/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/190429.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 Monday, April 29, 2019, Vol. 20, No. 85 Headlines B R A Z I L B3 SA: Moody's Rates Proposed BRL1.2 Billion Unsec. Debenture 'Ba1' LIGHT SA: Fitch Alters Outlook on 'BB-' LT IDRs to Negative C H I L E GUACOLDA ENERGIA: Fitch Cuts LT IDR to BB & Alters Outlook to Neg. C U B A CUBA: New Entrepreneurs Uneasy About Trump's Latest Measures D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: CNS May Propose Minimum Wage Increase DOMINICAN REPUBLIC: Marks 1-Yr. Diplomatic Ties With China P U E R T O R I C O AMERICAN PARKING: Case Summary & 20 Largest Unsecured Creditors BAILEY'S EXPRESS: Plan Admin Taps Adrienne Woods as Counsel CAPARRA HILLS: Fitch Affirms 'BB' IDR & Alters Outlook to Stable PUERTO RICO: Ties With Dominican Republic to Increase Trade SOLUTIONS BY DESIGN: Taps Rodriguez Perez as Accountant T R I N I D A D A N D T O B A G O CL FIN'L: Shareholder Wants Sale Stayed, Seeks Finc'l Statements U R U G U A Y FUCEREP: Fitch Affirms 'B-' Issuer Default Ratings, Outlook Stable V E N E Z U E L A PETROLEOS DE VENEZUELA: Power Generator Activated After Blackouts X X X X X X X X [ ] BOND PRICING: For the Week April 22 to April 26, 2019 - - - - - =========== B R A Z I L =========== B3 SA: Moody's Rates Proposed BRL1.2 Billion Unsec. Debenture 'Ba1' ------------------------------------------------------------------- Moody's America Latina has assigned a Ba1 global scale and Aaa.br Brazilian national scale rating to B3 S.A. -- Brasil, Bolsa, Balcao's proposed local currency debenture issuance. The debentures will be issued in Brazilian reals with a target issue amount of BRL1.2 billion and the proceeds of the issue will be used for general corporate purposes. The planned maturity of the debentures is 30 years, although they are subject to a scheduled renegotiation in their terms and conditions after three years. Assignments: B3 S.A. -- Brasil, Bolsa, Balcao: - Global local currency unsecured debenture rating of Ba1 - Brazilian national scale local currency unsecured debenture rating of Aaa.br RATINGS RATIONALE B3 S.A. -- Brasil, Bolsa, Balcao's (B3) global scale and national scale unsecured debenture rating of Ba1 and Aaa.br respectively stem from B3's long term senior unsecured and issuer ratings of Ba1. The company's Ba1 issuer rating is supported by its strong financial performance, high pretax margins and strong cash flow generation. In 2018, B3 reported pre-tax income of BRL 2.4 billion (USD 644 million), an increase of over 50% versus a year earlier, illustrating its increased scale, as well as pre-tax margin of 43.7%, up by 500 basis points from a year earlier. The company's debt coverage ratio, as measured by Moody's calculation of retained cash flow minus capex relative to total debt also rose to 48.2% from 36.4% in 2018. B3's diversified business model, a result of the 2017 merger between BM&F Bovespa S.A. and Cetip S.A., gives it significant operating leverage, and will continue to drive strong financial performance particularly as stronger economic growth and low interest rates will bolster B3's pro-cyclical businesses, particularly cash equities trading, clearing and settlement, fixed income securities trading, as well as registration of car and real estate financing liens. The debenture issuance is in line with the company's 2019 guidance for leverage, as measured by Total debt / EBITDA of 1.5x, which was announced in conjunction with its 2018 results. Based on 2018 results, Moody's estimates that B3's leverage will rise from 1.2x to around 1.5x if the company issues BRL 1.2 billion of debentures. While the debt issuance will also lead to a deterioration in its interest coverage ratio, as measured by EBITDA to interest expense, the rating agency notes that the company's ratios pro forma for the debt issuance will remain commensurate with a Ba1 global scale issuer rating. WHAT COULD CHANGE THE RATINGS UP/DOWN The national scale debenture ratings are already at the highest level on the national scale for Brazil. A downgrade in B3's global and national scale ratings could be driven by a deterioration in the company's financial profile, which, in turn, could be triggered by a decrease in its operating margin that substantially reduces the company's debt-service capacity and leads its leverage to increase significantly or remain at much higher levels. Negative pressure on the ratings could also arise from a deterioration in the company's risk management capabilities and execution effectiveness, resulting from insufficient investment in technology or an unexpected increase in market volatility that threatens to overwhelm the company's safeguards. A downgrade of Brazil's sovereign rating could have negative implication for B3's ratings. LIGHT SA: Fitch Alters Outlook on 'BB-' LT IDRs to Negative ----------------------------------------------------------- Fitch Ratings has affirmed the ratings for Light S.A. and its wholly owned subsidiaries Light Servicos de Eletricidade S.A. and Light Energia S.A., including the companies' Foreign Currency and Local Currency Long-Term Issuer Default Ratings at 'BB-' and National Scale Ratings at 'A+(bra)'. The Rating Outlook for the corporate ratings was revised to Negative from Stable. The Negative Outlook reflects Light group's challenging scenario to improve its operational performance and present its consolidated credit metrics in line with the current 'BB-' IDRs. Fitch believes the current high adjusted gross and net leverage ratios will remain above 5.5x and 5.0x until 2020, respectively, even considering some strengthening of the operating cash generation over the next years. The group has been impacted by an unfavorable scenario in the concession area of its most significant subsidiary, the energy distribution company Light Sesa, in the Metropolitan Region of the State of Rio de Janeiro, mainly in terms of energy losses and delinquency, as well as some frustration on the recovery of energy demand. Light group's ratings reflect its low to moderate business risk profile resulting from its exclusive electricity distribution rights in the energy distribution segment, combined with assets on the power generation segment at Light Energia adding to cash flow predictability during favorable hydrological conditions and risk dilution. Fitch's analysis also considered the group's consolidated sound cash position and financial flexibility to manage its debt maturities, and an expected slightly positive FCF. The IDRs reflect a consolidated view of Light group's credit profile, due to the existence of cross-default clauses in some debts. The analysis does not incorporate an expected change in its shareholder structure. Despite the plan of its main shareholder, Companhia Energetica de Minas Gerais (Cemig; FC and LC IDRs B+/Outlook Positive), to sell its stake in Light, the timing and final outcome are uncertain. Fitch's analysis considered the Brazilian energy sector's moderate regulatory risk and that hydrological risk exposure, inherent to the sector, is above the historical average and currently pressures the group's consolidated cash flow and financial profile. KEY RATING DRIVERS High Leverage Metrics: Light has the challenge to bring its consolidated financial leverage metrics to levels more consistent with its current IDRs. According to Fitch's calculations, the group's adjusted total debt/EBITDA should remain above 5.0x in the next couple of years, with 6.6x in 2019 and 5.7x in 2020, with adjusted net leverage flat at 5.5x in 2019 and reducing to 5.0x in 2020. As of Dec. 31, 2018, adjusted net debt/EBITDA was 5.5x, while adjusted total debt/EBITDA was 6.6x. Negative Performance at the Distribution Segment: Light Sesa would need to reach greater operational efficiency and profitability in order to approach regulatory