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/raid1/www/Hosts/bankrupt/TCRLA_Public/190403.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 Wednesday, April 3, 2019, Vol. 20, No. 67 Headlines B R A Z I L BRF SA: Fitch Cuts LT IDR & Senior Unsecured Notes to 'BB' ENERGISA SA: Fitch Affirms LT IDRs at 'BB', Outlook Stable ODEBRECHT ENGENHARIA: S&P Withdraws 'D' Ratings C A Y M A N I S L A N D S TERMOCANDELARIA POWER: S&P Affirms 'BB+' LT ICR, Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Santo Domingo, Caracas Quibble Over Oil Debt DOMINICAN REPUBLIC: US$660MM Collected Despite 40.23% Tax Dodge J A M A I C A JAMAICA PUBLIC: Debt Refinancing Deal Could Lower Electricity Cost JAMAICA: Farmers to Get GBP16.7 Million Boost M E X I C O MEXICO: Journalists' Fear Persists Despite Protection MEXICO: Lawmaker Invites Pres. to Congress After Migration Talks T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Stable Economy Makes Country Vulnerable V E N E Z U E L A VENEZUELA: Guaido Calls High Court Request Invalid VENEZUELA: Maduro Announces 30-Day Electricity Ration Plan VENEZUELA: Trade Unions Condemn Recognition of Guaido as President - - - - - =========== B R A Z I L =========== BRF SA: Fitch Cuts LT IDR & Senior Unsecured Notes to 'BB' ---------------------------------------------------------- Fitch Ratings has downgraded BRF S.A.'s (BRF) Long-Term Foreign and Local Currency Issuer Default Rating and senior unsecured notes to 'BB' from 'BBB-' and revised the Rating Outlook to Stable from Negative. Fitch has also downgraded BRF's National Rating to 'AA+(bra)' from 'AAA(bra)'. The Rating Outlook for the national scale rating was also revised to Stable from Negative. The downgrades reflect poor operating performance, higher leverage and a slower deleveraging pace than initially anticipated due to multiple obstacles faced by BRF during 2018. Fitch projects net debt/EBITDA to trend toward 4.5x by the end of 2019 due to asset sale and the expected improvement of overall EBITDA in 2019. KEY RATING DRIVERS Slower Deleveraging: BRF's deleveraging trajectory was slower than initially anticipated because of poor cash flow generation due to the shutdown of the Russian pork market to Brazilian exporters and the closing of the EU market to BRF during the middle of the year. Both of these issues resulted in a flood of lower value-added products being re-directed to the Brazilian market, which prevented the company from increasing prices to offset the 30% increase in grain prices. The company's Brazilian operations were also hindered by a truckers' strike. Fitch expects BRF's net leverage to improve to 4.5x during 2018 from 6.3x in 2018 due to increased EBITDA and proceeds from asset sales. Fitch's net debt ratios are around 0.5x-0.6x higher than those reported by BRF due to the exclusion of restricted cash and long-term investments, as well as the inclusion of securitized receivables. Asset Sale: BRF initiated various initiatives to improve liquidity and reduce leverage in 2018 and early 2019. The company sold its assets in Argentina, Europe and Thailand as well as its plant in Varzea Grande-MT along with several real estate assets for a total BRL2.2 billion. The price paid for these assets was below the level originally projected by Fitch due to weak macroeconomic conditions in Argentina and the European Union's ban of BRF's exports from Brazil to that region. BRF also securitized receivables through a Receivables Investment Fund (FIDC) for a total amount of BRL875 million and reduced its inventories of frozen raw materials and finished products. Cash proceeds from the majority of the asset sales will be received in 2019. Expect Improved Profitability: Fitch is projecting EBITDA of about BRL3.3 billion to BRL3.4 billion in FYE19 compared with EBITDA of BRL2.4 billion (continuing operation) in 2018. Fitch's projections do not factor in any major external shocks. Fitch estimated that about half of the EBITDA improvement should come from BRF's operations in Brazil due to the improved average price in 2019, fewer discounts, increased penetration of sales toward the foodservice segments, operating efficiencies and moderate raw material cost pressure. BRF increased average price toward the second half of 2018 (7.63 BRL/Kg in 4Q18 versus 7.19 BRL/Kg). The other half of the EBITDA improvement should come from the recovery of BRF international division, notably Asia, and the continuing good performance of the halal segment. An outbreak of the African swine fever virus in China has severely hurt pork production in that country. This will likely result in more protein products including chicken being directed to China during 2019. This has the possibility of increasing prices for BRF's product materially during 2019 and could result in EBITDA being higher than Fitch's base case projections. Trapaca/Carne-Fraca Investigation: BRF's ratings also factor the uncertainty surrounding litigation risks. The company is being investigated concerning alleged misconduct involving its employees in the Trapaca Operation. The main claims involve alleged misconduct relating to quality violations, improper use of feed components, and falsification of tests at certain BRF