/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/190131.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, January 31, 2019, Vol. 20, No. 22 Headlines B R A Z I L SAMARCO MINERACAO: Unveils Talks as Vale Spill Hits Bonds H O N D U R A S INVERSIONES ATLANTIDA: Fitch Affirms B+ LT Issuer Default Ratings M E X I C O FINANCIERA INDEPENDENCIA: Fitch Affirms BB LT IDRs, Outlook Stable MEXICO: Deaths in Pipeline Blast Rise to 117 PETROLEOS MEXICANOS: President Aims for Renaissance of Firm P A N A M A LA HIPOTECARIA 14th: Fitch Gives B+(EXP) Rating to Series B Notes LA HIPOTECARIA 15th: Fitch Gives B(EXP)sf Rating to Class A Notes P U E R T O R I C O LUBY'S INC: Reports First Quarter Fiscal 2019 Results LUBY'S INC: Incurs $7.48 Million Net Loss in First Quarter SAN JUAN ICE: Unsecured Creditors to be Paid 7% Over 10 Years T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Rice Industry 'Facing Collapse' V E N E Z U E L A VENEZUELA: Parliament OKs Guaido's Diplomatic Appointments - - - - - =========== B R A Z I L =========== SAMARCO MINERACAO: Unveils Talks as Vale Spill Hits Bonds --------------------------------------------------------- Pablo Rosendo Gonzalez at Bloomberg News reports that Samarco Mineracao SA disclosed that it has been in advanced debt restructuring talks just days after it's co-owner Vale SA suffered a similar dam rupture that has killed at least 65 people. The distressed joint venture owned by Vale and BHP Group Ltd. had reached a preliminary deal with creditors to restructure its debt by issuing new notes, according to documents Samarco. Samarco bonds have tanked since Jan. 25 on concerns that Brazil's latest mining disaster will delay or even derail Samarco's own restart, according to Bloomberg News. "Negotiations may or may not continue," the company said in statement on its website that details the back and forth between the parties involved, the report notes. Samarco entered into confidentiality agreements on Nov. 27 with some creditors of export prepayment agreements and holders of its 4.125% bonds due 2022, 5.75% bonds due 2023 and 5.375% bonds due 2024, according to the documents, the report relays. The price of Samarco's 2022 notes plunged to 53 cents on the dollar on Jan. 28, from 75 cents before Vale's second accident on Jan. 25. Full Details The company's debt including capital and interest totaled $6 billion as of October, the documents show, the report relays. Apart from bondholders, banks including Bank of America Corp., Mizuho Financial Group Inc. and HSBC Holdings Plc hold loans for almost $1 billion, the report notes. JPMorgan Chase & Co. and Clifford Chance LLP appear as giving financial and legal advise to the company, while Houlihan Lokey, FTI Consulting Inc, Dechert LLP and Sidley Austin LLP advise the creditors, the report says. The parties, which exchanged written proposals and counter proposals, have not reached a final agreement and no further talks are currently scheduled, Samarco said, the report discloses. In the talks, creditors demanded that they receive any cash in excess of $150 million at the end of each quarter, the report relays. According to the most recent documents dated Jan. 9, creditors would agree to swap their loans and bonds for new securities due in 2024, 2025 and 2033, the report says. Samarco's mine has been shuttered since late 2015 when one of its tailings dams ruptured, killing 19 people and polluting waterways in the country's worst environmental catastrophe, the report discloses. Cleanup costs paid by co-owners Vale SA and BHP Group Ltd. ran into the billions of dollars, the report adds. As reported in the Troubled Company Reporter-Latin America on June 1, 2017, S&P Global Ratings said it affirmed then withdrew its 'D' (default) issuer and issue-level ratings on Samarco Mineracao S.A. and its senior unsecured debt at the issuer's request. =============== H O N D U R A S =============== INVERSIONES ATLANTIDA: Fitch Affirms B+ LT Issuer Default Ratings ----------------------------------------------------------------- Fitch Ratings has affirmed Inversiones Atlantida, S.A. y Subsidiarias and Banco Atlantida, S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings at 'B+' with a Stable Outlook. Fitch also affirmed Atlantida's Viability Rating at 'b+' and its national scale ratings at 'A+(hnd)'/'F1(hnd)' KEY RATING DRIVERS ATLANTIDA IDRS, VR AND SENIOR DEBT The bank's IDRs and National ratings are driven by its intrinsic creditworthiness as reflected in its VR of 'b+'. Atlantida's ratings continue to be highly influenced by the Honduran operating environment and its company profile. The ratings are also moderately influenced by the bank's modestly improving asset quality, moderate profitability, stable funding and liquidity profiles, as well as a capital position commensurate to its rating category. In Fitch's opinion, Atlantida's well positioned franchise and relatively diversified business model have enabled it to sustain a stable financial performance over the economic cycle. As of September 2018, Atlantida was the second largest bank in Honduras in terms of assets and loan portfolio and the first in customer deposits and equity. However, despite Atlantida's strong franchise and market position in Honduras, it is small on a global basis. Despite macroeconomic stability, the Honduran operating environment, and in particular, the small size of the economy, greatly influence the banks' performance and growth. Honduran banks exhibit higher levels of concentrations on both sides of the balance sheet compared on a global basis to higher rated peers, as is the case for Atlantida. Atlantida's asset quality is controlled and supported by a gradual decline of its non-performing loan (NPL) ratios, though this remains above the local industry average. At the end of the September 2018 (3Q18) Atlantida's NPL ratio was 2.4% (considering contingent loans), below its 3.3% average for 2013-2017. Concentrations remain high, at levels similar to that of its national peers. The top 20 borrowers represented 2.7x Atlantida's Fitch Core Capital (FCC), which could represent a relevant exposure in case of non-foreseen impairments on its largest debtors. The bank's profitability levels are good despite its corporate focus. Low funding costs and controlled credit expenses have gradually counterbalanced the bank's weaker operating efficiency and supported its operating profitability to risk weighted assets (RWAs) ratio, which stood at 1.8% as of end-September 2018. Fitch expects Atlantida to improve its profitability due to various strategies followed in recent periods, mainly by innovating operation processes and a more active focus on retail lending. However, the expected benefits will take time. Fitch considers Atlantida's funding and liquidity profile to be one of the bank's strengths due to its strong reliance on a stable customer deposit base underpinned by a strong franchise and ample branch network in the country. Atlantida's loan to deposits ratio is the best of the Honduran banks. As of September 2018, the ratio stood below 90% despite the banking book's continued expansion. In Fitch's view, Atlantida's liquidity risk is mitigated by its proven deposit stability through the economic cycle and its diverse funding to finance its earning assets in similar contractual conditions (interest rates, currency and terms). The bank's capitalization is commensurate to the 'B' category range. Despite a capital infusion of HNL 500 million in September 2018, the bank's