parameters. Even while incorporating the gains obtained from the tariff revision, which boosted recent results, the distributor's BRL1.1 billion EBITDA in 2018 was significantly below the regulatory benchmark of BRL1.6 billion. Energy losses and delinquency remain important challenges for Light Sesa, and Fitch does not believe the company will achieve significant improvement in the near future. Energy losses of 23.95% of total energy purchased in 2018 represented 330 bps higher than the regulatory target of 20.62% and a negative impact on EBITDA at the range of BRL300 million - BRL400 million. Positively, Fitch expects some recovery in energy consumption within the distributor's concession area, with 2.0% increase in 2019 and 2.8% in 2020 after reductions in the last years. Generation Benefits Credit Profile: Light group's operating cash flow generation and business profile benefit from the energy generation segment, which represented approximately 10% and 25% of the group's consolidated revenue and EBITDA in 2018, respectively. Light Energia's results have higher predictability than the energy distribution segment under normal hydrological scenarios as the assured energy of its hydroelectric plants is largely commercialized with large industrial clients typically through medium-term contracts. The company will still be faced with managing the volume of its energy available for sale to avoid significant exposure coming from bad hydrological conditions in the country. The annual Generation Scaling Factor should remain below 1.0 over the next years with 0.82 and 0.85 in 2019 and 2020, respectively, according to Fitch's projections. This would reduce Light Energia's assured energy to meet its sales contracts. The company has about 15% of its energy available in 2019, which mitigates this exposure. Supported by a court decision, Light Energia has not been carrying out the settlement of energy purchases made at the Electric Energy Trading Chamber (CCEE) to comply with the contractual obligations for energy delivery, with BRL515 million on a net liability at the end of 2018. In its base case scenario, Fitch expects this payment to occur in two years with 50% each in 2019 and 2020. FCF to Turn Slightly Positive: Fitch believes the group will generate positive FCF from 2019 on, with BRL66 million in 2019 and an average of BRL60 million from 2020 to 2022. Cash flow from operations (CFFO) is expected to benefit from the return through tariff of a significant balance of non-manageable costs at Light Sesa. The base case scenario incorporates the reimbursement of BRL710 million in net regulatory assets reported in December 2018 over the 2019-2020 period. However, Light Energia's payment to CCEE should partially offset this cash inflow. The group is expected to distribute minimum dividend payout of 25% while the annual average investments of about BRL800 million, which is important to improve the group's operating efficiency in the distribution segment, should pressure the FCF. The group's consolidated EBITDA is expected to remain flat in 2019 at BRL1.6 billion and to increase to BRL1.7 billion - BRL2.0 billion during 2020-2022. Balanced Business Profile: The group's credit profile benefits from its significant position and asset base in the Brazilian electric energy sector. Through Light Sesa, the group serves 4.5 million customers and is the country's seventh-largest electricity distribution company, a segment characterized by a high regulation and low competition. This segment accounted for approximately 85% and 70% of the group's consolidated net revenue and EBITDA, respectively, in 2018. With 1.0 GW of installed capacity, a medium size among the country's main private players, the generation segment contributes to greater diversification of operating cash generation and to the dilution of operating risks, which are more present in the distribution segment. Strategic Sector for the Country: In Fitch's analysis, the credit profile of agents in the Brazilian electricity sector benefits from its strategic importance to sustain the country's economic growth potential and foster new investments. The federal government has acted to circumvent systemic problems that impact the cash flow of companies and is guiding discussions to improve the current regulatory framework in order to reduce sector risk. DERIVATION SUMMARY Light's IDRs are lower than other electric energy groups in 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), Grupo Energia Bogota S.A. E.S.P. (GEB, BBB'Stable) and AES Gener S.A. (AES Gener, BBB-/Stable). Light's business risk is higher, reflecting its company operating environment that is fully concentrated in Brazil (Republica Federativa do Brasil, BB-/Stable), while its peers are more exposed to investment countries, mainly Chile (A+/Stable) and Colombia (BBB+/Stable). Furthermore, Light's business profile is more concentrated in energy distribution than those companies, and it has higher leverage. Compared to a Brazilian electricity group with operations predominantly in the distribution segment, Light's less diversified asset base, lower operational performance and more aggressive financial profile explain the one notch difference with Energisa group's IDR (Local Currency IDR 'BB+' and Foreign Currency IDR 'BB', both with a Stable Outlook). KEY ASSUMPTIONS The main assumptions of Fitch's base scenario for the issuer include: - Light Sesa's demand increase of 2,0% in 2019 and average 2.6% in the next three years; - Light Energia's disbursement of BRL515 million in two installments in 2019-2020 to liquidate debt at CCEE; - Average consolidated capex of BRL798 million during 2018-2021; - Light Sesa's recovery of BRL710 million in non-manageable costs in 2019-2020; - Dividend payout of 25%; - No asset sale. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Positive Rating Action: -- Improvements in the distribution segment operating performance; -- Adjusted net leverage consistently equal or less than 3.0x; -- Adjusted total leverage consistently equal or less than 4.0x. Future Developments That May, Individually or Collectively, Lead to Negative Rating Action: -- Deterioration of the company's liquidity profile; -- Adjusted net leverage consistently above 4.0x; -- Adjusted total leverage consistently above 5.0x. LIQUIDITY Sound Liquidity Profile: Light group's credit profile benefits from a significant liquidity position and a more lengthened debt maturity schedule after the BRL3.7 billion debt raised in 2018 (BRL2.3 billion from the five-year Eurobond and the BRL1.4 billion from the six-year Credit Rights Investment Fund [FIDC]), which strengthened the short-term debt coverage ratios. At the end of 2018 the group's significant short-term debt of BRL2.0 billion was somewhat mitigated by cash and equivalents of BRL1.7 billion. Light group's liquidity was negatively affected in 2018 by Light Sesa's disbursements from the mismatch between non-manageable costs and the amount collected by the distributor through tariff. According to Fitch's projection, the group is not expected to increase its total debt over the next years. The proceeds from Light Sesa's new debenture issuance, in the amount of BRL750 million and to be raised until May 2019, will be used in debt refinancing and will lengthen the debt profile. The debenture will be issue in three series with final maturities in 2022, 2024 and 2025. At the end of 2018, the total consolidated adjusted debt of BRL10.5 billion was mainly comprised of debentures issuances (BRL4.4 billion), Eurobonds (BRL2.3 billion), FIDC (BRL1.4 billion) and Law 4.131 credit lines (BRL819 million). The off-balance sheet debt was BRL819 million, related to guarantees provided to non-consolidated companies. FULL LIST OF RATING ACTIONS Fitch has affirmed the following ratings: Light -- Long-Term Foreign Currency IDR at 'BB-'; -- Long-Term