long On Text, Short On Substance
DOMINICAN REPUBLIC: US Envoy Again Urges Caution on Dominican Ties


M E X I C O

ARMOUR SECURE: A.M. Best Affirms B (Fair) Fin'l. Strength Rating


P A R A G U A Y

PARAGUAY: To Get $130MM IDB Loan to Improve Public Services


P U E R T O    R I C O

FERMARALIZ CORP: Case Summary & 2 Unsecured Creditors
LA CANASTA: Case Summary & 15 Unsecured Creditors
POLICLINICA FAMILIAR: Plan Outline Okayed, Plan Hearing on Dec. 11


T R I N I D A D  &  T O B A G O

PETROLEUM CO: Begins Importing Fuels


                            - - - - -



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


BANCO SUPERVIELLE: Moody's Affirms B2 Sr. Unsec. Debt Rating
------------------------------------------------------------
Moody's Investors Service has affirmed Banco Supervielle S.A.'s B2
foreign currency senior unsecured debt rating. The outlook on
Supervielle's ratings remains stable. This action followed the
announcement made by Moody's Latin America Agente de Calificacion
de Riesgo S.A. that it has taken a similar action on the banks'
local currency deposit ratings.

The following ratings and assessments assigned to Banco
Supervielle S.A. were affirmed:

  - Global scale, long-term foreign currency senior unsecured debt
rating affirmed at B2, stable outlook

RATINGS RATIONALE

The ratings affirmation reflects Moody's view that, in spite of
recent deterioration of Supervielle's profitability, capital and
asset quality, its ratings are still constrained by the B2
Argentine sovereign bond rating and remain appropriately
positioned.

Supervielle's profitability has fallen significantly as of June
2018, with an annualized net income to tangible assets ratio of
0.8%, down from 1.6% in 2017 and 1.8% in 2016. The deterioration
was driven by the combination of: i) a sharp increase in funding
costs driven by the increase in local interest rates; ii) higher
credit costs; and iii) trading losses due to the bank's short
foreign currency position in the second quarter, when the local
currency depreciated sharply. Nevertheless, Moody's expects the
bank's profitability to stabilize as the bank continues to reprice
its loan portfolio in line with higher interest rates. Effective
annual yields of more than 100% on the bank's holdings of central
bank securities will also support earnings. Moreover, the bank's
foreign currency position is now balanced, which will insulate it
from further depreciation of the peso.

The rise in credit costs was driven by an increase in
delinquencies to 3.5% of gross loans in June from 2.9% as of 2017
year-end, led by Supervielle's consumer finance loan portfolio.
This in turn was likely the result of the bank's very rapid loan
growth in 2017 and 1Q18. However, loan growth has since slowed
sharply, which should help contain further increases in asset risk
despite the deteriorating operating environment.

The bank's capital has also been consumed at a faster pace than
previously expected, as the depreciation of the local currency has
led to a sharp increase in the peso value of foreign currency
loans, and therefore in risk-weighted assets. Consequently, the
bank's tangible common equity to risk weighted assets ratio
decreased to 9.2% as of June from 10.8% as of 2017 year-end, and
Moody's expects it to have fallen even lower in the third quarter.
At Grupo Supervielle level, capital has also been consumed by the
acquisitions of Microlending S.A. and Invertironline S.A. earlier
this year. However, the holdco still has around $50 million in
liquid assets remaining from the $342 million follow-on equity
offering it undertook in September 2017, which if injected into
the bank would at least partially offset the reduction in its
capital metrics.

The bank's funding and liquidity profile have remained relatively
stable so far through the crisis, and Moody's expects this trend
to continue in the coming quarters. Liquid assets actually rose to
30% of total assets as of June 2018 from 23% as of March 2018 as
growth in deposits of 37% outstripped loan growth of 12%. Moody's
expects Supervielle to maintain or even increase its liquidity
levels, driven by increasing minimum reserve requirements imposed
by the Argentine Central Bank since the crisis began, a sharp
reduction in loan growth, and attractive yields on highly-liquid
central bank securities. In addition, the bank's reliance on
market funds remains moderate, with a total market funds to
tangible banking assets ratio of 19.3% as of 2018 (roughly half of
which is maturing in the next twelve months) and total cross-
border debt equal to just 4.3% of tangible banking assets,
limiting its vulnerability to the effective closure of Argentina's
capital markets. However, deposit growth has been mainly driven by
interest-bearing checking accounts and wholesale term deposits,
which now account for roughly half of total deposits, are more
confidence-sensitive than savings deposits, and increase the
banks' overall cost of funding.

WHAT COULD CHANGE THE RATING -- UP OR DOWN

Supervielle's ratings could face downward pressure if the
operating environment deteriorates further and/or the Argentine
sovereign rating were downgraded. The ratings could also face
downward pressure if the bank's asset quality, capitalization, or
earnings deteriorate sharply, or if the bank's deposit funding
falls suddenly.