manufacturing plants and accredited labs. The Trapaca Operation resulted in the removal of 12 BRF plants from the list of facilities approved to export to the European Union. The costs related to Trapaca operations (legal expenses, advisory, idle costs in the plants, inventory losses) was estimated at BRL493 million in 2018. DERIVATION SUMMARY BRF SA's ratings reflect the group's business profile as one of the largest poultry exporters in the world, solid processed foods (71% of volumes) and good brand awareness in Brazil with a vast distribution platform. The company is also a leader in the Halal market with a market of over 41% in the Gulf Cooperation Council (GCC) countries. BRF's ratings are tempered by the company's large exposure to Brazil and high business, execution and sanitary risks associated to the commodity part of the business as well ongoing litigation risks related to the Trapaca Operation. The company has weaker credit metrics compared with other international peers that operate with lower net leverage ratios, such as Tyson Foods Inc. (BBB/Stable), Sigma de Alimentos SA (BBB) and Gruma S.A. de C.V. (BBB), but also JBS S.A. (BB-). The rating also factors the expectation that BRF will deleverage toward 4.5x by FYE19. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - High single-digit revenue growth; - EBITDA between BRL3.3 billion to BRL3.4 billion in 2019; - Net debt/EBITDA trending toward 4.5x in 2019; - No dividends or M&A. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action -- Net leverage at or below 3.5x for a sustained period of time; -- EBITDA margin at or above 10%; -- Positive FCF. Developments That May, Individually or Collectively, Lead to Negative Rating Action -- Net debt/EBITDA above 4.5x on a sustained basis; -- Sustained negative FCF generation; -- EBITDA margin below 8%; -- Weak liquidity. -- A multi-notch downgrade of Brazil would put pressure on BRF's ratings. -- Large legal fines that would put pressure on the company's liquidity and deleverage in the near term could trigger a downgrade. LIQUIDITY Adequate Liquidity: As of Dec. 31, 2018, BRF had BRL5.4 billion of cash and cash equivalents and BRL4.5 billion of short-term debt (mainly trade finance lines). In Fitch's view the liquidity is adequate since bonds are due starting in 2022. For 2019, the company has BRL4.3billion of debt refinancing that will be covered by cash in balance sheet, proceeds from asset sale (BRL2 billion) and the refinancing of bank debt (including Santander and the renewal of rural credit funds). Around 38% of debt is short-term. Approximately 53% of the total debt is foreign-currency denominated. FULL LIST OF RATING ACTIONS Fitch has taken the following rating actions: BRF SA -- Long-Term Foreign Currency IDR downgraded to 'BB' from 'BBB- '; -- Long-Term Local Currency IDR downgraded to 'BB' from 'BBB-'; -- National scale rating downgraded to 'AA+(bra)' from 'AAA(bra)'; -- Notes due 2022, 2023, 2024 downgraded to 'BB' from 'BBB-'. BFF International Ltd -- Senior unsecured notes due 2020 guaranteed by BRF S.A. downgraded to 'BB' from 'BBB-'. BRF GmbH -- Senior unsecured notes due in 2026 downgraded to 'BB' from 'BBB-'. The Rating Outlooks were revised to Stable from Negative. ENERGISA SA: Fitch Affirms LT IDRs at 'BB', Outlook Stable ---------------------------------------------------------- Fitch Ratings has affirmed Energisa S.A.'s Foreign Currency (FC) and Local Currency (LC) Long-Term Issuer Default Ratings (IDRs) at 'BB' and 'BB+', respectively, and its National Scale Rating at 'AAA(bra)'. The Rating Outlook for the corporate ratings is Stable. Fitch has also assigned a 'AAA(bra)' to Energisa's 11th proposed senior unsecured debenture issuance in the amount of up to BRL500 million due 2026. Proceeds will be used for the investment program in Centrais Eletricas de Rondonia S.A. (Ceron) and Eletrobras Distribuicao Acre (Eletroacre). Energisa group's IDRs are based on the low to moderate business risk of the Brazilian power distribution segment, which is partially mitigated by the group's diversification through eleven concessions, being one of the largest players in the market. The rating action also reflects Fitch's expectation that Energisa's current high consolidated leverage ratios for its IDRs will migrate to more appropriate levels starting in 2020. The group's credit profile benefits from strong liquidity based on robust cash balances, manageable debt maturity schedule and proven financial flexibility. Energisa's ratings consider the group's consolidated view and Fitch's expectation that a positive track record with operational efficiency and recovery of deteriorated power distribution companies will allow material improvements to the recent Ceron and Eletroacre acquisitions. The IDRs incorporate moderate regulatory risk for the Brazilian power sector and the currently higher hydrological risk is not negatively impacting the IDRs. The FC IDRs are constrained by Brazil's country ceiling of 'BB', as the company generates all of its revenues in local currency (BRL), with no cash and committed credit facilities abroad. The Stable Outlook for the FC IDRs follows the Stable Outlook for Brazil's 'BB-' sovereign rating. Fitch also