FCC to RWAs ratio (calculated as reported equity minus intangibles, goodwill and pre-paid expenses) declined to 9.7% as of September 2018, from 2016-2017 10.6% average. In Fitch's view the bank's capitalization levels provide a reasonable capacity to absorb losses due to the high quality equity. Additionally, capital infusions from Atlantida's shareholders to finance its business expansion support its capitalization. Fitch believes that the bank's stable internal capital generation combined with a gradual decrease of dividends payments will enable it to sustain a reasonable capital adequacy over the expected period of loan expansion. Atlantida's expected senior global notes are rated at the same level as the bank's IDR due to its senior unsecured features. In accordance with Fitch's rating criteria, the recovery prospects of the senior unsecured debt of Atlantida is average and is reflected in a Recovery Rating of 'RR4'. SUPPORT RATING AND SUPPORT RATING FLOOR Atlantida's Support Rating (SR) of '5' and Support Rating Floor (SRF) of 'NF' reflect Fitch's belief that despite the bank's sizable market share in deposits it cannot rely on external support due to Honduras's limited ability to provide such support. INVATLAN IDRS AND SENIOR DEBT Invatlan's IDRs reflect the creditworthiness of its main subsidiary, Atlantida in Honduras, rated 'B+' on the international scale by Fitch. The ratings also consider Invatlan's high operational integration with its operating subsidiaries, as well as the light restrictions on subsidiaries upstreaming liquidity to Invatlan. Invatlan's ratings also reflect the expected moderate levels of double leverage. As of September 2018, this ratio was close to 118%, and Fitch expects it to increase due to the holding company's business expansion plans. The senior notes are rated at the same level as Invatlan's IDRs. Despite being senior secured and unsubordinated obligations, Fitch believes the collateral mechanism would not have a significant impact on recovery rates. In accordance with Fitch's rating criteria, recovery prospects for the notes are average and are reflected in their Recovery Rating of 'RR4'. RATING SENSITIVITIES ATLANTIDA IDRS, VR AND SENIOR DEBT Upside potential for Atlantida's IDRs could only come from further improvements of the Honduran operating environment. In turn, although it is not Fitch's baseline scenario, the ratings could be downgraded in the event of material deterioration in the asset quality that negatively affects its operating profitability and lead to a marked weakening of the bank's capital position, specifically if operating profitability to RWAs ratio stands consistently below 1.5% and its FCC to RWAs ratio below 9%. The expected global senior unsecured debt rating would mirror any change to Atlantida's IDRs. SUPPORT RATING AND SUPPORT RATING FLOOR Honduras's propensity or ability to provide timely support to Atlantida is not likely to change given the operating environment's structural weaknesses. As such, the SR and SRF have limited upside potential. NATIONAL RATINGS Atlantida's national scale ratings could be upgraded if the bank shows a sustained improvement of its profitability that leads to a consistent enhancement in its levels of operational efficiency. A sustained improvement in asset quality metrics, including lower NPLs ratios in conjunction with lower risk concentration would also be positive for Atlantida's creditworthiness. Conversely, while it is not Fitch's baseline scenario, the ratings could be downgraded in the event of a significant deterioration in the asset quality that leads to sustained deterioration in the bank's FCC to RWAs ratio to a level below 9%. INVATLAN IDRS AND SENIOR DEBT Invatlan's ratings will likely move in line with that of those of its main subsidiary, Atlantida. Invatlan's IDRs could also be downgraded by one notch if the company's double-leverage ratio is sustained above 120%. The global senior secured debt rating would mirror any change to Invatlan's IDRs. Fitch has affirmed the following ratings: Atlantida -- Long-Term Foreign and Local Currency IDRs at 'B+'; Outlook Stable; -- Short-Term Foreign and Local Currency IDRs at 'B'; -- Support Rating at '5'; -- Support Rating Floor at 'NF'. -- Viability Rating at 'b+'; -- Five-year USD350 million senior unsecured notes at 'B+(EXP)'/'RR4'; -- Long-Term National Rating at 'A+(hnd); Outlook Stable; -- Short-Term National Rating at 'F1(hnd)'. Invatlan -- Long-Term Foreign and Local Currency IDRs at 'B+'; Outlook Stable; -- Short-Term Foreign and Local Currency IDRs at 'B'; -- USD150 million senior secured notes at 'B+'/'RR4'. =========== M E X I C O =========== FINANCIERA INDEPENDENCIA: Fitch Affirms BB LT IDRs, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed Financiera Independencia S.A.B. de C.V. (Findep) and for its Mexican subsidiary Apoyo Economico Familiar S.A. de C.V. Sofom, E.N.R. (AEF) as follows: Findep -- Long-Term foreign and local currency IDRs at 'BB'; Outlook Stable; -- Short-Term foreign and local currency IDRs at 'B'; -- USD250m senior unsecured notes at 'BB'; -- National-scale Long-Term rating at 'A(mex)'; Outlook Stable; -- National-scale Short-Term rating at 'F1(mex)'. AEF -- National-scale Long-Term rating at 'A(mex)'; Outlook Stable; -- National-scale Short-Term rating at 'F1(mex)'. KEY RATING DRIVERS FINDEP's IDRs, NATIONAL SCALE RATINGS AND SENIOR DEBT Findep's ratings are highly influenced by its sound company profile reflected by its well-positioned franchise in the personal loans and microfinance sector in Mexico and its relatively diversified business model through a low presence in Brazil and the U.S., although growing rapidly in the U.S., which as of September 2018 represented 20% of Findep's consolidated portfolio. The company's ratings consider also the higher risk appetite associated to its lending activities by targeting riskier clients (low income) whose payment behavior is commonly strained by prevailing macroeconomic conditions that continue to pose challenges in Mexico and Brazil. Findep's ratings reflect its high level of impairments and charge- offs, which are higher than other consumer oriented entities; relatively adequate profitability ratios; an improved capital and leverage position; and comfortable funding and liquidity profiles. Although Fitch regards that non-performing loans (NPLs) and loans charge-offs at consumer oriented entities are usually high, Findep's adjusted asset quality metrics are higher than other participants in the market. The adjusted impairment ratio (impaired loans + net charge-offs from the past 12 months / gross loans + net charge-offs FPTM) stood at 19.8% at the end of September 2018, slightly higher than the 19.2% as of December 2017. The increase was primarily driven by a change to the charge- off policy at the company's U.S. subsidiary and higher charge-offs at other subsidiaries, especially in the micro lending business. This ratio remains below 20% since 2016 and reflect the entity's strategy of prioritizing asset quality vs loan growth. As expected, loan loss allowances improved, and as of September 2018 these covered 1.2x impairments. Core earnings continue to be recurrent and stable, but Findep's NIM has gradually contracted due to the growing business in U.S. with lower effective loan rates, the higher proportion of less riskier segments (formal employees), and higher interest rates in Mexico. Despite the latter, pre-tax income to average assets has remained stable since 2015, and although