Local Currency IDR at 'BB-'; -- Long-Term National Scale rating at 'A+(bra)'. Light Sesa -- Long-Term Foreign Currency IDR at 'BB-'; -- Long-Term Local Currency IDR at 'BB-'; -- USD400 million Eurobonds due 2023 guaranteed by Light at 'BB-' -- Long-Term National Scale rating at 'A+(bra)'; -- BRL470 million senior unsecured debentures due 2026 at 'A+(bra)'; -- BRL1,600 million senior unsecured debentures due 2023 at 'A+(bra)'; -- BRL400 million senior unsecured debentures due 2022 at 'A+(bra)'. Light Energia -- Long-Term Foreign Currency IDR at 'BB-'; -- Long-Term Local Currency IDR at 'BB-'; -- USD200 million Eurobonds due 2023 guaranteed by Light at 'BB-'; -- Long-Term National Scale rating at 'A+(bra)'; -- BRL425 million senior unsecured debentures due 2019 at 'A+(bra)'; -- BRL30 million senior unsecured debentures due 2026 at 'A+(bra). The Outlook for the corporate ratings was revised to Negative from Stable. ========= C H I L E ========= GUACOLDA ENERGIA: Fitch Cuts LT IDR to BB & Alters Outlook to Neg. ------------------------------------------------------------------ Fitch Ratings has downgraded Guacolda Energia S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings to 'BB' from 'BBB-'. The Rating Outlook is revised to Negative from Stable. Guacolda's ratings downgrade reflects the weaker parent relationship with AES Gener, its declining contractual position, recontracting risk and higher expected leverage due to decreasing EBITDA. The Negative Outlook reflects Fitch's estimates that nearly 25% of its current contracts will expire in 2020 coinciding with USD100 million term loan due as well. Fitch believes the company has higher recontracting risk in the 2020-2021 and will face stiffer competition as off-takers are more inclined to contract energy from cleaner energy sources. KEY RATING DRIVERS Weaker Parent Relationship: Fitch believes the parent subsidiary linkage between AES Gener and Guacolda has weakened and views Guacolda as a stand-alone entity. Fitch believes AES Gener views Guacolda as a non-strategic entity, evidenced by its decarbonization strategy (Greentegra) and focus on Alto Maipo. Additionally, AES Gener's reported USD158 million impairment cost suggesting a weaker contribution within AES Gener's portfolio of assets. The company announced the impairment originated because the present value of the cash flows of Guacolda is expected to be less than the book value of its assets. Declining Contractual Position: Guacolda is an efficient and competitive coal-fired generation company with marginal cost of approximately 35MWh-40MWh in 2018. Fitch expects the company's contractual position to remain stable in 2019 compared to 2018, with nearly 25% of its non-regulated capacity set to expire in 2020. The company's contracts are with investment-grade credit counterparties in the mining and energy distribution sectors. The contracts are balanced with its efficient generation capacity and possess long-term energy price indexation mechanisms to reduce exposure to price fluctuations. Re-contracting Risk: Guacolda's shareholder and operator, AES Gener has a strong track record of recontracting capacity, but faces challenges recontracting its coal capacity (excluding Cochrane and Angamos), as off-takers are more inclined to contract energy from cleaner energy sources. Fitch believes Guacolda will probably recontract its expiring contracted capacity with shorter-term PPA's. Migrating Energy Matrix and Regulatory Environment: Fitch believes Guacolda will be affected in the long term by the government's plan to phase-out coal generation completely by 2030-2050 and the connection of the north and central transmission grids, which Fitch estimates will put downward pressure on contract and spot prices. Until 2020, Guacolda is protected from this risk due to a combination of its strong contractual positions and coverage ratios supported by experienced parents, but Guacolda will be more exposed to regulatory changes affecting coal generators, as its contracts expire and is more exposed to the spot market. Increasing Leverage: Fitch believes the company's leverage will be 3.8x on average in 2019 and 2020, and increase to 5.4x in 2021-2022 due to lower EBITDA, which Fitch estimates will average USD92 million, a 36% decrease compared to Fitch's estimated average EBITDA for 2019-2020 of nearly USD145 million. The decrease in EBITDA is explained by the decreasing contractual position of the company. Fitch estimates FFO interest coverage will average 4.2x between 2019-2022, and Guacolda will repay the USD100 million maturing loan in 2020. Capex Program and Dividends: Fitch estimates assume annual capex of USD11.4 million per year from 2019 through 2022, or USD15,000 per MW, and Guacolda will pay 100% of previous year's net income previous in dividends through from 2020-2022. Fitch assumes shareholders will adjust dividends in 2019 to repay debt maturing in 2020. DERIVATION SUMMARY Guacolda's rating downgrade reflects the weaker parent relationship with AES Gener, its declining contractual position, recontracting risk and higher expected leverage due to decreasing EBITDA. The Negative Outlook reflects Fitch's estimates that nearly 25% of its current contracts will expire in 2020 coinciding with USD100 million term loan due as well. Fitch expects gross leverage to be 4.0x in 2019, resulting in a more stressed capital structure than peers Engie Energia Chile and Colbun. In terms of financial risk, Colbun's credit profile is quite similar to Engie, both consistent in the 'BBB' rating level with leverage in the range of 2.8x measured as debt to EBITDA and significantly stronger than Guacolda's or AES Gener's capital structure. Engie is currently in an aggressive expansion phase, which adds some risks. This is similar to Colbun's more aggressive growth through potential acquisition expansions. Guacolda's ratings are the lowest compared to its Chilean peers: AES Gener (BBB-/Stable), Enel Generacion Chile (BBB+/Positive), Engie Energia Chile S.A. (BBB/Stable) and Colbun (BBB/Stable) as a result of the company's relatively weaker financial profile, though they carry similar business risks. Guacolda's consolidated gross leverage, which is expected to 4.0x in 2019 and average 4.8x from 2020-2022, is higher than that of AES Gener at 4.0x, Enel Generacion, which consistently reports gross leverage below 2.0x, and Engie and Colbun with leverage in the mid-2x range. Unlike its Chilean electricity GenCos, Guacolda's credit profile does not benefit from having a diverse generation portfolio, being exclusively coal power plants and faces material expiration of its contractual position. KEY ASSUMPTIONS Fitch's Key Assumptions Within ItsRating Case for the Issuer - Annual net generation on average of nearly 4,000GWh/year during the next five years; - Average contracted position of 5.5GWh 2019 and 2020 and average of 3.6GWh thereafter; - Variable costs on average of USD35 MWh-USD40 MWh - Repay USD100 million term loan maturing in 2020; - Dividend payment in 2019 adjusted down to USD13 million to prepay 2020 loan; - Dividend payments in 2020-2022 equal to 100% of previous year's annual net income; - Annual Capex of USD11.4 million between 2019-2022 or USD 15,000 per MW. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action - Improved long-term contracted position with strong off-takers and increased remaining life of contracts; - Although a positive rating action is not expected in the foreseeable future, Fitch will view positively a consolidated debt-to-EBITDA ratio of 3.5x or lower; - FFO fixed-charge coverage of 4.5x or above on a sustained basis; - Financial support from shareholders. Developments That May, Individually or Collectively, Lead to Negative Rating Action - A material and sustained deterioration of credit metrics reflected in total consolidated debt/EBITDA of 4.5x or above on a sustained basis could result in a negative rating action; - FFO fixed-charge coverage of 3.5x or below; - Pressure from shareholders to increase dividends; - Increasing its exposure to non-investment-grade countries. LIQUIDITY Adequate Liquidity Position: As of Dec. 31, 2018, Guacolda had USD34.8 million in cash and equivalents, which covers 2019 interest expense of USD29.1 million. Fitch expects Guacolda will repay the USD100 million term loan maturing in 2020 with cash flows and cash on hand. Thereafter, Guacolda's debt profile will consists solely of its 4.56% USD500 million senior unsecured notes due April 2025. FULL LIST OF RATING ACTIONS Fitch has downgraded the following ratings: Guacolda Energia S.A. -- Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'BB' from 'BBB-'; -- International senior unsecured bond ratings to 'BB' from 'BBB-'; The Rating Outlook is revised to Negative from Stable. ======= C U B A ======= CUBA: New Entrepreneurs Uneasy About Trump's Latest Measures ------------------------------------------------------------ EFE News reports that recent sanctions and penalties announced by the United States have started to sow fear in Cuba and caused alarm among the Communist-ruled island's burgeoning community of entrepreneurs, who fear those measures will have a debilitating impact on their businesses. In a bid to tighten the squeeze on a small but resilient foe, US President Donald Trump's administration says it will further restrict non-family travel to the Caribbean nation and limit the amount of remittances Cuban-Americans can send to relatives on the island to $1,000 per person per quarter, according to EFE News. As reported in the Troubled Company Reporter-Latin America on Dec. 12, 2017, Moody's Investors said that the credit profile of Cuba (Caa2 stable) reflects significant credit challenges due to diminished growth prospects as rapprochement with the United States (Aaa stable) stalls. Other credit weaknesses constraining Cuba's creditworthiness include limited access to external financing, a high dependence on imported goods and, most importantly, a lack of data transparency. Structural inefficiencies directly hinder economic growth. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: CNS May Propose Minimum Wage Increase --------------------------------------------------------- Dominican Today reports that if there is no agreement between the union sector and employers in the discussion about the wage increase, the National Salary Committee (El Comite Nacional de Salarios or CNS) will propose an increase in the minimum wage of the non-sectorized sector, the CNS director Felix Hidalgo warned. The tripartite meeting of the CNS again ended without an agreement between the parties, since the businessmen did not submit any proposal and insisted on reclassifying the companies before increasing salaries, an action that was rejected by the trade unionists, so the CNS postponed the discussion, according to Dominican Today. "In the absence of a harmonious agreement, the CNS will assume the responsibility it has always assumed, every two years, to suggest to the parties a specific salary increase. It is very possible that next week the salary issue will be decided because we are not going to give more delays," Mr. Hidalgo emphasized. Given the submission of the Federation of Industrial Associations (FAI) to suspend all knowledge of minimum wages until there is a reclassification of companies, Mr. Hidalgo noted that the CNS has a specific mandate of the Labor Code where he sends them every two years to revise minimum wages, and that the Regulation of Classification and Registration of MSMEs (187-17) defines a nomenclature for companies that in no way links the work of the committee, the report relays. "We must know that this obligation that we have to review minimum wages cannot be subject to the issue of reclassification of companies, which has nothing to do with fundamental rights, which are the rights of the worker to receive decent wages," Mr. Hidalgo informed, the report adds. As reported in the Troubled Company Reporter-Latin America in September 2018, Fitch Ratings affirmed Dominican Republic's Long-Term, Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. DOMINICAN REPUBLIC: Marks 1-Yr. Diplomatic Ties With China ---------------------------------------------------------- Dominican Today reports that Administrative Minister Jose Ramon Peralta said that as part of the achievements from one year of diplomatic and trade ties with China, the Dominican Republic government will send a letter in the coming days to immediately start working in Dominican Republic's electricity sector projects. Interviewed by elCaribe, the official said China has already approved avocado imports and that work is being done on protocols for the entry of other items, according to Dominican Today. Dominican Republic marks one year of diplomatic relations with China, the report relays. The report notes that Mr. Peralta is representing the Dominican government in the Second Forum on president Xi Jinping's Silk Route initiative, a project which the Caribbean country joined by signing some 18 agreements last November. As reported in the Troubled Company Reporter-Latin America in September 2018, Fitch Ratings affirmed Dominican Republic's Long-Term, Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. ===================== P U E R T O R I C O ===================== AMERICAN PARKING: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: American Parking System Inc. PO Box 192239 San Juan, PR 00902 Business Description: Headquartered in San Juan, Puerto Rico, American Parking System owns and manages parking lots. The Company previously sought bankruptcy protection on April 8, 2016 (Bankr. D. P.R. Case No. 16-02761). Chapter 11 Petition Date: April 24, 2019 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Case No.: 19-02243 Debtor's Counsel: Alexis Fuentes-Hernandez, Esq. FUENTES LAW OFFICES, LLC PO Box 9022726 San Juan, PR 00902 Tel: (787) 722-5216 Fax: (787) 722-5206 Email: alex@fuentes-law.com Debtor's Financial Consultant: CPA LUIS R. CARRASQUILLO & CO., P.S.C. Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Miguel A. Cabral Veras, president. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/prb19-02243.pdf List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ 1. AGA CPA's & Advisors Professional $30,000 801 International Pkwy Services Lake Mary, FL 32746 2. Calaf, Federico Professional $17,000 Calle Jose Martin #800 Services San Juan, PR 00907 3. CRIM Property Taxes $121,991 PO Box 195378 San Juan, PR 00919-5387 4. De Lage Landen Financial Lease Arrears $6,649 Services, Inc. Photocopier Attn: L Levin 1111 Old Eagle School Road Wayne, PA 09087 5. De Leon Perez, Marino Loans $21,000 Barrio Cambute, Calle San Andres #1 Carolina, PR 00985 6. Department of Justice of PR Rent Arrears $564,788 Oficina Estatal De Conservacion Historica P.O. Box 9023935 San Juan, PR 00902-3935 7. E Ramirez Associates, LLC Professional $8,500 P.O. Box 11741 Services San Juan, PR 00922 8. Garcia, Felix M. Loans $60,000 1348 Calle Oberta San Juan, PR 00908 9. Gonzalez, Esq. Osvaldo R. Professional $922,188 Calle 2 #32, Paseo Alto Services & San Juan, PR 00926-5917 Loans 10. Hospital Damas, Inc. Rent Arrears $105,000 2213 Ponce By Pass Ponce, PR 00717 11. Llovet-Diaz, Esq., Pedro A. Professional $8,000 Urb. Caribe 1581, Calle Services Cavalieri St. 1 San Juan, PR 00927 12. Metro Santurce, Inc. Arrears Lease $105,000 P.O. Box 195579 San Juan, PR 00919-5579 13. New Century Finance, Corp. Financing $18,142 P.O. Box 12011 Arrears San Juan, PR 00914 14. Pellot-Gonzalez Tax Professional $450,000 Attorneys & Counselors Services at Law, PSC Hato Rey Center 268 Ponce De Leon Ave. San Juan, PR 00918 15. Piriz Ravel, Gelcy Z. Employment $6,333 Calle Jardin Don Juan 466, Lawsuit Jardines Del Mediterraneo