expects Energisa will be able to migrate its consolidated leverage to more conservative levels over the next few years, which also supports the Stable Outlook for the LC IDRs and the National Scale ratings. KEY RATING DRIVERS Lower Financial Leverage From 2020: On a consolidated basis and according to the agency's criteria, Fitch estimates that Energisa's financial leverage metrics, measured by total debt/EBITDA and net debt/EBITDA, will migrate to more conservative levels below 4.0x and 3.5x from 2020 on, respectively. In 2019, the first full year with the acquired deteriorated concessions included in the consolidated figures, Energisa should present pressured financial metrics, with gross and net leverage of 6.5x and 5.3x, respectively. Fitch expects the efficiency gains and benefits of the extraordinary tariff review of Ceron and Eletroacre (to be implemented at the end of 2019) will improve consolidated performance by 2020. To Fitch, the current IDRs do not accept any further significant debt-financed acquisitions. Exposure to Distribution Segment Adds Volatility: Energisa's IDRs incorporates its concentration in the distribution segment. Fitch views this segment's risk as low to moderate. Power distribution companies are exposed to the impacts of the macroeconomic environment on demand, delinquency and energy losses, as well as possible impacts from periodic tariff reviews. Although non-manageable costs, such as energy purchase, are fully compensated by tariff, its large weight in the cost structure could have a significant negative impact on cash flow in the short term if there were a strong price variation in one of its components. Fitch views distribution segment risk as higher than the transmission segment's and therefore considers Energisa's investment in the construction of four transmission lines as positive for the group's future business risk, even though it will not be relevant on a consolidated basis. Volatile FCF: Energisa's consolidated FCF should be positively impacted by partial reimbursement of the regulatory asset balance (CVA) regarding non-manageable costs in 2019 and 2020. Fitch's base case scenario considered the collection of the BRL1.6 billion CVA's balance registered at the end of 2018 in two years. Relevant investment program of BRL2.3 billion and damaged consolidated EBITDA, impacted by the consolidation of negative EBITDAs from Ceron and Eletroacre, should pressure Energisa's FCF in 2019. Fitch expects a negative FCF of BRL655 million in 2019, which already incorporates the partial reimbursement of the CVA. The EBITDA of BRL2.3 billion in 2019 should increase to BRL3.3 billion in 2020, considering the recovery in Ceron and Eletroacre to positive EBITDAs. In addition to the CVA collection, this should turn FCF to positive at BRL1.1 billion in 2020. In 2021, the end of the CVA reimbursement and the higher investments related to the transmission lines projects should pressure again the FCF. Fitch estimates a flat to negative FCF in 2021. The agency expects an average capex and dividends distribution of BRL2.2 billion and BRL429 million per year from 2019 to 2021. Positive Operating Performance: Energisa's IDR benefits from the efficient operating performance of its distributors. On a consolidated basis, its EBITDA exceeds the sum of individual regulatory EBITDAs, defined for each one of the nine distribution companies (not considering Ceron or Eletroacre) during the last tariff review. In 2018, the pro forma EBITDA of the nine distributors was BRL2.3 billion, compared to a regulatory EBITDA of BRL1.8 billion. Fitch believes that energy consumption in the company's main concession areas will benefit from economic growth above the national average, mainly due to the agribusiness sector. The agency forecasts average annual energy consumption growth in the group's concession area of 2.6% from 2019 to 2021. In addition, forecasted investments should improve operating efficiencies and benefit the performance of some of the companies in terms of energy losses and quality indicators. In the case of Ceron and Eletroacre, Fitch believes Energisa should succeed on their turnaround as the group had a very positive result when it acquired companies larger than itself in the past. Manageable Debt at the Holding Level: The guarantees provided by the holding company to a large portion of its subsidiaries' loans and debentures, as well as the cross-default clauses, equalize the ratings of the group. In addition, the individual credit profile of the holding company is adequate to the current investment period. The dividend flow of subsidiaries increased in 2018, reaching BRL640 million, due to the increase in Energisa Mato Grosso - Distribuidora de Energisa S.A.'s (EMT) stake to 98% from 67% and to the improvement in the cash flow generation of the mature distributors. The expected BRL415 million equity contribution in the transmission projects and even the investments in Ceron and Eletroacre are manageable within the holding company. The net debt/dividends received ratio is expected to decline gradually from the 4.3 x at the end of December 2018 to below 3.0x from 2021 on. Strategic Sector for Brazil: In Fitch's analysis, the credit profile