this metric is lower than other companies in the segment, it reflects Findep's gradual shift to less profitable but less risky lending activities. Pre-tax income to average assets was 2.5% as of September 2018 and 2.6% on average from 2014 to 2017. Findep's capital base is sound and benefited in recent years from slower loan growth, stable income generation and dividends suspension. The temporary impacts of derivatives also weigh on the company's capital base, as of 3Q18, this impact was negative. The company has been able to improve consistently its capital and leverage metrics since 2016. Debt to tangible equity stood at 3.8x at 3Q18 (3Q17: 4.2x), below the registered ratio of 4.2x as of year-end 2017 and significantly below the average of 6.3x from 2014 to 2016. Fitch does not expect any significant pressures on Findep's capital metrics in the near future since loan growth should remain moderate on a consolidated basis. Fitch views Findep's funding and liquidity profile as adequately managed with attempted funding diversification by source (a number of bank and development bank facilities) and relatively by maturity. Although there is no short-term refinancing risk, Fitch believes it is relevant in the long-term, this risk is possible in 2024 when a senior global debt bond placed in 2017 will mature. The bond currently represents 67.6% of the company's outstanding debt. Findep's liquidity benefits from the short-term duration of its loan portfolio and the resulting increased capability to reprice it. Unsecured funding comes entirely from the senior global debt placed in 2017. This proportion was enhanced during 2017 with the placement of the bond. Findep recently made changes at the senior management level, and Fitch believes incoming management need to prove adherence to previously stated strategic objectives to sustain continuity, stable growth and sound performance in the near future. Findep's global debt issuance is in line with its respective corporate rating level, as the debt is senior unsecured. AEF NATIONAL SCALE RATINGS AEF's national ratings are based on its parent's (Findep) ability and propensity to provide support, if needed. Fitch considers AEF a core subsidiary to Findep, given its high strategical and operational integration and the important role of AEF given its relevant participation of Findep's total assets and sustained contribution to its consolidated income. Findep's propensity to support AEF reflects the growing synergies, other complementary business models, and the knowledge transfer between the two entities. AEF's loans represented 20.1% of Findep's total loans as of September 2018. RATING SENSITIVITIES FINDEP's IDRs, NATIONAL SCALE RATINGS AND SENIOR DEBT Findep's ratings could be downgraded if its debt to tangible equity falls and remains steadily above 5.5x and the financial profile falls below current conditions. The latter would be as a result of a weakening profitability and asset quality metrics and a significant change to its funding structure or liquidity management. Fitch believes there is limited upside potential for an upgrade of Findep's ratings in the medium term. However, significant and sustained improvement of the company's overall financial profile, especially if accompanied by an enhanced company profile, could potentially trigger an upgrade. Senior debt ratings would mirror any changes in Findep's IDRs or could be downgraded below Findep's IDR if the level of unencumbered assets substantially deteriorates subordinating the bondholders to other debt. AEF's NATIONAL SCALE RATINGS Downside potential for AEF would be driven by any potential downgrade of Findep's ratings and/or a change of the entity's strategic importance to the parent. MEXICO: Deaths in Pipeline Blast Rise to 117 -------------------------------------------- EFE News reports that two more people have died of injuries received when an illegal tap of a fuel pipeline in the central state of Hidalgo led to an explosion, bringing the death toll from the incident to 117, the Mexican government said. Ten of the 30 people who remain hospitalized after the Jan. 18 disaster are in very serious condition, health department official Hugo Lopez-Gatell Ramirez told a press conference, according to EFE News. The critical patients have burns over up to 90 percent of their bodies as well as internal injuries, he said, adding that the department also wants to test people who live in the accident area for possible effects from having inhaled gasoline fumes, the report notes. Inhaling even relatively small amounts can cause irritation in the nose and throat, headaches, dizziness, nausea and difficulty breathing, the report relays. The report notes that the blast occurred hours after hundreds of residents of the town of Tlahuelilpan gathered near a pipeline to collect fuel after thieves had drilled a hole in the duct. Army soldiers had arrived at the scene prior to the explosion but were unable to control the large crowd, the report says. Stealing fuel from pipelines owned by state oil company Petroleos Mexicanos (Pemex) and re-selling it on the black market has become a major criminal enterprise in Mexico, the report discloses. This form of theft cost Mexico some $3.4 billion last year, according to official figures, the report relays. Since his Dec. 1, 2018, inauguration, leftist President Andres Manuel Lopez Obrador has launched an all-out fight against the racket, deploying thousands of police and troops to increase the surveillance of pipelines, the report notes. The administration also adopted a change in Pemex's method for shipping gasoline and diesel from refineries to urban distribution centers, opting to transport more fuel via tanker trucks instead of pipelines, the report relays. That modification has caused severe supply problems in at least 10 states and Mexico City and led to the closing of service stations and panic purchases, the report notes. The report relays that in parallel with those steps, Lopez Obrador presented a plan to provide economic aid to communities along the routes to discourage residents from illegally tapping into the conduits. The plan is expected to benefit 1.68 million people in 91 municipalities and has an estimated price tag of 3.86 billion pesos ($187 million), the report notes. The goal is to alleviate poverty and end the need for people to tap the pipelines to get fuel, the president said, the report adds. PETROLEOS MEXICANOS: President Aims for Renaissance of Firm ----------------------------------------------------------- The Latin American Herald reports that state oil company Petroleos Mexicanos (Pemex) needs lower taxes, more investment and an end to the fuel-theft racket that cost the firm $3.4 billion in 2018 if it is to survive, President Andres Manuel Lopez Obrador said. "Pemex is one of the oil companies that pays the most taxes in the world, so we will have to invest more because it's one of the nation's basic industries," he said during his daily morning news conference, according to The Latin American Herald. Lopez Obrador said that the state company had been left without political support, something he described as "a deliberate plan to break" the company by previous administrations. Pemex employees and company veterans have long complained that Mexican politicians treat the state oil monopoly as a cash cow and that political considerations take precedence over good business practice in the management of the huge company, the report notes. "It had never been the