Toa Alta, PR 00953 16. PPG Architectural Co. Professional $3,252 630 Calle Feria Services Carolina, PR 00987 17. PR Department of Labor Employee $66,234 P.O. Box 195540 Claims San Juan, PR 00918-5540 18. San Francisco Health Rent Arrears $26,320 System, Inc. Hospital San Francisco P.O. Box 29025 San Juan, PR 00929-0025 19. Shred-It USA, LLC Professional $4,797 P.O. Box 364527 Services San Juan, PR 00936-4527 20. Universal Finance, Inc. Finance $14,448 P.O. Box 70380 Charges San Juan, PR 00936-8380 BAILEY'S EXPRESS: Plan Admin Taps Adrienne Woods as Counsel ----------------------------------------------------------- David Allen, the plan administrator appointed for Bailey's Express Inc.'s bankruptcy estate, seeks approval from the U.S. Bankruptcy Court for the District of Connecticut to hire The Law Offices of Adrienne Woods, P.C. to collect a $30,012 judgment from Northern Trucking & Logistics, LLC. The court on March 13 entered default judgment in favor of Mr. Allen after Northern Trucking failed to defend the complaint filed by the plan administrator. The complaint sought to recover preferential payments made by the Debtor to Northern Trucking. Adrienne Woods will receive 45% of the amount collected on the judgment. The firm will also receive reimbursement for work-related expenses, which include filing fees. The expenses are not expected to exceed $1,000. The firm neither holds nor represents any interest adverse to the Debtor and its bankruptcy estate, according to court filings. Adrienne Woods can be reached through: Adrienne Woods, Esq. One Penn Plaza, Suite 6153 New York, NY 10119 Phone: +1 917-447-4321 About Bailey's Express Inc. Headquartered in Middletown, Connecticut, Bailey's Express -- http://www.baileysxpress.com/-- is a Connecticut-based less than truckload carrier. It provides service across the nation and is dedicated in helping Connecticut, Massachusetts and Rhode Island companies market their products throughout the U.S. including Hawaii and Alaska. It has distribution points in Charlotte, Dallas, Denver, Easton, Fontana, Indianapolis, Jacksonville, Memphis, Neenah, Phoenix, Salt Lake City and Toledo. It also provides service to Mexico, Puerto Rico & Canada. Bailey's Express filed for Chapter 11 bankruptcy protection (Bankr. D. Conn. Case No. 17-31042) on July 13, 2017, estimating its assets and liabilities at between $1 million and $10 million. The petition was signed by David Allen, chief financial officer. Judge Ann M. Nevins oversees the case. Elizabeth J. Austin, Esq., and Jessica Grossarth Kennedy, Esq., at Pullman & Comley, LLC, serve as the Debtor's bankruptcy counsel. No creditors' committee has been appointed in the case. On January 12, 2018, the court confirmed the Debtor's Chapter 11 plan of liquidation. Pursuant to the plan, David Allen was deemed the plan administrator for the Debtor's estate. CAPARRA HILLS: Fitch Affirms 'BB' IDR & Alters Outlook to Stable ---------------------------------------------------------------- Fitch Ratings has affirmed Caparra Hills, LLC Long-Term Issuer Default Rating at 'B+' and its senior secured debt at 'BB'/'RR2'. The Rating Outlook has been revised to Stable from Negative. The 'B+' IDR reflects Caparra Hills' limited property diversification, small size, significant tenant concentration, and contract maturity risk. Fitch expects net leverage to decline in the medium to long term as the company replaces gross leasable area (GLA) vacated by a key tenant. Caparra Hills' notes have been notched up to 'BB' to reflect strong recovery prospects in the event of a default. The company's loan-to-value ratio, based on the last appraisal, is estimated to be around 70%. The revision of the Outlook to Stable from Negative reflects Fitch's expectation that Caparra Hills will be able to renew a significant portion of upcoming contracts that are due to expire over the next 12 months and decreasing tenant concentration. KEY RATING DRIVERS Leverage to Trend Down over Medium Term: Fitch expects Caparra Hills' total net debt to EBITDA ratio to be 7.5x by FY19 and then gradually improve to 7.2x by FY21 as a result of increased revenues from new tenants, stable EBITDA margins and lower capex requirements. Caparra had USD51.6 million of total debt as of Dec. 31, 2018, which was composed entirely of secured bonds that require approximately USD5.3 million of annual debt service (interest and principal). Net Leverage was 7.2 as of LTM Dec. 31, 2018 as a result of decreased vacancy rates and a full year effect of various new tenants. High Tenant Concentration: Fitch expects that current levels of counterparty concentration will continue to improve as the company continues to renew or replace key tenants. As of December 30, 2018, Caparra Hills' total occupancy rate was 91%, of which about 42% was occupied by 10 major tenants (down from peak of over 60% in 2015). T-Mobile Center (previously Santander Tower), where Caparra offers net rentable space of 207,140 square feet, has an occupancy rate of 89%, of which 59% is occupied by key tenants that lease over 10,000 sq ft. Tenant concentration has been slowly improving as the company has been replacing GLA vacated by individual tenants with multiple tenants. Good Track Record of Renewals: Contract maturity risk is viewed as high, as a sizeable amount of leased space is set to expire within 12 months including a key tenant that has historically represented roughly 8.6% of T-Mobile Center's GLA. Mitigating this risk is Caparra's solid track record of renewals in Puerto Rico's subdued business and economic environment. Fitch's expects that the company will be able to renew a significant portion of these upcoming maturities over the next year, as well as replace the space vacated at T-Mobile Tower by a key tenant over the next two years. Occupancy is expected to drop to about 85%, but should increase towards 90% by 2021. Secured Bond Enhances Recovery Prospects: The 'BB' rating on the secured bonds positively incorporates the collateral support included in the transaction structure. The payments of the bonds are secured by a first mortgage on the company's real estate properties and the assignment of leases. The secured bonds are payable solely from payments made to the Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority (AFICA) by Caparra Hills. AFICA serves solely as an issuing conduit for local qualified borrowers for the purpose of issuing bonds pursuant to a trust agreement between AFICA and the trustee. The secured bonds are not guaranteed by AFICA, do not constitute a charge against the general credit of AFICA, and do not constitute an indebtedness of the Commonwealth of Puerto Rico or any of its political subdivisions. Weak Operating Environment: Economic conditions in Puerto Rico continue to be challenging. Caparra's small size and lack of geographic diversification makes it highly exposed to Puerto Rico's struggling economy, which has resulted in high unemployment rates and an increased migration of people from the island. Despite the company's relatively stable performance in Puerto Rico, these factors have the potential to erode appraisal values and negatively affect lease rates and renewals. A good property location within the municipality of Guaynabo has partially mitigated this risk, Recovery Rating Assumptions: Fitch's recovery analysis assumes that Caparra Hills, LLC would be considered a going-concern in bankruptcy and that the company would be reorganized rather than liquidated. Fitch has used a going-concern EBITDA of USD4.2 million in its analysis and an EV multiple of 10.0x. Fitch calculates a recovery for the senior secured debt to be in the 71%-90% range based on a waterfall approach. As a result, Caparra's senior secured debt rating has been uplifted by two notches to 'BB'/'RR2'. DERIVATION SUMMARY Caparra Hills, LLC's 'B+' rating reflects its property