of agents in the Brazilian electricity sector benefits from their strategic importance to sustain the country's economic growth potential and foster new investments. The federal government has been active in circumventing systemic problems that have impacted the cash flow of companies and led discussions to improve the current regulatory framework in order to reduce the sector's risk. DERIVATION SUMMARY Energisa's financial profile is more aggressive when comparing to its peers in the Latin America, such as Enel Americas S.A. (Enel Americas, BBB+/Stable), Empresas Publicas de Medellin S.A E.S:P. (EPM, BBB/Rating Watch Negative), and Grupo Energia Bogota S.A. E.S.P. (GEB, BBB/Stable). The operating profile of these companies, including Energisa, benefited from significant participation in regulated businesses, which increases revenues predictability. However, Energisa's ratings are capped by the Brazilian country ceiling since it is located only in Brazil, while its peers are more exposed to investment countries, mainly Chile (LC IDR A+/Stable) and Colombia (LC IDR BBB/Stable). Compared to others Brazilian electricity groups with operations predominantly in distribution segment, Energisa operates in a concession area with economic growth above national rates, positively impacted by the agribusiness. Energisa's business profile is better than Light's (IDR 'BB-/Stable), which has presented an aggressive financial profile and inferior operational indicators; it operates in a mature market with service quality indicators below regulatory requirements. KEY ASSUMPTIONS Fitch's key assumptions within the base case for the issuer include: - Average growth in energy consumption in Energisa's concession area of 2.6% on average from 2019 to 2021; - Dividends distribution equivalent to 50% of net income; - Average annual investments of BRL2.2 billion from 2019 to 2021; - Absence of assets sale. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Positive Rating Action - An upgrade in the FC and LC IDRs is unlikely in the near term, as the FC IDR is constrained by the country ceiling of Brazil (BB) and the potential benefit on the LC IDR should only occur after the group starts to deliver a deleveraging process. Future Developments That May, Individually or Collectively, Lead to Negative Rating Action - Gross leverage to EBITDA above 5.0 times from 2020 on; - Net leverage to EBITDA above 3.5 times from 2020 on; - Deterioration in the liquidity profile at the holding and/or the consolidated level; - New projects or acquisitions involving significant amounts financed predominantly by debt; - A downgrade of the sovereign rating triggers a downgrade on the FC IDR. LIQUIDITY High Financial Flexibility: Energisa Group presents strong liquidity and high financial flexibility to finance its investments and refinance its short-term debt. At the end of 2018, adjusted total cash and marketable securities of BRL4.2 billion covered short-term debt of BRL2.8 billion at 1.5x. Under the holding company, cash and cash equivalents of BRL1.5 billion, compared to short-term debt of BRL647 million, represented short-term debt coverage of 2.3x. The acquisition of Ceron and Eletroacre represents a manageable cash flow, comprised of the not material payment of BRL91 thousand to Centrais Eletricas Brasileiras (Eletrobras) and a mandatory capital contribution of BRL493 million already made by the holding company in the fourth quarter of 2018. As of December 2018, the total consolidated debt was BRL16.3 billion, mainly composed by debentures of BRL7.0 billion, Law 4.131 credit lines of BRL3.1 billion and loans from Eletrobras of BRL1.6 billon. The assumed debt related to the acquired companies, of BRL2.9 billion, has a long-term maturity profile at an average low cost. The consolidated total debt average maturity of 5.1 years is also considered positive. FULL LIST OF RATING ACTIONS Fitch has taken the following rating actions: Energisa S.A. -- Foreign Currency IDR affirmed at 'BB'; -- Local Currency IDR affirmed at 'BB+'; -- National Scale Rating affirmed at 'AAA(bra)'; -- 8th Debenture Issuance affirmed at 'AAA(bra)'; -- 9th Debenture Issuance affirmed at 'AAA(bra)'; -- 10th Debenture Issuance affirmed at 'AAA(bra)'; -- 11th Debenture Issuance assigned 'AAA(bra)'. Energisa Mato Grosso - Distribuidora de Energia S.A. -- National Scale Rating affirmed at 'AAA(bra)'; -- 8th Debenture Issuance affirmed at 'AAA(bra)'; -- 9th Debenture Issuance affirmed at 'AAA(bra)'. Energisa Mato Grosso do Sul - Distribuidora de Energia S.A. -- National Scale Rating affirmed at 'AAA(bra)'; -- 8th Debenture Issuance affirmed at 'AAA(bra)'; -- 10th Debenture Issuance affirmed at 'AAA(bra)'; -- 11th Debenture Issuance affirmed at 'AAA(bra)'. Energisa Minas Gerais - Distribuidora de Energia S.A. -- Foreign Currency IDR affirmed at 'BB'; -- Local Currency IDR affirmed at 'BB+'; -- National Scale Rating affirmed at 'AAA(bra)'; -- 10th Debenture Issuance affirmed at 'AAA(bra)'. Energisa Paraiba - Distribuidora de Energia S.A. -- Foreign Currency IDR affirmed at 'BB'; -- Local Currency IDR affirmed at 'BB+'; -- National Scale Rating affirmed at 'AAA(bra)'; -- 4th Debenture Issuance affirmed at 'AAA(bra)'; -- 5th