case that (Pemex) had to buy crude oil," Lopez Obrador said, adding that the company expects to restore production to previous levels this year by tripling the number of active wells from 50 to 150, the report relays. The leader of the leftist Morena party criticized, once again, the energy sector overhaul carried out by his predecessor, Enrique Pena Nieto, who opened the sector to privatization after almost eight decades as a state monopoly, the report discloses. "I'm waiting for them to apologize to us for the energy reform. They committed a serious error in trusting that awarding contracts in the so-called (bidding) rounds was going to bring investment," the president said, the report relays. Meanwhile, the government announced the purchase of 671 additional tanker trucks in a bid to alleviate fuel shortages, the report says. Lopez Obrador said that the fight against fuel theft -- an activity known as "huachicoleo" -- is making good progress, the report relays. "If we continue (working) as we are now, we will save between MXN40 billion and MXN50 billion ($2.63 billion to $3 billion) annually," the president said, the report adds. About Petroleos Mexicanos Based in Colonia Veronica Anzures, Mexico, Mexican Petroleum, also known as Petroleos Mexicanos, engages in the exploration, exploitation, refining, transportation, storage, distribution, and sale of crude oil, natural gas, and derivatives of petroleum and natural gas in Mexico. It explores and produces crude oil and natural gas in the northeastern and southeastern regions of Mexico and offshore in the Gulf of Mexico; converts crude oil into gasoline, jet fuel, diesel, fuel oil, asphalts, and lubricants, as well as distributes and markets these products in Mexico; and processes wet natural gas to obtain dry natural gas, liquefied petroleum gas, and other natural gas liquids. * * * As reported in the Troubled Company Reporter on Oct. 05, 2016, Mexican Petroleum filed its report on form 6-K, disclosing a net loss of MXN145.47 billion on MXN480.70 billion of total sales for the six-month period ended June 30, 2016, compared to a net loss of MXN185.18 billion on MXN588.36 billion of total sales for the same period in the prior year. As of June 30, 2016, the Company had MXN2.05 trillion in total assets, MXN3.50 trillion in total liabilities and a total stockholders' deficit of MXN1.44 trillion. The Company has experienced recurring losses from its operations and have negative working capital and negative equity, which raises substantial doubt regarding its ability to continue as a going concern. =========== P A N A M A =========== LA HIPOTECARIA 14th: Fitch Gives B+(EXP) Rating to Series B Notes ----------------------------------------------------------------- Fitch Ratings has assigned the following expected ratings to notes issued by La Hipotecaria Fourteenth Mortgage-Backed Note Trust as indicated: -- $55,200,000 series A notes at 'BBB(EXP)sf'; Outlook Stable; -- $3,600,000 series B notes at 'B+(EXP)sf'; Outlook Stable; -- $1,200,000 series C notes at 'B(EXP)sf'; Outlook Stable. The notes will ultimately be backed by a $60 million pool of residential mortgages to lower-middle-income borrowers in Panama (Issuer Default Rating BBB/Stable/Country Ceiling A) by Banco La Hipotecaria S.A. Fitch's ratings address the likelihood of timely payment of interest on a monthly basis and ultimate payment of principal by legal final maturity in September 2046 for the series A notes, and ultimate payment of interest and principal for series B and C notes. KEY RATING DRIVERS Asset Analysis Fitch has defined a weighted average foreclosure frequency (WAFF) of 17.9% and a weighted average recovery rate (WARR) of 51.6% for the 'BBBsf' stress scenario, and a WAFF of 3.3% and a WARR of 74.8% for the 'Bsf' scenario. When the final portfolio is selected by La Hipotecaria from a group of eligible assets prior to closing, they will have characteristics substantially similar to the following: average seasoning of 87 months and remaining term 257 months, weighted average current loan-to-value is 70.5% and weighted average payment-to-income is 28.9%, and the vast majority of borrowers (78.8%) pay through payroll deduction mechanism. Cash Flow Analysis The series A notes benefit from a sequential pay structure wherein target amortization payments for this series are senior to interest and principal payments on the series B and C notes. Series A notes also benefit from CE of 8%, an interest reserve account equivalent to 3x its next interest payment and excess spread, which allow them to pass the 'BBBsf' stresses. Series B notes benefit from CE of 2% and excess spread, while series C notes benefit from excess spread. Series B notes pass 'B+sf' stresses, while the series C notes pass 'Bsf' stresses. Operational Risk Grupo ASSA, S.A. (the primary servicer) has hired La Hipotecaria as the servicer for the mortgages. Fitch considers La Hipotecaria's expertise in originating and servicing mortgages for low- to middle-income borrowers to be adequate and in line with market standards. Fitch currently rates three other RMBS transactions backed by mortgages originated by La Hipotecaria out of Panama. Macroeconomic Factors As a result of the macroeconomic environment and potential idiosyncratic risks embedded in Latin America, stresses applied to the rated notes are higher and comparable to those Fitch would otherwise apply two rating categories above the cap level (defined at 'A+sf' for Panama), according to Fitch's "Structured Finance and Covered Bonds Country Risk Rating Criteria." RATING SENSITIVITIES Expected impact on the note rating of increased defaults (series A): Current rating: 'BBB(EXP)sf' Increase base case defaults by 15%: 'BBB-(EXP)sf' Increase base case defaults by 30%: 'BBB-(EXP)sf' Expected impact on the note rating of increased defaults (series B): Current rating: 'B+(EXP)sf' Increase base case defaults by 15%: 'B+(EXP)sf' Increase base case defaults by 30%: 'B(EXP)sf' Expected impact on the note rating of increased defaults (series C): Current rating: 'B(EXP)sf' Increase base case defaults by 15%: 'B(EXP)sf' Increase base case defaults by 30%: 'B(EXP)sf' Expected impact on the note rating of decreased recoveries (series A): Current rating: 'BBB(EXP)sf' Reduce base case recovery by 15%: 'BBB-(EXP)sf' Reduce base case recovery by 30%: 'BBB-(EXP)sf' Expected impact on the note rating of decreased recoveries (series B): Current rating: 'B+(EXP)sf' Reduce base case recovery by 15%: 'B+(EXP)sf' Reduce base case recovery by 30%: 'B+(EXP)sf' Expected impact on the note rating of decreased recoveries (series C): Current rating: 'B(EXP)sf' Reduce base case recovery by 15%: 'B(EXP)sf' Reduce base case recovery by 30%: 'B(EXP)sf' Expected impact on the note rating of decreased recoveries (series A): Current rating: 'BBB(EXP)sf' Increase base case defaults and reduction in base case recovery by 15%: 'BBB-(EXP)sf' Increase base case defaults and reduction in base case recovery by 30%: 'BB-(EXP)sf' Expected impact on the note rating of decreased recoveries (series B): Current rating: 'B+(EXP)sf' Increase base case defaults and reduction in base case recovery by 15%: 'B(EXP)sf' Increase base case defaults and reduction in base case recovery by 30%: 'B(EXP)sf' Expected impact on the note rating of decreased recoveries (series C): Current rating: 'B(EXP)sf' Increase base case defaults and reduction in base case recovery by 15%: 'B(EXP)sf' Increase base case defaults and reduction in base case recovery