As Supervielle's rating are effectively constrained by the
Argentine sovereign's B2 rating due to the strong credit
interlinkages between the sovereign and the bank, an upgrade of
the sovereign rating accompanied by an improvement in operating
conditions could put positive pressures on the global scale
ratings.

The principal methodology used in this rating was Banks published
in August 2018.


BANCO SUPERVIELLE: Moody's Affirms B2 Dep. Rating, Outlook Stable
-----------------------------------------------------------------
Moody's Latin America has changed the outlook on the national
scale ratings of Banco Supervielle S.A. and Grupo Supervielle S.A.
to stable from positive. At the same time, Moody's has affirmed
all ratings and assessments of both entities. The outlook on both
entities' global scale ratings remains stable.

The following ratings and assessments assigned to Banco
Supervielle S.A. were affirmed:

  - Global scale, long-term local currency deposit rating affirmed
at B2, stable outlook

  - Global scale, short-term local currency deposit rating
affirmed at Not Prime

  - Global scale, long-term foreign currency deposit rating
affirmed at B3, stable outlook

  - Global scale, short-term foreign currency deposit rating
affirmed at Not Prime

  - Global scale, long-term counterparty risk assessment affirmed
at B1(cr)

  - Global scale, short-term counterparty risk assessment affirmed
at Not Prime(cr)

  - Argentine national scale local currency deposit rating
affirmed at A2.ar, outlook changed to stable from positive

  - Argentine national scale foreign currency deposit rating
affirmed at Baa1.ar, stable outlook

  - Adjusted baseline credit assessment affirmed at b2

  - Baseline credit assessment affirmed at b2

Outlook, Stable

The following ratings and assessments assigned to Grupo
Supervielle S.A. were affirmed:

  - Global scale, long-term local and foreign currency issuer
rating affirmed at B3, stable outlook

  - Global scale, long-term local currency senior unsecured debt
rating affirmed at B3, stable outlook

  - Argentine national scale local and foreign currency issuer
rating affirmed at Baa2.ar, outlook changed to stable from
positive

  - Argentine national scale local currency senior unsecured debt
rating affirmed at Baa2.ar, outlook changed to stable from
positive

Outlook, Stable

RATINGS RATIONALE

The change in outlook on the national scale ratings reflects the
recent deterioration of Supervielle's profitability, capital, and
asset quality. The global scale ratings and assessments were
nevertheless affirmed with a stable outlook as they remain
constrained by the B2 Argentine sovereign bond rating, while the
affirmation of the national scale ratings reflects that, despite
the deterioration, the bank's credit profile remains stronger than
that of peers rated A3.ar on the national scale. The long-term
global-scale ratings of Grupo Supervielle (the bank's holding
company) continue to be positioned one notch below the bank's
ratings, reflecting Moody's view that the holding company's debt
is structurally subordinated to the debt at the bank subsidiary.

Supervielle's profitability has fallen significantly as of June
2018, with an annualized net income to tangible assets ratio of
0.8%, down from 1.6% in 2017 and 1.8% in 2016. The deterioration
was driven by the combination of: i) a sharp increase in funding
costs driven by the increase in local interest rates; ii) higher
credit costs; and iii) trading losses due to the bank's short
foreign currency position in the second quarter, when the local
currency depreciated sharply. Nevertheless, Moody's expects the
bank's profitability to stabilize as the bank continues to reprice
its loan portfolio in line with higher interest rates. Effective
annual yields of more than 100% on the bank's holdings of central
bank securities will also support earnings. Moreover, the bank's
foreign currency position is now balanced, which will insulate it
from further depreciation of the peso.

The rise in credit costs was driven by an increase in
delinquencies to 3.5% of gross loans in June from 2.9% as of 2017
year-end, led by Supervielle's consumer finance loan portfolio.
This in turn was likely the result of the bank's very rapid loan
growth in 2017 and 1Q18. However, loan growth has since slowed
sharply, which should help contain further increases in asset risk
despite the deteriorating operating environment.

The bank's capital has also been consumed at a faster pace than
previously expected, as the depreciation of the local currency has
led to a sharp increase in the peso value of foreign currency
loans, and therefore in risk-weighted assets. Consequently, the
bank's tangible common equity to risk weighted assets ratio
decreased to 9.2% as of June from 10.8% as of 2017 year-end, and
Moody's expects it to have fallen even lower in the third quarter.
At Grupo Supervielle level, capital has also been consumed by the
acquisitions of Micro Lending S.A. and Invertironline S.A. earlier
this year. However, the holdco still has around $50 million in
liquid assets remaining from the $342 million follow-on equity
offering it undertook in September 2017, which if injected into
the bank would at least partially offset the reduction in its
capital metrics.