Debenture Issuance affirmed at 'AAA(bra)'. Energisa Sergipe - Distribuidora de Energia S.A. -- Foreign Currency IDR affirmed at 'BB'; -- Local Currency IDR affirmed at 'BB+;' -- National Scale Rating affirmed at 'AAA(bra)'; -- 6th Debenture Issuance affirmed at 'AAA(bra)'. Energisa Sul Sudeste - Distribuidora de Energia S.A. -- National Scale Rating affirmed at 'AAA(bra)'; -- 4th Debenture Issuance affirmed at 'AAA(bra)'. Energisa Transmissao de Energia S.A. -- National Scale Rating affirmed at 'AAA(bra)'; -- 1st Debenture Issuance affirmed at 'AAA(bra)'. Energisa Tocantins - Distribuidora de Energia S.A. -- National Scale Rating affirmed at 'AAA(bra)'; -- 4th Debenture Issuance affirmed at 'AAA(bra)'. The Outlook for all of the corporate ratings is Stable. ODEBRECHT ENGENHARIA: S&P Withdraws 'D' Ratings ----------------------------------------------- S&P Global Ratings withdrew its 'D' ratings on Odebrecht Engenharia e Construcao S.A. (OEC) at its request. At the same time, S&P withdrew its 'D' issue-level rating on OEC's sister company, Odebrecht Finance Ltd.. At the time of the withdrawal, OEC was not current with its financial obligations and discussing restructuring transactions. =========================== C A Y M A N I S L A N D S =========================== TERMOCANDELARIA POWER: S&P Affirms 'BB+' LT ICR, Outlook Stable --------------------------------------------------------------- S&P Global Ratings affirmed its 'BB+' long-term issuer credit rating on Termocandelaria Power Ltd. At the same time, S&P affirmed the 'BB+' issue rating on TPL's existing notes. The stable outlook on TPL reflects S&P's expectations of moderate leverage even during the construction of the additional capacity, resulting in a net-debt-to-EBITDA ratio close to 2.0x for the next two years and negative FOCF this year, but becoming positive in 2020. The ratings affirmation on TPL reflects S&P's forecast that despite the expected investments in one of its subsidiaries, TECAN, TPL will be able to maintain moderate debt to EBITDA of around 2.0x in the next two years. The operating company TECAN won a public tender to collect an additional availability charge after the conversion of its 324 MW open cycle thermal plant into a 566 MW combined cycle plant, which will require investments of around $200 million between 2019 and 2021 and will allow the company to receive additional annual capacity payments of $40 million over the next ten years. Because the group will be exposed to the construction risk associated with this capacity expansion, which S&P hadn't previously expected, it'll monitor how the work advances in the following years because delays could affect the timing of the availability payments that TECAN expects to collect beginning in 2022. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Santo Domingo, Caracas Quibble Over Oil Debt ---------------------------------------------------------------- Dominican Today reports that the country's long-term debt with Venezuela has no arrears and there is no current debt with that country, said Finance minister Donald Guerrero, regarding the country's status with the Petrocaribe oil agreement. Guerrero said US$30 million of the US$160 million debt was paid last year, at the request of Venezuela's president to the president of the Dominican Republic, Danilo Medina, who had accepted a request (Nicolas Maduro) made for an advance on the 20-year debt, of around US$160 million, says the report. That advance was made through compensation with the shipment of medicines to Venezuela, said the official, who insisted that there is no debt pending, as Venezuela Communications minister Jorge Rodriguez recently said they're owed US$240 million. 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$660MM Collected Despite 40.23% Tax Dodge --------------------------------------------------------------- Dominican Today reports that tax evasion in cigarettes and alcoholic beverages has reached 40.23% and though it's been higher in the past, for the authorities it's vital to increase it on some items that posted an important level, of RD$33 billion (US$660 million) collected last year. "It's an important tax," said Internal Taxes (DGII) director Magin Diaz, in a conference of the Fiscal Control and Traceability System for Alcoholic Beverages and Cigarettes, according to Dominican Today. With the mechanism, which he expect to fully operate by year end, tax evasion in alcoholic beverages and cigarettes will be reduced as much as 8 percentage points after the first year of validity, "which would generate an additional collection of RD$4.0 billion," he said, the report notes. "The government is making use of all the information we have available" to attack the illicit alcohol and cigarettes, and one of the measures is the traceability system that will allow the specific identification of each product from the production or import process until it reaches the consumer's hands. "The latter can even determine if cigarettes or alcoholic beverages are original, through a mobile application," he added, notes the report. 