by 30%: 'B(EXP)sf' Additionally, the ratings assigned to the series notes are sensitive to the credit quality of the Panamanian sovereign. Default and recovery stresses on the mortgage portfolio for a given rating increase at a faster rate the more the rating goes up and diverges from that of the sovereign entity. Material increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels greater than Fitch's base case expectations, which in turn may result in negative rating actions on the notes. USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. Historical vintage data on La Hipotecaria's mortgage portfolio are publicly available on its website. Also available is detailed information on recovery levels and delinquency migration/transition matrices. The historical data on La Hipotecaria's portfolio was prepared by Asset Technologies, LLC. Fitch was provided with information on a loan-by-loan basis; the data delivered were of good quality. Fitch conducted a review of a small-targeted sample of La Hipotecaria's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. The data used in the development of the ratings were reviewed by Fitch and are considered sufficient for the ratings to be assigned. LA HIPOTECARIA 15th: Fitch Gives B(EXP)sf Rating to Class A Notes ----------------------------------------------------------------- Fitch Ratings has assigned expected ratings to the following notes to be issued by La Hipotecaria Fifteenth Mortgage-Backed Notes as indicated: -- $35,200,000 series A notes at 'B(EXP)sf'; Outlook Stable; -- $4,000,000 series B notes at 'CCC(EXP)sf'; Outlook Stable; -- $800,000 series C notes at 'CCC(EXP)sf'; Outlook Stable. The notes will ultimately be backed by a $40 million pool of residential mortgages made to lower-middle-income borrowers in El Salvador (Issuer Default Rating B-/Stable/County Ceiling B) by La Hipotecaria S.A. de C.V. (La Hipotecaria). Fitch's ratings address the likelihood of timely payment of interest on a monthly basis and ultimate payment of principal by legal final maturity in July 2047 for the series A notes, and ultimate payment of interest and principal for the series B and C notes. KEY RATING DRIVERS Asset Analysis Fitch has defined a weighted average foreclosure frequency (WAFF) of 13.0% and WA recovery rate (WARR) of 51.0% for the 'Bsf' stress scenario, and a WAFF of 4.3% and a WARR of 75.9% for the 'CCCsf' expected scenario. When the final portfolio is selected by La Hipotecaria from a group of eligible assets prior to closing, they will have characteristics substantially similar to the following: average seasoning of 45 months and remaining term 304 months, WA current loan-to-value is 81.9% and WA payment-to-income is 26.4%, and the vast majority of borrowers (76.1%) pay through payroll deduction mechanism. Cash Flow Analysis The series A notes benefit from a sequential pay structure, where target amortization payments for this series are senior to interest and principal payments on the series B and C notes. Series A notes also benefit from CE of 12%, an interest reserve account equivalent to 3(x) its next interest payment, and excess spread, which allow them to pass the 'Bsf' stresses. Series B notes benefit from CE of 2%, an interest reserve account equivalent 3x its next interest payment and excess spread, while series C notes just benefit from excess spread. Series B and C notes pass at 'CCCsf', level assigned by Fitch as the expected scenario. Operational Risk Pursuant to the servicer agreement, Grupo ASSA, S.A. (the primary servicer) has hired La Hipotecaria S.A. de C.V (the sub-servicer) to be the servicer for the mortgages. La Hipotecaria has acquired an expertise originating and servicing mortgages for low- to middle-income borrowers. Fitch currently rates three other RMBS transactions backed by mortgages originated by La Hipotecaria out of El Salvador. Fitch considers La Hipotecaria's originating and servicing capabilities to be adequate and in line with market standards. Macroeconomic Factors As a result of the macroeconomic environment, the stresses applied are higher and comparable to those Fitch would otherwise apply three rating categories above the cap level (defined at BB-sf for El Salvador), according to Fitch's "Structured Finance and Covered Bonds Country Risk Rating Criteria." RATING SENSITIVITIES Expected impact on the note rating of increased defaults (series A): Current rating: 'B(EXP)sf' Increase base case defaults by 15%: 'B(EXP)sf' Increase base case defaults by 30%: 'B(EXP)sf' Expected impact on the note rating of increased defaults (series B): Current rating: 'CCC(EXP)sf' Increase base case defaults by 15%: 'CCC(EXP)sf' Increase base case defaults by 30%: 'CCC(EXP)sf' Expected impact on the note rating of increased defaults (series C): Current rating: 'CCC(EXP)sf' Increase base case defaults by 15%:'CCC(EXP)sf' Increase base case defaults by 30%: 'CCC(EXP)sf' Expected impact on the note rating of decreased recoveries (series A): Current rating: 'B(EXP)sf' Reduce base case recovery by 15%: 'B(EXP)sf' Reduce base case recovery by 30%: 'B(EXP)sf' Expected impact on the note rating of decreased recoveries (series B): Current rating: 'CCC(EXP)sf' Reduce base case recovery by 15%: 'CCC(EXP)sf' Reduce base case recovery by 30%: 'CCC(EXP)sf' Expected impact on the note rating of decreased recoveries (series C): Current rating: 'CCC(EXP)sf' Reduce base case recovery by 15%: 'CCC(EXP)sf' Reduce base case recovery by 30%: 'CCC(EXP)sf' Expected impact on the note rating of decreased recoveries (series A): Current rating: 'B(EXP)sf' Increase base case defaults and reduction in base case recovery by 15%: 'B(EXP)sf' Increase base case defaults and reduction in base case recovery by 30%: 'B(EXP)sf' Expected impact on the note rating of decreased recoveries (series B): Current rating: 'CCC(EXP)sf' Increase base case defaults and reduction in base case recovery by 15%: 'CCC(EXP)sf' Increase base case defaults and reduction in base case recovery by 30%: 'CCC(EXP)sf' Expected impact on the note rating of decreased recoveries (series C): Current rating: 'CCC(EXP)sf' Increase base case defaults and reduction in base case recovery by 15%: 'CCC(EXP)sf' Increase base case defaults and reduction in base case recovery by 30%: 'CCC(EXP)sf' Additionally, the ratings assigned to the series notes are sensitive to the credit quality of the Salvadorian sovereign and, to a lesser extent, the Panamanian sovereign. Default and recovery stresses on the mortgage portfolio for a given rating increase at a faster rate the more the rating goes up and diverges from that of the sovereign entity. The rating of series notes is sensitive to changes in the credit quality of El Salvador. A downgrade of El Salvador's ratings, specifically its country ceiling (B), could lead to a downgrade on the notes. Material increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels greater than Fitch's base case expectations, which in turn may result in negative rating actions on the notes. USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. Historical vintage data on La Hipotecaria's mortgage portfolio are publicly available on its website. Also available is detailed information on recovery levels and delinquency migration/transition matrices. The historical data on La Hipotecaria's portfolio are prepared by Asset Technologies, LLC. Fitch was provided with information on a loan-by-loan basis; the data delivered were of good quality. Fitch conducted a review of a small-targeted sample