The bank's funding and liquidity profile have remained relatively
stable so far through the crisis, and Moody's expects this trend
to continue in the coming quarters. Liquid assets actually rose to
30% of total assets as of June 2018 from 23% as of March 2018 as
growth in deposits of 37% outstripped loan growth of 12%. Moody's
expects Supervielle to maintain or even increase its liquidity
levels, driven by increasing minimum reserve requirements imposed
by the Argentine Central Bank since the crisis began, a sharp
reduction in loan growth, and attractive yields on highly-liquid
central bank securities. In addition, the bank's reliance on
market funds remains moderate, with a total market funds to
tangible banking assets ratio of 19.3% as of 2018 (roughly half of
which is maturing in the next twelve months) and total cross-
border debt equal to just 4.3% of tangible banking assets,
limiting its vulnerability to the effective closure of Argentina's
capital markets. However, deposit growth has been mainly driven by
interest-bearing checking accounts and wholesale term deposits,
which now account for roughly half of total deposits, are more
confidence-sensitive than savings deposits, and increase the
banks' overall cost of funding.

WHAT COULD CHANGE THE RATING -- UP OR DOWN

Supervielle's global scale ratings could face downward pressure if
the operating environment deteriorates further and/or the
Argentine sovereign rating were downgraded. The national scale
ratings could face downward pressure, if the bank's asset quality
or capitalization deteriorate more than peers, if deposit funding
falls suddenly, or if earnings do not rebound to prior levels.
Should the deterioration of the bank's fundamentals be severe, the
global scale ratings could potentially face downward pressure even
in the absence of a further deterioration of the operating
environment or a sovereign downgrade.

As Supervielle's rating are effectively constrained by the
Argentine sovereign's B2 rating due to the strong credit
interlinkages between the sovereign and the bank, an upgrade of
the sovereign rating accompanied by an improvement in operating
conditions could put positive pressures on the global scale
ratings. The national scale ratings could again face upward
pressure if the bank's asset quality, capitalization, and
profitability recover to recent levels.

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


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


BRAZIL: Post-election, Firms Move to Sell Shares, Refinance Debt
----------------------------------------------------------------
Tatiana Bautzer and Carolina Mandl at Reuters reports that
Brazilian companies are again looking to raise capital by selling
shares or refinancing debt as the pre-election uncertainty that
put such deal making into a deep freeze gives way to optimism
after the selection of market-friendly candidate Jair Bolsonaro as
president, five people familiar with the matter said.

One of the sources, who asked for anonymity to disclose details of
private negotiations, said that up to 10 companies are in talks
with investment bankers to sell shares and five other companies
are planning bond transactions by January, according to Reuters.

"Banks are advising companies to access capital markets by year-
end or in the first quarter of 2019, during investors' honeymoon
with Bolsonaro's commitment to market-friendly policies," the
source added, the report relays.  "It is hard to say how long it
will last," he added.

Reuters notes that the signs of a post-election capital markets
revival underline the role that political risk and uncertainty
play in investors' decisions about corporate debt and equity in
Brazil, Latin America's largest economy.

Some of the shares offerings planned for the next months were
already in the pipeline, but they had to be suspended because of
pre-election volatility, the report relays.

Among companies planning initial public offerings by year-end are
medium-sized bank Banco BMG SA and information technology company
Tivit Terceirizacao de Processos, Servicos e Tecnologia SA, the
report notes.

Power holding company Neoenergia SA, controlled by Spain's
Iberdrola SA, may also attempt an IPO in the first quarter, two of
the unnamed sources said, the report discloses.  Neoenergia's
offering has been suspended twice over the last two years because
shareholders could not obtain the valuation they desired, the
report says.

Electricity distributor Light SA (LIGT3.SA), already listed,
unveiled plans for a share offering, the report says.

Last year, 34 companies raised $12.8 billion with equity
offerings, according to Refinitiv data, the report notes.  So far
this year, the amount raised has been just half that -- $6.3
billion in 14 offerings, the report discloses.

Post-election, a wider number of Brazilian listed companies could
profit from improved market conditions to raise capital, the
report relays.

The unnamed sources said energy companies such as Equatorial
Energia SA (EQTL3.SA) and Energisa SA (ENGI11.SA), which need
capital to fund acquisitions and bid in government auctions, could
sell additional shares, the report relays.  Energisa and
Equatorial did not comment on the matter.

                        Debt Refinancing

Corporate debt could also see a revival thanks to Bolsonaro's
victory, the report notes.

Issuance of Brazilian bonds, including sovereign instruments,
totaled $17 billion this year in international markets, down 53
percent from the same period one year earlier, the report says.

Over the last month, as Bolsonaro became front-runner and was
elected president, yields on Brazil's sovereign five-year credit
default swaps (CDS) fell 21 percent, the report notes.  Spread
closed at 197.9 basis points on Nov. 1, according to Refinitiv
data.

A CDS is a financial derivative that effectively functions as
insurance against non-payment of bonds and other credit
instruments, the report relays.  Brazilian sovereign spread over
Treasury yields closed at 228 basis points on Nov. 1, the report
says.

The unnamed sources say Brazil's largest bond issuers are expected
to take the opportunity to refinance debt on cheaper terms, the
report relays.