portfolio, which is in line with the 'B' rating category due to the limited property diversification and rental income risk profile. Expected occupancy of 85% for FY19 is in line with the 'B' rating category of 85% on average for the sector. The company's business is exposed to a riskier operating environment compared to U.S. peers, as Caparra Hills is dependent on the fragile economy of Puerto Rico and operates on a relatively small scale. However, the company has shown resilience in its performance with consistent EBITDA margins over 60%, which is in line with 'BB' rated peers. The company's high single asset concentration and small size is in line with the 'B' rating category. When comparing property portfolio and size to a higher rated peer, such as Mack-Cali Realty Corporation (BB/Stable), Caparra's limited diversification and small size compares unfavorably. Mack-Cali, which operates on a slightly larger scale, owns a portfolio primarily consisting of metro and suburban New Jersey office assets and, to a lesser extent, multifamily properties. Caparra Hills' consistently positive FCF over the last few years and adequate liquidity justify its higher rating compared to General Shopping e Outlets do Brasil S.A. (CCC+/Rating Watch Negative). Caparra Hills' notes have been notched up to 'BB' to reflect strong recovery prospects in the event of a default. The company's loan-to-value ratio (LTV), based on the last appraisal, is estimated at around 70%. The LTV is consistent with peers rated in the 'B' category. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer -- Departure of a key tenant causes occupancy rates to drop to 85%, from 91%; -- Stable EBITDA margins of about 64%-65%; -- Negative FCF for FYE19 due to high capex on renovations and tenant improvements; RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action Lower business risks in terms of contract maturity schedule, concentration risk while improving cash flow generation resulting in lower net leverage of about 6.5x and loan to value of 60% could trigger a positive rating action. Developments That May, Individually or Collectively, Lead to Negative Rating Action A downgrade could be triggered due to a lack of a rapid improvement of the company's vacancy rates, contract maturity schedule coupled with declining cash flow generation, measured as EBITDA, resulting in sustained net leverage above 8.5x. LIQUIDITY Adequate Liquidity: Caparra's liquidity is supported by its cash position of USD2.7 million and an unused unsecured line of credit for USD1 million. The company also maintains a debt service reserve fund of approximately USD8.3 million, held by the trustee, covering 19 months of debt service (interest and principal). As of Dec 30, 2018, Caparra Hills' short-term debt obligation was USD1.6 million. FCF as of year-end June 2018, was USD1.6 million. FCF is expected to be negative in FY19 as the company faces higher capex requirements for a period of tenant replacement and renovations. FULL LIST OF RATING ACTIONS Fitch has affirmed the following ratings: Caparra Hills LLC -- Long-term IDR at 'B+'; Outlook Stable; -- Senior secured debt at 'BB'/'RR2'. PUERTO RICO: Ties With Dominican Republic to Increase Trade ----------------------------------------------------------- Dominican Today reports that Dominican Foreign Minister Miguel Vargas Maldonado, and the Secretary of State of Puerto Rico, Luis Rivera Marin, signed two memorandums of understanding to increase exports and take advantage of trade and investment for the benefit of both economies. Last year, the country exported US$974 million to Puerto Rico, which represented an increase of 30% in relation to 2017, to become the third most significant commercial partner of the Dominican Republic, according to Dominican Today. Meanwhile, imports from Puerto Rico totaled US$685 million, which means that the country registered a surplus of US$289 million, the report notes. The report relays that the foreign minister said that last year the country received 105,000 Puerto Rican tourists, a significant figure, taking into account the population of that island. The first document creates a Council for the Joint Attraction of Investments, Promotion of Projects and Exports of the Dominican Republic-Puerto Rico, to encourage the integration of policies to attract investment in strategic sectors, the report says. The second memorandum establishes cooperation and joint participation in the programs of the United States government to encourage the growth of export flows from the parties to the United States, the report discloses. Rivera Marin said that the increase in trade between both countries shows that the strategies of the last two years have paid off and will continue to bring prosperity to both island nations, the report says. He considered that Puerto Rico and the country should join efforts in tourism, manufacturing, and agriculture, to bring sustained economic growth, the report adds. "We are emphasizing collaboration, without losing sight of the fact that we are part of the United States," said Rivera Marin, who then gave Foreign Minister Vargas a copy of Governor Ricardo Rosello's proclamation, which states he is grateful for the cooperation given to Puerto Rico, after the damage caused by Hurricane Maria in 2017. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States that's facing a massive bond debt of $70 billion, a 68% debt-to-GDP ratio and negative economic growth in nine of the last 10 years. The Commonwealth of Puerto Rico has sought bankruptcy protection, aiming to restructure its massive $74 billion debt-load and $49 billion in pension obligations. The debt restructuring petition was filed by Puerto Rico's financial oversight board in U.S. District Court in Puerto Rico (Case No. 17-01578) on May 3, 2017, and was made under Title III of 2016's U.S. Congressional rescue law known as the Puerto Rico Oversight, Management, and Economic Stability Act ('PROMESA'). The Financial Oversight and Management Board later commenced Title III cases for the Puerto Rico Sales Tax Financing Corporation (COFINA) on May 5, 2017, and the Employees Retirement System (ERS) and the Puerto Rico Highways and Transportation Authority (HTA) on May 21, 2017. On July 2, 2017, a Title III case was commenced for the Puerto Rico Electric Power Authority ("PREPA"). U.S. Chief Justice John Roberts has appointed U.S. District Judge Laura Taylor Swain to oversee the Title III cases. The Honorable Judith Dein, a United States Magistrate Judge for the District of Massachusetts, has been designated to preside over matters that may be referred to her by Judge Swain, including discovery disputes, and management of other pretrial proceedings. Joint administration of the Title III cases, under Lead Case No. 17-3283, was granted on June 29, 2017. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets, as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at O'Neill & Borges are on-board as attorneys. McKinsey & Co. is the Board's strategic consultant, Ernst & Young is the Board's financial advisor, and Citigroup Global Markets Inc. is the Board's municipal investment banker. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains a case web site at https://cases.primeclerk.com/puertorico Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA, and PREPA. O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF), the agency responsible for negotiations with bondholders. The Oversight Board named Professor Nancy B. Rapoport as fee examiner and to chair a committee to review professionals' fees. Bondholders' Attorneys Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet, Rivera & Sifre, P.S.C. and serve as counsel to the Mutual Fund Group, comprised of mutual funds managed by Oppenheimer Funds, Inc., and the First Puerto Rico Family of Funds, which collectively hold over $4.4 billion of GO Bonds, COFINA Bonds, and other bonds issued by Puerto Rico and other instrumentalities. White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS Family of Funds and the Puerto Rico Family of Funds, which hold $613.3 million in COFINA bonds. Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam & Lausell are co-counsel to the ad hoc group of General Obligation Bondholders, comprised of Aurelius Capital Management, LP, Autonomy Capital (Jersey) LP, FCO Advisors LP, and Monarch Alternative Capital LP. Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are co-counsel to the ad hoc coalition of holders of senior bonds issued by COFINA, comprised of at least 30 institutional holders, including Canyon Capital Advisors LLC and Varde Investment Partners, L.P. Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson Kempner Capital Management LP, OZ Management, LP, and OZ Management II LP (the QTCB Noteholder Group). Committees The U.S. Trustee formed an official committee of retirees and an official committee of unsecured creditors of the Commonwealth. The Retiree Committee tapped Jenner & Block LLP and Bennazar, Garcia & Milian, C.S.P., as its attorneys. The Creditors Committee tapped Paul Hastings LLP and O'Neill & Gilmore LLC as counsel. SOLUTIONS BY DESIGN: Taps Rodriguez Perez as Accountant ------------------------------------------------------- Solutions By Design, Inc., received approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Rodriguez Perez & Associates, Inc. as its accountant. The firm will assist the Debtor in the preparation and review of its monthly operating reports and tax returns; provide bookkeeping services; prepare financial projections and analysis required to formulate its Chapter 11 plan; and supervise its accounting affairs and operations. Efrain Rodriguez Jr., the firm's accountant who will be providing the services, will charge $55 per hour. Mr. Rodriguez disclosed in court filings that he is "disinterested" as defined in Section 101(14) of the Bankruptcy Code. Rodriguez Perez can be reached through: Efrain RodrIguez Jr. Rodriguez Perez & Associates, Inc. D-11 Betances Avenue Hermanas Davila Bayamon, PR 00959. Tel: (787)370-9751 Email: rodzperez@live.com About Solutions By Design Solutions By Design Inc., filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 18-06886) on Nov. 28, 2018, disclosing under $1 million in assets and liabilities. The case has been assigned to Judge Brian K. Tester. The Debtor is represented by Nilda M. Gonzalez Cordero, Esq., at Gonzalez Cordero Law Offices. ===================================== T R I N I D A D A N D T O B A G O ===================================== CL FIN'L: Shareholder Wants Sale Stayed, Seeks Finc'l Statements ---------------------------------------------------------------- Trinidad Express reports that attorneys representing a CL Financial Limited shareholder have filed an application before High Court Judge Kevin Ramcharan seeking to put a stay on the further sale of CL Financial assets until the joint liquidators present audited financial statements. Speaking at a news conference at his office on Marli Street in Newtown, Port of Spain, attorney Peter Taylor referred to an order made by Justice Ramcharan in January 2019 that a company called NEVICOTT is entitled to "the applicable and available information" that it had requested in a November 2018 letter, according to Trinidad Express. As reported in the Troubled Company Reporter-Latin America on July 26, 2017, CL Financial Limited shareholders vowed to pay back a TT$15 billion (US$2.2 billion) debt to the Trinidad Government after scoring what it called a "major legal victory" against the Keith Rowley administration. Caribbean360.com said the Trinidad Government went to the High Court with a petition to have the company liquidated. Finance Minister Colm Imbert had explained then that the move was in response to attempts by the company's shareholders to take control of the board. High Court Judge Kevin Ramcharan however sided with the company shareholders, ruling that the action by the Government was premature. The TCR-LA, citing Trinidad Express, reported on Aug. 6, 2015, that the Constitution Reform Forum (CRF) has called on Finance Minister Larry Howai to refrain from embarking on an "unnecessary drain on the Treasury" by appealing the decision of a High Court judge, who ordered that the Minister fulfil a request by president of the Joint Consultative Council (JCC) Afra Raymond for financial details relating to the bailout of CL Financial Limited. The CRF issued a release stating that if the decision is appealed, not only will it be a waste of finance but such a course of action will also demonstrate a "lack of commitment by the Government to the spirit and intent of the Freedom of Information Act FOIA", under which the request was made, according to Trinidad Express. On July 7, 2014, Trinidad Express said that the Central Bank has placed the responsibility of voluntary separation package (VSEP) negotiations for workers at insurance giant Colonial Life Insurance Company Ltd. (CLICO) with the company's board, after which it will review accordingly, the bank said in a statement. The bank's statement follows protest action by CLICO workers, supported by their union, the Banking, Insurance and General Workers' Union (BIGWU), outside the Central Bank in Port of Spain, according to Trinidad Express. In a separate TCRLA report on June 26, 2014, Caribbean360.com said that the Trinidad and Tobago government welcomed an Appeal Court ruling that the Attorney General Anand Ramlogan said saves the country from paying out more than TT$1 billion (TT$1 = US$0.16 cents) to policyholders of the cash-strapped CLICO. The Appeal Court overturned the ruling of a High Court that ruled members of the United Policyholders Group (UPG) were entitled to be paid the full sums of their polices. CLICO financially caved in on itself at the end of 2008 after the investment instruments of major policyholders matured and they wanted hundreds of millions of dollars they were owed. On Aug. 6, 2013, the TCR-LA, citing Caribbean360.com, said that over TT$8 billion worth of CLICO's profitable business will be transferred to Atruis, a new company that will be owned by the state. The Trinidad Express said that the Cabinet approved the transfer as the Finance and General Purposes Committee continues to discuss a letter of intent hammered out by the Ministry of Finance and CL Financial's 400 shareholders, which envisions taxpayers will recover the more than TT$20 billion Government has injected since 2009 to keep CL subsidiary CLICO and other companies afloat. At its annual general meeting in Sept. 2013, CL Financial shareholders voted to extend the agreement with Government until August 25, 2014, while Cabinet decides on a new framework accord to recover the debt owed to Government through divestment of CL subsidiaries, including Methanol Holdings, Republic Bank, Angostura Holdings, CL World Brands and Home Construction Ltd., Caribbean360.com related. Proceeds from the divestment of these assets will go toward Government's recovery of the billions it pumped into CLICO. TCRLA reported on Sep 22, 2011, Caribbean News Now, citing Reuters, said that the cost of the Trinidad and Tobago government bailout of CL Financial Limited is likely to rise to more than TT$3 billion. ============= U R U G U A Y ============= FUCEREP: Fitch Affirms 'B-' Issuer Default Ratings, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed Cooperativa de Ahorro y Credito's (FUCEREP) Local Currency and Foreign Currency Long-Term Issuer Default Ratings and Viability rating at 'B-' and 'b-', respectively. The Rating Outlook is Stable. KEY RATING DRIVERS IDRs AND VR Fucerep's IDRs and VR are highly influenced by its small franchise within the Uruguayan financial system and the challenges the cooperative faces to improve its financial performance, specially earnings and profitability. Fucerep's financial performance has been weak in the recent past. The entity has posted net losses for six consecutive years, which has significantly affected its capital levels. While its operating revenues have slowly increased, Fucerep's profitability is mainly affected by a structurally hefty operational cost base, slow growth, and large IT investments in recent years. Management is aware of the need to reduce costs and has been taking measures in this direction, but Fitch believes Fucerep's cost efficiency will remain low, although it could gradually benefit from higher revenues as loans grow. Although Fucerep is a non-profit entity, profitability is important for the cooperative as a source of internal capital generation. Fucerep's capital ratios have declined strongly in recent years as a consequence of the losses suffered and the increase of the intangible assets (largely IT investments) since 2015. However, Fucerep's capitalization benefits from the annual capital contributions made by the members (around UYU24m per year) and, in 2018 it was aided by the positive effect in its equity from the adoption of International Financial Reporting Standards due to the valuation of fixed assets. Its Fitch Core Capital ratio improved to 16.84% at Dec. 31, 2018 from 14.45% one year before, although it is significantly below the level shown at YE16 of 25.14%. The tangible common equity /tangible assets ratio shows the same trend. Fitch estimates that Fucerep's capital adequacy will continue under pressure in the medium term given the expected portfolio growth and low results, although these will be partly offset by the annual capital contributions made by the members. Fucerep's past due loans ratio had historically been well contained (average of 6.33% in 2010-2015), benefitting from the payroll deduction mechanism of most of its portfolio. However, its asset quality indicators have deteriorated since 2014, and its past due loans ratio rose and peaked at 15.49% at Sept. 30, 2017 and then declined to 12.96% as of Dec. 31, 2018. Reserve coverage is adequate and was 166% of past due loans at Dec. 31, 2018. Write-offs have historically been low but have increased in line with the deterioration trend in asset quality (3.45% of gross loans at YE18). Asset quality has been affected by the economic slowdown, sluggish loan growth in 2015-2017 and the operational problems generated in 2017 by the troublesome implementation of the new core system. Fitch expects past due loans to remain high due to the entity's plans to expand to riskier segments and the weak prospects for the economy, although this should be partly compensated by the measures taken in 2017 and 2018 to control the rise in NPLs and improve collections, which showed rapid results. SUPPORT RATING AND SUPPORT RATING FLOOR Fucerep's Support and Support Rating Floor of '5' and 'NF', respectively, reflect Fitch's opinion that extraordinary government support if needed, although possible, cannot be relied upon given its small size and deposit market share. RATING SENSITIVITIES IDRS AND VR The Outlook on FUCEREP's IDRs and VR is Stable. Sustained progresses in its profitability metrics, with its operating profit consistently remaining above 1% of risk weighted assets, together with asset quality and capitalization remaining at adequate levels (FCC improving and remaining above 20%) could lead to positive rating actions. Fucerep's ratings could be downgraded if it fails to restore profitability and this, together with further material deterioration in asset quality, lead to its Fitch Core Capital ratio falling and remaining below 12%. SUPPORT RATING AND SUPPORT RATING FLOOR Changes in the SR and SRF of Fucerep are highly unlikely in the foreseeable future. Fitch has affirmed the following ratings: Fucerep -- Long-term Foreign and Local Currency IDRs at 'B-'; Outlook Stable; -- Viability rating at 'b-' -- Support rating at '5'; -- Support rating floor at 'NF'. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Power Generator Activated After Blackouts ----------------------------------------------------------------- Luc Cohen at Reuters reports that Venezuela's state-run oil company Petroleos de Venezuela S.A. (PDVSA) said it had activated a power generator that would allow for an increase in crude oil output, after a string of nationwide blackouts disrupted operations in the country's heavy-crude oil Orinoco belt. The company said in a statement the generator would add 10 megawatts of power to the electrical system in the Morichal district of the belt, allowing for an increase in output of Merey crude, Venezuela's most common export grade, according to Reuters. PDVSA said the additional capacity would benefit the Petroindependencia joint venture, which is 34 percent owned by Chevron and allow for the reactivation of a pumping station for diluents, which are oil products that PDVSA needs to convert its extra-heavy oil into exportable grades, the report notes. The OPEC member nation's output fell to under 1 million barrels per day (bpd) in March, a drop of almost 500,000 bpd from the prior month due to the blackouts and the impact of U.S. sanctions, the report adds. As reported in the Troubled Company Reporter-Latin America on Aug. 24, 2018, S&P Global Ratings affirmed its 'SD' global scale issuer credit rating and 'D' issue-level ratings on Petroleos de Venezuela S.A. (PDVSA). =============== X X X X X X X X =============== [ ] BOND PRICING: For the Week April 22 to April 26, 2019 --------------------------------------------------------- Issuer Name Cpn Price Maturity Country Curr ----------- --- ----- -------- ------- --- MIE Holdings Corp 7.5 56.2 4/25/2019 HK USD Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD China Huiyuan Juice Gr 6.5 46.6 8/16/2020 CN USD Yida China Holdings Lt 7.0 74.3 4/19/2020 CN USD Noble Holding Internat 5.3 60.5 3/15/2042 KY USD YPF SA 16.5 67.3 5/9/2022 AR ARS Noble Holding Internat 6.2 62.2 8/1/2040 KY USD Odebrecht Finance Ltd 7.0 17.0 4/21/2020 KY USD Banco Macro SA 17.5 65.2 5/8/2022 AR ARS KrisEnergy Ltd 4.0 40.4 6/9/2022 SG SGD Noble Holding Internat 6.1 62.0 3/1/2041 KY USD USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD Polarcus Ltd 5.6 71.8 7/1/2022 AE USD Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD MIE Holdings Corp 7.5 56.4 4/25/2019 HK USD Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD YPF SA 16.5 67.3 5/9/2022 AR ARS Provincia del Chubut A 4.5 2208 3/30/2021 AR USD Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD Enel Americas SA 5.8 32.7 6/15/2022 CL CLP Banco Macro SA 17.5 65.2 5/8/2022 AR ARS Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Province of Santa Fe 6.9 75.2 11/1/2027 AR USD Odebrecht Finance Ltd 7.0 16.5 4/21/2020 KY USD Province of Santa Fe 6.9 74.7 11/1/2027 AR USD Embotelladora Andina S 3.5 37.9 8/16/2020 CL CLP USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Empresa Provincial de 12.5 0.0 1/29/2020 AR USD Cia Energetica de Pern 6.2 1.1 1/15/2022 BR BRL Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY Plaza SA 3.5 38.3 8/15/2020 CL CLP Banco Security SA 3.0 5.6 7/1/2019 CL CLP Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD Corp Universidad de Co 5.9 64.2 11/10/2021 CL CLP City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD Fospar S/A 6.5 1.2 5/15/2026 BR BRL Empresa de Transporte 4.3 30.9 7/15/2020 CL CLP Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD SACI Falabella 2.3 50.6 7/15/2020 CL CLP Sylph Ltd 2.4 65.1 9/25/2036 KY USD Banco Security SA 3.0 27.4 6/1/2021 CL CLP Empresa Electrica de l 2.5 63.8 5/15/2021 CL CLP Sociedad Austral de El 3.0 17.0 9/20/2019 CL CLP Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP Esval SA 3.5 49.9 2/15/2026 CL CLP ********* 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 * * *