of La Hipotecaria's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. The data used in the development of the ratings were reviewed by Fitch and are considered sufficient for the ratings to be assigned. ====================== P U E R T O R I C O ====================== LUBY'S INC: Reports First Quarter Fiscal 2019 Results ----------------------------------------------------- Luby's, Inc. announced unaudited financial results for its sixteen-week first quarter fiscal 2019, which ended on Dec. 19, 2018. First Quarter Key Metrics (comparisons to first quarter fiscal 2018) * Total sales were $102.9 million * Same-store sales decreased 5.5% * Culinary Contract Services sales increased $2.6 million to $9.5 million * Loss from continuing operations of $7.5 million in the first quarter compared to loss from continuing operations of $5.5 million in the first quarter fiscal 2018 * Adjusted EBITDA decreased $0.8 million Chris Pappas, president and CEO, commented, "Our turn-around of the business is underway. While sales pressure persisted in the first quarter, we reduced our food and operating costs at a greater percentage than the sales declined. In addition, we have taken substantial actions to restructure our corporate overhead that will result in more than $3.0 million of annual savings in selling, general, and administrative costs. "We also continue to make positive progress with our property asset sales program, and as of this announcement, we have generated proceeds of $26.8 million, or about 60%, of our $45 million asset sales program. In addition, we refinanced our credit facility on December 13, 2018, providing $60.0 million of debt financing. As a result of this refinancing, we put close to $20.0 million of cash on the balance sheet ($8.7 million in available for use cash and another $11.1 million in restricted cash that has been set aside for future interest payments and other short term commitments). As of the date of this announcement, we have already repaid $9.1 million on our debt balance utilizing proceeds from the sale of property. "Our new Chief Operating Officer, Todd Coutee, is leveraging his three decades of restaurant experience to increase efficiency throughout our operations. He is realigning our organization by getting the right people in the right positions, coaching restaurant managers and inspiring our front-line employees by setting the right tone and leading by example. This leadership is driving positive changes in our menu offering, marketing efforts and customer service initiatives. "From a marketing perspective, we are deploying technology and making improvements in mobile ordering, utilizing third party delivery platforms, and other services, to meet the modern needs/desires of our customers. We are utilizing more measurable digital marketing campaigns in conjunction with traditional media outlets. Our intention is to highlight our differentiation with respect to our competitors. "Subsequent to the first quarter, through January 20, 2019, our total same-store sales have turned to a positive 0.7% with our cafeteria brand achieving a robust positive 2.8% compared to same period last year. "Lastly, we plan to re-franchise many of our company-owned Fuddruckers as we transition to primarily a franchise model for Fuddruckers, while retaining company-owned stores in our core market of Houston." First Quarter Restaurant Sales: * Luby's Cafeterias sales decreased $4.6 million versus the first quarter fiscal 2018, due to the closure of six locations over the prior year and a 3.0% decrease in Luby's same-store sales. The decrease in same-store sales was the result of a 10.5% decrease guest traffic, partially offset by a 8.4% increase in average spend per guest. * Fuddruckers sales at company-owned restaurants decreased $5.4 million versus the first quarter fiscal 2018, due to 14 restaurant closings and a 11.2% decrease in same-store sales. The decrease in same-store sales was the result of a 17.1% decrease guest traffic, partially offset by a 7.1% increase in average spend per guest. * Combo location sales decreased $0.7 million, or 11.1%, versus first quarter fiscal 2018. * Cheeseburger in Paradise sales decreased $2.6 million. The decrease in sales is related to reducing operations to a single store compared to operating eight locations in the first quarter fiscal 2018. * Loss from continuing operations was $7.5 million, or $0.25 per diluted share, compared to a loss of $5.5 million, or $0.19 per diluted share, in the first quarter fiscal 2018. * Store level profit, defined as restaurant sales plus vending revenue less cost of food, payroll and related costs, other operating expenses, and occupancy costs, was $9.2 million, or 10.1% of restaurant sales, in the first quarter compared to $11.1 million, or 10.6% of restaurant sales, during the first quarter fiscal 2018. The decline in store-level profit was primarily the result of higher restaurant payroll and related costs as a percentage of restaurant sales, partially offset by lower food costs and other operating costs as a percentage of sales. The increase in payroll and related costs as a percentage of restaurants sales was the result of higher average wage rates and sales declines that outpaced the reduction in hours deployed in our restaurants required to maintain service levels. Food costs declined as the Company changed the mix of menu offerings as well as applied further focus on efficient operations, including minimizing waste. Within the Company's operating costs, it was able to reduce restaurant supplies and restaurant services to a level proportionate with reduced sales levels. Store level profit is a non-GAAP measure, and reconciliation to loss from continuing operations is presented after the financial statements. * Culinary Contract Services revenues increased by $2.6 million to $9.5 million with 30 operating locations during the first quarter. New locations contributed approximately $2.5 million in revenue and locations continually operated over the prior full year increased revenue approximately $0.4 million. These increases were partially offset by a $0.3 million decrease in revenue from locations that ceased operations. Culinary Contract Services profit margin decreased to 7.2% of Culinary Contract Services sales in the first quarter compared to 8.0% in the first quarter fiscal 2018. * Selling, general and administrative expenses decreased $0.3 million. Removing one-time severance and proxy-solicitation and communication costs of approximately $1.0 million, selling, general and administrative expenses decreased $1.3 million. The decrease reflects reductions in corporate staff and related costs as well as reductions in marketing spend. Balance Sheet and Capital Expenditures The Company ended the first quarter with a debt balance outstanding of $60.0 million, an increase from $39.5 million at the end of fiscal 2018. During the first quarter, our capital expenditures decreased to $1.1 million compared to $4.3 million in the first quarter fiscal 2018. At the end of the first quarter, the Company had $8.7 million in available cash, $11.1 million in restricted cash, and $108.1 million in total shareholders' equity. Since the inception of the Company's $45.0 million asset sales program, it has generated proceeds of $26.8 million. About Luby's Houston, Texas- based Luby's, Inc. (NYSE: LUB) -- http://www.lubysinc.com/-- operates 140 restaurants nationally as of Dec. 19, 2018: 82 Luby's Cafeterias, 57 Fuddruckers, one Cheeseburger in