The first company to offer bonds after the election may be
infrastructure holding Invepar SA, which is expected to sell $650
million in bonds as soon as this week, the report relays.  Invepar
has delayed its offering from October to this month and is still
in negotiations with investors, which demanded yields of up to 10
percent, the report notes.

Invepar did not immediately comment on the matter.

Brazil's state-owned oil company, Petroleo Brasileiro SA
(PETR4.SA) has refinanced $1 billion in bank loans at lower costs,
the report notes.

So far, Petrobras, as the company is known, has not announced any
new bond issues, the report says.

Another company reducing debt cost is miner Vale SA (VALE3.SA),
bankers said, the report discloses.  Vale Chief Financial Officer
Luciano Siani said in an interview the company has reached its net
debt target ahead of schedule, the report relays.  The company is
cautious about new debt because of rising benchmark interest rates
in the United States, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Oct. 18, 2018, Egan-Jones Ratings Company, on October 8, 2018,
withdrew its 'B+' foreign currency and local currency senior
unsecured ratings on debt issued by the Federative Republic of
Brazil.


COMPANHIA ENERGETICA: Moody's Hikes CFR to B1, Outlook Stable
-------------------------------------------------------------
Moody's America Latina has upgraded the corporate family ratings
of Companhia Energetica de Minas Gerais - CEMIG to B1/Baa2.br from
B2/Ba1.br respectively in global and national scale, concluding
the review for upgrade that was initiated in September 06 2018.
The ratings upgrade reflects Moody's updated views on CEMIG's
baseline credit assessment and upgrade to b1 from b2.
Concomitantly, Moody's upgraded the global and national scale
issuer, senior unsecured, and senior secured ratings assigned to
Cemig Distribuicao S.A. and Cemig Geracao e Transmissao S.A. to
B1/Baa2.br from B2/Ba1.br. The outlook is stable.

CEMIG is a government related issuer. The state of Minas Gerais
(B2 stable) is the shareholder with majority control, with 50.97%
ownership of voting shares and 17.08% of overall shares. Moody's
has reviewed its subfactor scores related to (i) probability of
the government providing extraordinary support to low from
moderate given overall deterioration of the state's fiscal
conditions as well as increased potential for privatization
following the election of Mr. Romeu Zema of the 'Novo Party' to
Governor as of January 2019; and the level of dependence to very
high from high.

RATINGS RATIONALE

The upgrade reflects a perception of general improvement in the
company's liquidity profile following indemnification payments,
asset sales, and short-term debt refinancing, with pro-forma cash
position sufficient to cover 12-month debt maturities.
Furthermore, the company is showing a more prudent liability
management strategy which will assist in mitigating liquidity
risks. Improving operational profile of CEMIG D following the May
2018 tariff review (+23% increase in distribution tariffs) will
help compensate for lower revenue generation at CEMIG GT following
the expiration of important hydro concessions in 2017, with
contractual energy buffers assisting in mitigating exposure to
hydrology risks in light of low rainfall and high spot prices.

On a consolidated pro-forma basis, proceeds from the Eurobond
retap in the amount of US$500 million, the indemnification payment
related to the expiration of the Miranda and Sao Simao hydro
concessions in the amount of BRL1.1 billion, and the proceeds from
the sale of telecom assets in the amount of BRL649 million will
allow the consolidated cash position to reach approximately BRL2.1
billion to make front to next-twelve month debt maturities in
equivalent amount. Moody's recognizes a portion of these resources
will be used to addressed working capital mismatches at CEMIG D
related to higher energy costs, with short-term financing options
available. These costs are expected to be passed-through under the
company's next annual tariff review in 2019.

With liquidity risks addressed, CEMIG D's operations are expected
to enhance the overall consolidated credit profile, given that in
May 2018, the company underwent its tariff review process for the
2018-2023 cycle and was granted an average 23.2% increase in
tariffs. The increase recognizes higher weighted average cost of
capital and substantial capital investment, and should add BRL450
million in additional EBITDA in 2019 relative to 2017.

EBITDA at CEMIG GT is expected to be substantially lower than
historical for 2018 and 2019 following the expiration of key hydro
concession in year-end 2017 representing almost 40% of installed
capacity. The company maintains a balanced commercial policy, with
an approximate 25% and 17% buffer to energy generation levels to
absorb hydrology risks for 2018 and 2019. Generation levels
account for only 37% of total energy supply, with the ability to
renew power purchase agreements that expire over the medium term
at adequate prices, a key medium term risk exposure.

CEMIG's overall leverage profile, incorporating Moody's standard
adjustments, is moderate. CFO before changes in working capital
(CFO pre WC) to Debt registered 19.4% as of June 2018, and [CFO
pre WC + Interest Expense] / Interest Expense registered 3.2x.
Debt to EBITDA stood at 3.8x as of the same date. Moody's expects
leverage to increase in the short term as a function of lower
EBITDA in CEMIG GT and a lower pace of deleveraging at CEMIG D to
finance working capital related to higher energy costs, with CFO
pre WC to Debt reaching a low 17% and Debt to EBITDA to reach 4.5x
in 2019. Moody's expects leverage metrics to improve in line with
hydrology conditions in the medium to long term.