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. ============= J A M A I C A ============= JAMAICA PUBLIC: Debt Refinancing Deal Could Lower Electricity Cost ------------------------------------------------------------------ RJR News reports that President and Chief Executive Officer of the Jamaica Public Service Company (JPS) Emmanuel DaRosa, said the debt refinancing deal with Sagicor paves the way for lower electricity generation costs. He says this will trickle down to JPS customers light bills, according to RJR News. "This was a very important deal for JPS in terms of brining the greatest efficiency to our customers and operations. With this refinancing of US$180-million , we are able to save our customers US$5-million per year, which is going to be a tremendous benefit to our customers in terms of helping to stabilize the cost of electricity. Very early on we saw that Sagicor was willing to work with us and be flexible to working with us and we found a willingness on the part of Sagicor to work with us on this particular deal," the report quoted Mr. DaRosa as saying. In February, the JPS refinanced US$180 million in debt or roughly half of its borrowings, arising from a deal brokered by Sagicor Investments, the report notes. Nearly two-thirds of the funding was in the form of Jamaican currency and US dollar-denominated bonds, while 66 million US dollars was in the form of syndicated loans raised through Sagicor Bank Jamaica, the report adds. JAMAICA: Farmers to Get GBP16.7 Million Boost --------------------------------------------- RJR News reports that Jamaican farmers will be getting a GBP16.7 million boost to help them increase productivity and gain greater market access. This has been made possible through a grant from the United Kingdom Department for International Development under the UK Caribbean Infrastructure Partnership Fund which is administered by the Caribbean Development Bank (CDB), according to RJR News. At its meeting, the Board of Directors of CDB agreed to the grant for the Southern Plains Agricultural Development Project, the report notes. The project will target 795 hectares of government-owned lands which will be leased to farmers in the communities of Amity Hall in St. Catherine and Parnassus in Clarendon, the report relays. It will provide essential agricultural production and market infrastructure and marketing systems for the farmers, the report adds. As reported in the Troubled Company Reporter-Latin America on Sept. 27, 2018, S&P Global Ratings revised its outlook on Jamaica to positive from stable. At the same time, S&P Global Ratings affirmed its 'B' long- and short-term foreign and local currency sovereign credit ratings, and its 'B+' transfer and convertibility assessment on the country. =========== M E X I C O =========== MEXICO: Journalists' Fear Persists Despite Protection ----------------------------------------------------- EFE News reports that Yohali Resendiz, a Mexican journalist, said, "They don't have to kill us to deter us." Ms. Resendiz--despite being protected by the state--lives in fear when she sees that protection protocols are usually implemented only after it's too late, according to EFE News. EFE News reports that there are currently 498 human rights defenders and 292 journalists in the Mexican government's protection program. And even President Andres Manuel Lopez Obrador's administration has acknowledged shortcomings in the program, the report relays. "We are analyzing different tools that allow us to identify risk situations, to serve people even though they are not part of the program," Human Rights Undersecretary Alejandro Encinas said, the report notes. At least seven journalists have been killed since the leftist Lopez Obrador took office on Dec. 1. Ms. Resendiz was investigating a case of child sexual abuse in 2016 when suddenly she began receiving death threats on social media, the report discloses. At the same time, personal details about her life were made public and someone broke into her vehicle to leave a note that read "You are going to die," she added. It was then that she agreed to receive protection from the government, starting with being equipped with a so-called "panic button" device which sends out an alert with her current location when pressed, in addition to a direct communication link to security personnel, the report discloses. At the beginning of the process, officials examined her home for possible ways that security could be improved, but that was of little use since six weeks ago someone managed to break into her room through the roof while three members of her family were inside the "secured" home, the report relays. Although officials did come to her house after she reported the incident, Ms. Resendiz has not heard back from the authorities since then, the report notes. Frustrated with her current situation and the lack of response from the government, she complained about the system failures that have put her life at risk and the "very serious" fact that she has been dropped from the program after going for six months without any reported incidents, the report says. "At the beginning, I had access to a vehicle that allowed (police) to know where I was 24 hours a day. You lose your privacy but in the end, you accept that to avoid getting into a more serious situation," she said, the report