Paradise restaurants. Luby's is the franchisor for 103 Fuddruckers franchise locations across the United States (including Puerto Rico), Canada, Mexico, the Dominican Republic, Panama, and Colombia. Luby's Culinary Contract Services provides food service management to 30 sites consisting of healthcare, corporate dining locations, and sports stadiums. Luby's reported a net loss of $33.56 million for the year ended Aug. 29, 2018, compared to a net loss of $23.26 million for the year ended Aug. 30, 2017. As of Dec. 19, 2018, Luby's had $208.89 million in total assets, $100.83 million in total liabilities, and $108.05 million in total shareholders' equity. Grant Thornton LLP, in Houston, Texas, issued a "going concern" qualification in its report on the consolidated financial statements for the year ended Aug. 29, 2018, noting that the Company sustained a net loss of approximately $33.6 million and net cash used in operating activities of approximately $8.5 million. The Company's term and revolving debt of approximately $39.5 million is due May 1, 2019. The Company was in default of certain debt covenants of its term and revolving credit agreements maturing on May 1, 2019. On Aug. 24, 2018, the lenders agreed to waive the existing events of default resulting from any breach of certain financial covenants or the limitation on maintenance capital expenditures, in each case that may have occurred during the period from and including May 9, 2018 until Aug. 24, 2018, and any related events of default. Additionally, the lenders agreed to waive the requirements that the Company comply with certain financial covenants until Dec. 31, 2018, at which time the Company will be in default without an additional waiver or alternative financing. These conditions, along with other matters, raise substantial doubt about the Company's ability to continue as a going concern. LUBY'S INC: Incurs $7.48 Million Net Loss in First Quarter ---------------------------------------------------------- Luby's, Inc., has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $7.48 million on $102.91 million of total sales for the quarter ended Dec. 19, 2018 compared to a net loss of $5.53 million on $113.49 million of total sales for the quarter ended Dec. 20, 2017. As of Dec. 19, 2018, Luby's had $208.89 million in total assets, $100.83 million in total liabilities, and $108.05 million in total shareholders' equity. Cash provided by operating activities was approximately $1.3 million in the quarter ended Dec. 19, 2018, an approximate $2.2 million decrease from the quarter ended Dec. 20, 2017. The approximate $2.2 million decrease in cash provided by operating activities is due to an approximate $2.1 million decrease in cash provided by operations before changes in operating assets and liabilities and an approximate $0.1 million decrease in cash provided by changes in operating assets and liabilities for the quarter ended Dec. 19, 2018. Cash used in operating activities before changes in operating assets and liabilities was approximately $0.3 million in the quarter ended Dec. 19, 2018, an approximate $2.1 million decrease compared to a source of cash in the quarter ended Dec. 20, 2017. The $2.1 million decrease in cash provided by operating activities before changes in operating assets and liabilities was primarily due to decreased store-level profit from its Company-owned restaurants. Changes in operating assets and liabilities was an approximate $1.6 million source of cash in the quarter ended Dec. 19, 2018 and an approximate $1.7 million source of cash in the quarter ended Dec. 20, 2017. The approximate $0.1 million decrease in the source of cash was due to differences in the change in asset and liability balances between the quarter ended Dec. 19, 2018 and the quarter ended Dec. 20, 2017. Increases in current asset accounts are a use of cash while decreases in current asset accounts are a source of cash. During the quarter ended Dec. 19, 2018, the change in trade accounts and other receivables, net, was an approximate $0.7 million source of cash which was an approximate $1.0 million increase from the use of cash in the quarter ended Dec. 20, 2017. The change in food and supplies inventory during the quarter ended Dec. 19, 2018 was an approximate $0.1 million use of cash which was an approximate $0.2 million decrease from the use of cash in the quarter ended Dec. 20, 2017. The change in prepaid expenses and other assets was an approximate $1.9 million source of cash during the quarter ended Dec. 19, 2018, compared to a $0.4 million source of cash in the quarter ended Dec. 20, 2017. Increase in current liability accounts are a source of cash, while decreases in current liability accounts are a use of cash. During the quarter ended Dec. 19, 2018, changes in the balances of accounts payable, accrued expenses and other liabilities was an approximate $0.9 million use of cash, compared to a source of cash of approximately $1.9 million during the quarter ended Dec. 20, 2017. The Company generally reinvests available cash flows from operations to develop new restaurants, maintain and enhance existing restaurants and support Culinary Contract Services. Cash used in investing activities was approximately $0.9 million in the quarter ended Dec. 19, 2018 and approximately $3.8 million in the quarter ended Dec. 20, 2017. Capital expenditures were approximately $1.1 million in the quarter ended Dec. 19, 2018 and approximately $4.3 million in the quarter ended Dec. 20, 2017. Proceeds from the disposal of assets were approximately $0.2 million in the quarter ended Dec. 19, 2018 and approximately $0.2 million in the quarter ended Dec. 20, 2017. Insurance proceeds received as a result of claims made from property damage caused by Hurricane Harvey were approximately $0.3 million in the quarter ended Dec. 20, 2017. Cash provided by financing activities was approximately $15.7 million in the quarter ended Dec. 19, 2018 compared to an approximate $30 thousand source of cash during the quarter ended Dec. 20, 2017. Cash flows from financing activities was primarily the result of the Company's 2018 Credit Agreement. During the quarter ended Dec. 19, 2018, net cash provided by the Company's 2018 Term Loan was $58.4 million, cash used in Revolver borrowings was approximately $20.0 million, its Term Loan re-payment was approximately $19.5 million, cash used for debt issuance costs was approximately $3.2 million, and cash used for equity shares withheld to cover taxes was $8 thousand. During the quarter ended Dec. 20, 2017, borrowings on the Company's Revolver exceeded repayments by approximately $0.1 million and cash used for equity shares withheld to cover taxes was approximately $70 thousand. A full-text copy of the Form 10-Q is available for free at: https://is.gd/LbOgTI About Luby's Houston, Texas- based Luby's, Inc. (NYSE: LUB) -- http://www.lubysinc.com/-- operates 140 restaurants nationally as of Dec. 19, 2018: 82 Luby's Cafeterias, 57 Fuddruckers, one Cheeseburger in Paradise restaurants. Luby's is the franchisor for 103 Fuddruckers franchise locations across the United States (including Puerto Rico), Canada, Mexico, the Dominican Republic, Panama, and Colombia. Luby's Culinary Contract Services provides food service management to 30 sites consisting of healthcare, corporate dining locations, and sports stadiums. Luby's reported a net loss of $33.56 million for the year ended Aug. 29, 2018, compared to a net loss of $23.26 million for the year ended Aug. 30, 2017. Grant