The ratings could be upgraded upon a perception that medium and
long-term credit metrics will sustainably remain within expected
thresholds, with CFO pre WC/Debt above 18%, and prudent management
of liquidity. A rating downgrade, although unlikely at this time,
could happen upon a perception that liquidity risks are not being
prudently managed or upon a perception of sustainable increase in
leverage such chat CFO pre WC/Debt decreases to below 15%.

The principal methodology used in rating Cemig Distribuicao S.A.
was Regulated Electric and Gas Utilities published in June 2017.
The principal methodology used in rating Cemig Geracao e
Transmissao S.A. was Unregulated Utilities and Unregulated Power
Companies published in May 2017. The principal methodologies used
in rating Companhia Energetica de Minas Gerais - CEMIG were
Government-Related Issuers published in June 2018, and Regulated
Electric and Gas Utilities published in June 2017.

Headquartered in Belo Horizonte in the State of Minas Gerais,
CEMIG is a leading Brazilian integrated utility operating in the
sectors of electricity distribution, generation and transmission,
with 4,800 megawatts (MW) in installed capacity and around 8,200
km of transmission lines across the country. The company also owns
controlling equity participation in the electricity utility Light
S.A. and the transmission company Transmissora Alianca de Energia
Eletrica (TAESA, Ba1/Aaa.br stable). Cemig is controlled by the
State of Minas Gerais, which owns 50.96% of the company's voting
capital. For the 12 months ended June 2018, Cemig reported net
revenue of BRL22.2 billion and EBITDA of BRL4.4 billion,
respectively (according to Moody's standard adjustments).


RIO GRANDE MUNICIPALITY: Moody's Withdraws B2 LT Issuer Rating
--------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo S.A. has
withdrawn Municipality of Rio Grande's B2/A2.ar (Global Scale,
Local Currency / Argentina National Scale) ratings for its own
business reasons.

The following ratings were withdrawn:

  - LT Issuer Rating: B2/A2.ar

  - Senior Secured: B2/A2.ar

  - Outlook: Stable

RATINGS RATIONALE

Moody's has withdrawn the ratings for its own business reasons.


STATKRAFT ENERGIAS: Moody's Affirms Ba3 CFR, Outlook Stable
-----------------------------------------------------------
Moody's America Latina Ltda. affirmed the Corporate Family Ratings
of Statkraft Energias Renovaveis S.A. at Ba3 on the global scale
and A1.br in the National scale. The outlook for all ratings is
stable. The affirmations follow the announcement that SKER will
acquire eight small operating hydropower plants from EDP -
Energias do Brasil (EDPB, Ba2/Aa2.br stable), for a total amount
of BRL704 million. The transaction is subject to regulatory
approval.

RATINGS RATIONALE

The affirmation of SKER's Ba3/A1.br ratings considers that the
company's credit metrics have improved significantly since
Statkraft AS (Baa1, stable), a leading power generator with focus
in renewable energy, took control of the company in July 2015. The
Norwegian shareholders have demonstrated a clear commitment to
support their Brazilian subsidiary through capital increases and
improvements in its corporate governance standards. The ratings
are further supported by SKER's management expertise in the
operation of small hydro and wind power plants and the company's,
long-term power purchase agreements. Constraining the ratings is
the company's still small scale, exposure to hydrological risks
and uncertainty on contingent liabilities.

On October 25th, SKER and EDPB announced that they had signed a
Share Purchase and Sale's agreement under which EDP will sell to
SKER 100% of the total capital of EDP Pequenas Centrais
Hidroeletricas S.A. ("EDP PCH", unrated), consisting of seven
hydropower plants in the state of EspĀ°rito Santo, and Santa Fe
Energia S.A. ("Santa Fe", unrated) comprising another small
hydropower plant in that state, amounting a total installed
capacity of 131.9 MW and a physical guarantee of 68.8 MW in the
state of EspĀ°rito Santo. With this transaction SKER's adjusted
installed capacity will reach 450MW, up from 318MW, which will
contribute to 30% higher revenues and 35% higher EBITDA
generation.

The total amount of the transaction is R$ 704 million, including
the estimated net debt of R$ 113 million. Therefore, the total
amount to be paid by Statkraft is R$ 591 million, which is subject
to adjustments between the signing and closing dates, common to
this type of transactions. The conclusion of the transaction is
subject to a series of precedent conditions being met, including:
i) approval from the Brazilian Antitrust Authority (CADE); and
(ii) approval from the Brazilian Electricity Regulatory Agency.

Moody's views that this transaction will carry a strategic benefit
for SKER by enhancing its position in the Brazilian renewable
energy market. SKER will add scale while maintaining appropriate
execution risks. This is in line with the company's business plan
to expand its portfolio through the acquisition of existing assets
or through investing in new greenfield projects.

Moody's expects that SKER will finance this acquisition with a
combination of internal cash availability and financial resources
from its shareholders: Statkraft Investimentos Ltda. (81.31%) and
Fundacao dos Economiarios Federais -- FUNCEF (18.69%), in such a
way that the company's credit metrics will remain well positioned
for its rating category. For the last twelve months as of June 30,
2018, the company's cash flow from operations before working
capital change (CFO pre-WC)-to-debt ratio is 42.6% while its cash
interest coverage ratio is 5.4x. On a pro forma basis, including
the full consolidation of the acquired assets, Moody's estimates
that SKER's CFO pre WC-to-debt will fall to around 26% in 2019 and
interest coverage slightly will be marginally above 3x.

SKER has a strong liquidity profile. As of June 30, 2018 the
company had BRL224 million in available cash compared to around
BRL49 million of debt maturing in the eighteen months to December
2019. As to the acquisition targets, EDP PCH reported as of
December 30, 2017 a BRL150 million in debentures outstanding with
final maturity in 2022 priced at CDI +1.3% per year, while Santa
Fe reported an amortizing BNDES loan of BRL75.6 million with
interest based on TJLP+1.9% per year and final maturity in 2024,
which was pre-paid in July. The cost on those debt issues compare
favorably with SKER current debt arrangements comprising mainly
Banco do Nordeste do Brasil S.A.(BNB, Ba2, stable) and Banco
Nacional do Desenvolvimento Social (BNDES, Ba2, stable) project
loans with a historical average debt cost of approximately 9.6%,
as calculated by Moody's.

To mitigate the costs related to shortfalls of energy generation
in Brazil reflected by a Generating Scale Factor (GSF) below 1.0,
SKER uses a mixed strategy of contracting an insurance coverage
for the portion of energy in the regulated market and seasonal
energy trades, while the portion of contracted energy in the free
market remains unhedged. SKER' strategy has been successful in
recent years, despite a slower recovery than anticipated in the
GSF indicator since 2017.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Upward ratings pressure could result from a sustained trend of
stronger internal cash generation. Quantitatively, the ratings
could be upgraded if Moody's sees a sustained performance of the
company that continues to support its solid credit metrics.
Maintaining cash from operations before changes in working capital
(CFO pre-WC) to total debt ratio above 15%, and the interest
coverage above 3.0x following the execution of the company's
business plan would bring upward pressure to the ratings. Moody's
assessment of the company's medium term financial and market
hedging strategy would also be a relevant consideration for the
ratings' upgrade.

Moody's would consider a downgrade rating action if the company's
credit metrics deteriorate sharply, or if Moody's perceives the
company's liquidity as inadequate to support its debt maturities
and operating cash needs. Quantitatively, a downgrade rating
action would result if the CFO Pre-WC over debt ratio declines to
12% or lower, or if the interest coverage stays below 2.0x on a
consistent basis.

Headquaterd in Florianopolis, SC -- Brazil, Statkraft Energias
Renovaveis S.A. is a holding company ultimately controlled by the
Norwegian company Statkraft AS (Baa1, stable). SKER holds
interests in 14 power plants with a total installed capacity of
318 MW consisting of 10 small and medium sized hydro-power plants
(188MW) and 4 wind power plants (130 MW). In the last twelve
months ended on June 30, 2018, Statkraft posted net consolidated
revenues of BRL337 million, EBITDA of BRL197 million and a net
profit of BRL58 million.

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


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


DOMINICAN REPUBLIC: China-DR Deal Long On Text, Short On Substance
------------------------------------------------------------------
Dominican Today reports that President Danilo Medina held a work
meeting with China counterpart, Xi Jinping, and were honorary
witnesses in the signing of agreements in various areas.

Long on text but short on substance, the announced agreements
don't include specific figures on ambitious joint projects, such
as the much-touted Santo Domingo-Santiago railway, according to
Dominican Today.

The report notes that a statement from the Presidency lists the
agreements and MOUs signed by the two nations:

    -- Agreement to suppress visas: official and diplomatic
passports will not require a visa to enter the Dominican Republic
or China.

   -- MOU between the Presidency and the Public Security Research
Center of the University of Tsingua.
MOU and Cooperation to train human resources: support to offer
courses to Dominicans.

   -- MOU for sports cooperation.

   -- Civil Aviation cooperation agreement.

   -- MOU between the Finance Ministry and the Development Bank of
China.

   -- MOU between the Finance Ministry and the Import and Export
Bank of China, on cooperation mechanisms.

   -- MOU for facilities to export of Dominican tobacco to China.
Also on China's support so for Dominican Republic to comply with
animal and plant health measures.

It's Medina's first state visit after Santo Domingo and Beijing
established diplomatic relations, which aim to identify win-win
opportunities for growth and cooperation, 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.


DOMINICAN REPUBLIC: US Envoy Again Urges Caution on Dominican Ties
------------------------------------------------------------------
Dominican Today reports that US ambassador Robin Bernstein
cautioned the countries that have initiated diplomatic ties with
China to safeguard against losing or ceding their possessions or
strategic assets in the process.

It's the second time the diplomat urges caution in the heels of
China-Dominican Republic ties since she assumed the post early
August, according to Dominican Today.

She stressed, however, that in the Latin American nations' ties
with China, Washington respects their capacity to have commercial
relations with other countries, the report notes.

"We advise you to enter into these contracts, into these
agreements, with an open mind and an understanding of what has
happened in the past, so that you can protect your strategic
assets in the country," Bernstein was quoted by outlet El Caribe
as saying, the report relays.

                             Immigration

On the hot-button issue of immigration, the US envoy said that
each country has the power to protect its borders and although it
recognizes that the humanitarian side affects everyone, citizens
must do so in a legal manner, 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.


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


ARMOUR SECURE: A.M. Best Affirms B (Fair) Fin'l. Strength Rating
----------------------------------------------------------------
A.M. Best has affirmed the Financial Strength Rating of B (Fair),
the Long-Term Issuer Credit Rating of "bb" and the Mexico National
Scale Rating of "a.MX" of Armour Secure Insurance S.A. de C.V.
(Armour) (Mexico). The outlook of these Credit Ratings (ratings)
is stable.

The ratings reflect Armour's balance sheet strength, which A.M.
Best categorizes as weak, as well as its strong operating
performance, neutral business profile and appropriate enterprise
risk management.

The ratings also reflect Armour's strong risk-adjusted
capitalization, as measured by Best's Capital Adequacy Ratio
(BCAR), strong operating performance and solid reinsurance
program. Considerably offsetting these positive factors are the
high financial leverage and low capitalization, based on the BCAR
score, of its holding company, Trebuchet Group Holdings Limited
(formerly Armour Group Holdings Limited), which could pressure
Armour's financial flexibility. In addition, despite being a
market leader in the title insurance segment, the company's small
market share in Mexico's overall insurance industry and
concentration in a single line of business counteract the
company's strengths.

Armour was authorized in 2014 by Mexico's Minister of Finance
after acquiring the former Fidelity National Title de Mexico, S.A.
de C.V. The company underwrites just title insurance and is the
market leader in terms of gross written premiums in a non-
saturated market that consists of two participants.

Armour had a strong risk-adjusted capital position, as measured by
BCAR, at year-end 2017, which is supported by positive bottom-line
results and reflected by good and improving profitability metrics.
The company's strong underwriting results are directly linked to
the favorable conditions in Mexico's real estate market.

Armour's positive trend in operating performance continued in
2017, as the company recorded a combined ratio of 70.9% and a
return on equity of 15.7%. Armour's performance is in line with
the title insurance industry, which globally is characterized by
high operating expenses. Moreover, the company maintains an
adequate reinsurance program placed entirely with a Lloyd's
syndicate.

Key rating drivers that could lead to negative rating actions
include a sustained deterioration in operating performance
resulting from adverse real estate market conditions or a
significant decline in its risk-adjusted capitalization to levels
no longer supportive of the current ratings. Key factors that
could lead to positive rating actions for Armour include a
considerable reduction in financial leverage and improvements in
the capitalization level at its holding company.


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


PARAGUAY: To Get $130MM IDB Loan to Improve Public Services
-----------------------------------------------------------
Paraguay will launch a program to provide its citizens and
businesses better public services and more opportunities, with
support of a $130 million loan approved by the Inter-American
Development Bank (IDB).

The program seeks to reduce the costs of accessing public
services, increase the use of digital technologies in businesses
and industries and expand access to broadband by improving
connectivity and the quality of Internet service.

The program will carry out actions including:

  -- Digitalize and simplify government procedures, prioritizing
the 100 most demanded procedures, so they may be completed faster
and at lower costs.

  -- Improve healthcare sector information systems, which will be
aggregated in a single digital system.

  -- Strengthen the National Cybersecurity System to secure data
and ensure reliable transactions.

  -- Strengthen digital ventures to integrate and position
Paraguay as a provider and developer of digital services in the
global market.

  -- Develop local knowledge and talent to supply the digital
economy, the labor market and entrepreneurial ventures.

  -- Establish a Digital District to create a digital ecosystem
capable of transforming the Paraguayan economy.

  -- Expand broadband coverage to provide universal access to
faster and cheaper Internet service.

  -- Set up a Data Center to securely and efficiently manage
government data and optimize public spending.

The main beneficiaries of the program will be Paraguay's citizens
and businesses as consumers of more efficient public services and
higher quality broadband Internet. Entrepreneurs and companies
will also benefit from activities aimed at promoting investment in
digital technologies.

The loan was made for a 24-year term, with a 6 1/2-year grace
period and a LIBOR-based interest rate.

As reported in the Troubled Company Reporter-Latin America on
June 28, 2018, S&P Global Ratings, on June 25, 2018, affirmed its
'BB/B' long-and short-term sovereign credit ratings on Paraguay.
The outlook remains stable. At the same time, S&P affirmed its
'BB+' transfer and convertibility assessment on Paraguay.


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


FERMARALIZ CORP: Case Summary & 2 Unsecured Creditors
-----------------------------------------------------
Debtor: Fermaraliz Corp.
        PO Box 2377
        Coamo, PR 00769

Business Description: Fermaraliz Corp. owns in fee simple a
                      property located at Bo San Ildefonso
                      Carr 14 km 31.6, Coamo, PR 00769 with
                      a current value of $383,900.

Chapter 11 Petition Date: November 1, 2018

Court: United States Bankruptcy Court
       District of Puerto Rico (Ponce)

Case No.: 18-06456

Judge: Hon. Edward A. Godoy

Debtor's Counsel: Modesto Bigas Mendez, Esq.
                  MODESTO BIGAS LAW OFFICE
                  PO Box 7462
                  Ponce, PR 00732
                  Tel: 787 844-1444
                  Fax: 787-842-4090
                  E-mail: modestobigas@yahoo.com

Total Assets: $389,300

Total Liabilities: $1,046,703

The petition was signed by Jose F. Espada Colon, president.

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

           http://bankrupt.com/misc/prb18-06456.pdf


LA CANASTA: Case Summary & 15 Unsecured Creditors
-------------------------------------------------
Debtor: La Canasta Inc.
        Avenida Luis Munoz Marin
        E 22 Altos
        Notre Dame
        Caguas, PR 00725

Business Description: La Canasta Inc. is the fee simple owner of
                      four properties in Caguas, Gurabo, and Juana
                      Diaz, Puerto Rico having a total current
                      value of $3.84 million.  The Company
                      previously sought bankruptcy protection on
                      Nov. 26, 2014 (Bankr. D. P.R. Case No. 14-
                      09826).

Chapter 11 Petition Date: November 1, 2018

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

Case No.: 18-06453

Judge: Hon. Mildred Caban Flores

Debtor's Counsel: Carmen D. Conde Torres, Esq.
                  C. CONDE & ASSOC.
                  254 San Jose Street
                  5th Floor
                  San Juan, PR 00901-1523
                  Tel: 787-729-2900
                  Fax: 787-729-2203
                  Email: notices@condelaw.com
                         condecarmen@condelaw.com

Total Assets: $3,840,000

Total Liabilities: $4,214,778

The petition was signed by Ricardo Rivera Irizarry, sub
administrator.

A full-text copy of the petition containing, among other items, a
list of the Debtor's 15 unsecured creditors is available for free
at:

           http://bankrupt.com/misc/prb18-06453.pdf


POLICLINICA FAMILIAR: Plan Outline Okayed, Plan Hearing on Dec. 11
------------------------------------------------------------------
Policlinica Familiar Shalom Inc. is now a step closer to emerging
from Chapter 11 protection after a bankruptcy judge approved the
outline of its plan of reorganization.

Judge Mildred Caban Flores of the U.S. Bankruptcy Court for the
District of Puerto Rico on Oct. 25 gave the thumbs-up to the
disclosure statement after finding that it contains "adequate
information."

Creditors are required to file their objections and submit ballots
of acceptance or rejection of the plan on or before 14 days prior
to the hearing.

A court hearing to consider confirmation of the plan is scheduled
for Dec. 11, at 9:00 a.m.  The hearing will take place at the Jose
V. Toledo Federal Building and US Courthouse, Courtroom 3.

               About Policlinica Familiar Shalom Inc.

Policlinica Familiar Shalom Inc. filed a Chapter 11 petition
(Bankr. D.P.R. Case No. 17-02544) on April 12, 2017.  The Debtor
is engaged in the health care business as defined in 11 U.S.C.
Section 101(27A) whose principal assets are located at Carr 2 Km
101.6 Barrio Terranova Quebradillas, PR 00678.  The Company said
it is suffering economic hardship and is in the process of losing
its business premises in foreclosure proceedings.

The Debtor's counsel is Jose Ramon Cintron, Esq., in San Juan,
Puerto Rico.

At the time of filing, the Debtor had estimated assets of $0 to
$50,000 and estimated liabilities of $1 million to $10 million.


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


PETROLEUM CO: Begins Importing Fuels
------------------------------------
Carolyn Kissoon at Trinidad Express reports that Petroleum Co. of
Trinidad & Tobago (Petrotrin) received its first shipment of
refined fuel Oct. 29, as the company begins to wind down its
refinery operations.

Petrotrin said the shipment was one of 16 cargoes that will be
delivered during the next four months under an agreement with BP's
Latin America Integrated Sales and Trading Group, according to
Trinidad Express.

As reported in the Troubled Company Reporter-Latin America on
Sept. 28, 2018, Moody's Investors Service placed Petroleum Co. of
Trinidad & Tobago's B1 corporate family rating and senior
unsecured debt ratings on review for downgrade. This rating action
was based on the lack of clarity regarding Petrotrin's new
business profile and strategy as well as increasing liquidity risk
related to the approaching maturity of the 2019 bonds.


                            ***********


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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