says. Ms. Resendiz "at least" wants the government to open up the program to teach all journalists in Mexico how to take care of themselves, the report relays. She argues that journalists and activists should not have to experience risky situations to get put into the protection program, given that in many situations authorities act only when it's already too late or the victims have experienced situations that "change your life radically," the report notes. In many cases, the death threats and other intimidating tactics accomplish the perpetrators' purpose: to hamper journalists and human rights activists in doing their jobs, the report relays. Ms. Resendiz, for example, stopped writing for a few months about issues related to child sexual abuse and now every time she writes about a topic she thinks about the consequences that her reporting could have for her safety and is always reviewing whether any of her personal data could have been leaked onto the Web, the report adds. MEXICO: Lawmaker Invites Pres. to Congress After Migration Talks ---------------------------------------------------------------- Patricia Zengerle at Reuters reports that U.S. Representative Eliot Engel invited Mexican President Andres Manuel Lopez Obrador to visit the House Foreign Affairs Committee in Washington, following a meeting with him and other lawmakers in Mexico City. An aide to Engel, the Democratic chairman of the House of Representatives Foreign Affairs Committee, said the Foreign Affairs panel would hold a hearing for Lopez Obrador, according to Reuters. Lopez Obrador underscored the importance of maintaining a close, respectful relationship with the United States to find solutions to shared challenges, his government said in a statement, the report notes. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Stable Economy Makes Country Vulnerable ---------------------------------------------------------- Trinidad Express reports that the US State Department says Trinidad and Tobago's geographic location, generally stable economy, and developed financial systems make it vulnerable to money laundering. Washington said the oil-rich twin-island republic last year had done much to improve its anti-money laundering (AML) region, one year after developing an action plan to address deficiencies noted by international experts, according to Trinidad Express. "Despite substantial and continuing efforts to reform the criminal justice system, a lengthy judicial process can still mean years before criminal prosecutions are resolved. While the number of persons charged with money laundering-related offenses continues to increase, there has not yet been a stand-alone conviction for money laundering," the US State Department said in its 2019 International Narcotics Control Strategy Report, the report notes. It said continued legislative and institutional reforms, including adequate resources and implementation, are needed to ensure the proper enforcement of Trinidad and Tobago's AML regime, the report adds. ================= V E N E Z U E L A ================= VENEZUELA: Guaido Calls High Court Request Invalid -------------------------------------------------- EFE News reports that the head of Venezuela's opposition-controlled Parliament, Juan Guaido, who has been recognized as the country's legitimate president by more than 50 nations, said that the Supreme Court's request to lift his parliamentary immunity lacks validity. "There's no lifting of immunity of any kind because . . . (such a request) is invalid," the opposition leader told reporters at the close of a public event in downtown Caracas a few hours after the high court's decision became known, according to EFE News. 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'. VENEZUELA: Maduro Announces 30-Day Electricity Ration Plan ---------------------------------------------------------- VOA News reports that Venezuelan President Nicolas Maduro, in an address on state television, disclosed a 30-day plan to ration electricity. The rationing plan, Maduro said, will also help the government deal with the country's water and communications infrastructure, according to VOA News. Residents fed up with the recurring electrical blackouts protested by banging on pots, burning garbage in the streets and shouting curses against President Maduro, the report relays. Maduro said schools would remain closed and the length of the workday will be cut to conserve power during the 30-day period, the report discloses. "No one can put up with this," a Caracas housewife complained as she tried to buy a chicken but discovered the bank machines didn't work. "There's been no water since, you can't call by phone, we can't pay with cards or even eat," she added. Another homemaker said she can't refrigerate food and said when her appliances break, it's impossible to buy a replacement, the report discloses. Maduro has blamed the blackouts on U.S. sabotage, the report notes. Opposition leader Juan Guaido says government neglect and mismanagement are responsible, the report relays. "They brought the electrical system to a collapse because they are corrupt and now they can't resolve it because they are incapable," he added, notes the report. Guaido used his constitutional authority as head of the National Assembly to declare the Maduro presidency illegitimate, saying he was re-elected in December in a fraudulent vote, the report notes. The United States and about 50 other countries recognize Guaido as president. Washington has imposed numerous sanctions against the government, but Maduro is refusing to step down, the report adds. 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'. VENEZUELA: Trade Unions Condemn Recognition of Guaido as President ------------------------------------------------------------------ Ivar Andersen at Caribbean360.com reports that more than 60 countries have recognized Juan Guaido as legitimate interim president. But among international trade unions, support for Venezuelan self-determination is resolute, according to Caribbean360.com. On January 23, the leader of the National Assembly, Guaido, declared himself interim president of Venezuela. His claim on the presidency was immediately recognized by the United States who, through Secretary of State Mike Pompeo, called for the world to "pick a side," the report notes. Caribbean360.com relays that a little over 60 countries have followed in the footsteps of the United States, according to information from Al Jazeera. On February 4, Sweden joined the list. "Sweden supports and acknowledges Juan Guaido as the leader of the National Assembly and, in accordance with the country's constitution, his attempts to serve as interim President of Venezuela, now responsible for making sure free and fair democratic elections will be called," said Margot Wallstrom, Minister for Foreign Affairs, in a statement that stressed the importance of solving the crisis peacefully, the report notes. The international trade union movement on the other hand, has chosen a different approach, the report notes. The report discloses that on the same day as Guaido declared himself president, the Trade Union Confederation of the Americas (TUCA), released a harsh statement: "We condemn the unilateral decision adopted . . . by a group of governments of the region, notably led by the USA, to ignore the legitimacy of the government of President Maduro and to recognize the self-proclaimed 'president of the transition', representative Juan Guaido." TUCA is calling upon the government of Venezuela and the opposition to seek out dialogue, and for the international community to support this, but also states that the support for Guaido "is a grave act of interference and intervention in the internal affairs of a sovereign country, setting back the region to times we thought belonged to the past, in which coups d'etat and military dictatorships were instigated". Many national trade union confederations have taken the same position. South Africa's largest confederations Cosatu and Saftu condemn what they both call a "coup attempt". The report relays that trade unions in Canada are protesting the government's decision to recognize Guaido. The trade union confederation CLC writes that it supports "the Venezuelan people's right to peaceful self-determination". The country's largest trade union, the Canadian Union of Public Employees, states that Canada "has chosen to side with Donald Trump and US foreign policy", while the Canadian Union of Postal Workers calls the Canadian standpoint "deeply disturbing" and "in direct violation of international law," the report notes. The global union IndustriALL condemns the acknowledgement of Guaido and "also rejects the external boycott, which has clear political and economic motives that violate Venezuela's sovereignty," the report relays. The relationship between the International Trade Union Confederation (ITUC) and Venezuela has been tense for some time, due to the fact that the country's leadership doesn't acknowledge ITUC's affiliate ASI. But the ITUC also opposes foreign interference in the matter of the presidency, the report discloses. "Concerning the Presidency of Venezuela, that is a matter for the people of Venezuela to decide, not any other entity outside of the country," says Director of Communications Tim Noonan to Arbetet Global, the report says. The ITUC also refers to its statement on Venezuela, which was adopted by the organisation's world congress in December last year, before Guaido's challenge, the report notes. "The ITUC supports its affiliates in Venezuela in their struggle to strengthen democracy and dialogue, and the workers and people of Venezuela in dealing with the enormous difficulties that they are experiencing due to the economic blockade imposed on Venezuela," the report notes. The Swedish Trade Union Confederation, LO, is in favor of humanitarian aid and UN led reconciliation efforts. The international department stresses that the LO does not take sides in the question of the presidency, but does take a swing at foreign involvement, the report discloses. "The unstable political situation is worsened by superpowers like China, the United States, and Russia trying to manoeuvre the political map," says Asa Tornlund, union officer responsible for South America, the report adds. 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'. ********* 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 * * *