Thornton LLP, in Houston, Texas, issued a "going concern" qualification in its report on the consolidated financial statements for the year ended Aug. 29, 2018, noting that the Company sustained a net loss of approximately $33.6 million and net cash used in operating activities of approximately $8.5 million. The Company's term and revolving debt of approximately $39.5 million is due May 1, 2019. The Company was in default of certain debt covenants of its term and revolving credit agreements maturing on May 1, 2019. On Aug. 24, 2018, the lenders agreed to waive the existing events of default resulting from any breach of certain financial covenants or the limitation on maintenance capital expenditures, in each case that may have occurred during the period from and including May 9, 2018 until Aug. 24, 2018, and any related events of default. Additionally, the lenders agreed to waive the requirements that the Company comply with certain financial covenants until Dec. 31, 2018, at which time the Company will be in default without an additional waiver or alternative financing. These conditions, along with other matters, raise substantial doubt about the Company's ability to continue as a going concern. SAN JUAN ICE: Unsecured Creditors to be Paid 7% Over 10 Years ------------------------------------------------------------- San Juan Ice, Inc. filed with the U.S. Bankruptcy Court for the District of Puerto Rico a small business disclosure statement describing its chapter 11 plan. The Debtor is a Corporation incorporated under the laws of the Commonwealth of Puerto Rico on Feb. 18, 1984 and began operations on the same date. The Debtor operates an ice plant. Under the plan, priority unsecured creditors will receive a distribution of no less than 100% of their allowed claims over a period of five years. General unsecured creditors will be paid 7% over a period of 10 years after priority claims are paid. Payments and distributions under the Plan will be funded by income generated from the sales from the ice plant performed by debtor. Debtor does not foresee any problems achieving its financial projections and payment plan. The plan contemplates the continued monthly payment of secured claims and the payment of priority claims within the five years of the plan. Upon the successful completion of payments, the attorney's fees, which form part of the claim may be eliminated, reducing the overall amount owed. The court should be cognizant of the fact that compensation for damages as a result of Hurricane Maria is uncertain and an issue of litigation at the present time. This situation poses a risk in the event of the need to conduct future repairs. A copy of the Disclosure Statement is available at https://is.gd/ZkuRYv from Pacermonitor.com at no charge. About San Juan Ice, Inc. San Juan Ice Inc., based in San Juan, PR, filed a Chapter 11 petition (Bankr. D.P.R. Case No. 18-01784) on April 3, 2018. In the petition signed by Ramiro Rodriguez Pena, president, the Debtor disclosed $580,495 in assets and $1.17 million in liabilities. The Hon. Mildred Caban Flores presides over the case. Robert Millan, Esq., at Millan Law Offices, serves as bankruptcy counsel. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD & TOBAGO: Rice Industry 'Facing Collapse' -------------------------------------------------- Ria Taitt at Trinidad Express reports that David Paponette, president of the National Rice Farmers, told the Joint Select Committee on State Enterprises: "We are on the brink of the total collapse of the rice industry." The report notes that JSC member Fazal Karim asked: "Do you think you might reach a situation where we don't have any raw material to mill at Carlsen Field and the closure of the rice industry and the total importation of rice?" "We are very, very close to that point," Mr. Paponette answered, according to Trinidad Express. The Committee was told that there would be no local production of rice for this year because last year's floods washed away all the seeds, the report relays. And rice farmer Fazal Akaloo (Rice Growers Association) said no compensation had been received from the Government for the losses sustained in those floods. "We might get that (money) next year," he said, the report adds. ================= V E N E Z U E L A ================= VENEZUELA: Parliament OKs Guaido's Diplomatic Appointments ---------------------------------------------------------- EFE News reports that the Venezuelan Parliament, with its overwhelming opposition majority, authorized the appointment of the diplomatic officials proposed by the institution's chief and self-proclaimed interim president, Juan Guaido, to represent the new government in 10 countries in the Americas. Mr. Guaido sent a communication to the National Assembly in which he designates representatives to Argentina, the United States, Canada, Chile, Colombia, Costa Rica, Ecuador, Honduras, Panama, Peru and the Lima Group, and those officials were approved "unanimously," according to the Legislative Secretariat, reports EFE News. Named as Venezuela's diplomatic representative to Argentina was Elisa Trota Gamos; to the US, Carlos Vecchio; to Canada, Orlando Viera; along with Guarequena Gutierrez to Chile; Humberto Calderon to Colombia; Maria Faria to Costa Rica; Rene de Sola Quintero to Ecuador and Claudio Sandoval to Honduras, the report relays. Also designated to represent Caracas were Carlos Scull in Peru and lawmaker Julio Borges to be the envoy to the Lima Group, comprised of 14 countries in the region, the report says. Two of the nominees, Mr. Vecchio and Mr. Borges, are influential opposition leaders who have pushed for international pressure to be brought to bear against President Nicolas Maduro, who the opposition says has "usurped" the presidency, given that his opponents do not recognize his reelection last May, contending that the vote was illegitimate, the report discloses. The report relays that given this situation, on Jan. 23, a few days after President Maduro was sworn in for his second term in office, Mr. Guaido proclaimed himself interim president. The anti-Chavista forces say that with President Maduro's reelection being illegitimate, the presidency devolves onto the head of Parliament until new elections can be held, according to the opposition's interpretation of Articles 233, 333 and 350 of Venezuela's Constitution, the report says. At least 30 countries, including all the ones to which diplomats were appointed, as well as Australia, have recognized Guaido as the country's interim president, the report notes. The United States was the first nation to recognize Guaido as president -- and in fact he did not proclaim himself interim president until after he had received Washington's assurance of support -- followed by a number of countries in the Western Hemisphere. As reported in the Troubled Company Reporter-Latin America, S&P Global Ratings in May 2018 removed its long- and short-term local currency sovereign credit ratings on Venezuela from CreditWatch with negative implications and affirmed them at 'CCC-/C'. The outlook on the long-term local currency rating is negative. At the same time, S&P affirmed its 'SD/D' long- and short-term foreign currency sovereign credit ratings on Venezuela. S&P's transfer and convertibility assessment remains at 'CC'. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Submissions about insolvency-related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2019. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *