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       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

          Friday, May 17, 2019, Vol. 20, No. 99

                           Headlines



A N T I G U A   A N D   B A R B U D A

LIAT: Confirms No Expression of Interest From Virgin Founder


C A Y M A N   I S L A N D S

PIONEER AIRCRAFT: Fitch to Rate $26MM Series C Notes 'BB(EXP)sf'


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: April Prices Climb 0.53%, Paced By Transport
[*] DOMINICAN REPUBLIC: Corripio Invites Foreign Investors


P A N A M A

CFG INVESTMENTS 2017-1: S&P Affirms BB(sf) Rating on Class B Notes


P U E R T O   R I C O

4J CUSTOM DESIGN: June 26 Plan Confirmation Hearing


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Begins Payment on Citgo-Backed 2020 Bond

                           - - - - -


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A N T I G U A   A N D   B A R B U D A
=====================================

LIAT: Confirms No Expression of Interest From Virgin Founder
------------------------------------------------------------
Joanna Bailey at Simple Flying reports that despite reports of a
hopeful cash injection by Virgin boss Richard Branson, it seems
that LIAT are still high and dry. Prime Minister of St. Vincent and
the Grenadines, Dr. Ralph Gonsalves, has said that "nobody has
contacted me about that", claiming no such offer has been
received.

Previously, it had been reported that Branson was ready to invest
as much as $7 million in the airline, according to Simple Flying.
In fact, the chief of staff in the Antigua and Barbuda government,
Lionel Hurst, had gone so far as to say that Branson planned to
'wet lease several aircraft' and to start flying from Fort
Lauderdale as part of his expansion plans for the airline, the
report notes.

But it seems that no such interest has actually been received. As
reported by CH-Aviation, Gonsalves told his local radio station, WE
FM, that no such bid had been received.

                         About LIAT

LIAT Ltd., formerly known as Leeward Islands Air Transport or LIAT,
is an airline headquartered on the grounds of V. C. Bird
International Airport in Antigua.  It operates high-frequency
inter-island scheduled services serving 15 destinations in the
Caribbean.  The airline's main base is VC Bird International
Airport, Antigua and Barbuda, with bases at Grantley Adams
International Airport, Barbados and Piarco International Airport,
Trinidad and Tobago.

The airline is owned by seven Caribbean governments, with three
being the major shareholders: Barbados, Antigua & Barbuda and St.
Vincent and the Grenadines along with Dominica(94.7 %); other
Caribbean governments, private shareholders and employees (5.3%).

In the last few years, LIAT has been challenged with financial
difficulties, often needing additional funding as the airline dealt
with the high cost of operations.  In November 2016, the Barbados
government defended LIAT's operations, even as opposition
legislators called for a cessation of the business.  In early 2015,
LIAT offered early retirement packages to employees in efforts to
downsize.  In 2014, LIAT knew it had to deal with unprofitable
routes to make operations viable.  In the third quarter of 2013,
the airline's top management was shaken, with news Chief Executive
Officer Captain Ian Brunton's sudden resignation.

LIAT's current chief executive officer is Julie Reifer-Jones and
chief financial officer is Rojer Inglis.

Dr. Ralph Gonsalves, prime minister of St. Vincent & the
Grenadines, serves as chairman of LIAT shareholders.




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C A Y M A N   I S L A N D S
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PIONEER AIRCRAFT: Fitch to Rate $26MM Series C Notes 'BB(EXP)sf'
----------------------------------------------------------------
Fitch Ratings expects to assign the following ratings and Outlooks
to the Pioneer Aircraft Finance Limited notes:

  -- $428,000,000 Series A notes 'A(EXP)sf'; Outlook Stable;

  -- $75,000,000 Series B notes 'BBB(EXP)sf'; Outlook Stable;

  -- $26,000,000 Series C notes 'BB(EXP)sf'; Outlook Stable.

The aircraft ABS notes will be co-issued by Pioneer Aircraft
Finance Limited (Pioneer Cayman) and Pioneer Aircraft Finance LLC
(Pioneer USA) (together as Pioneer). Pioneer Cayman is an exempted
company incorporated with limited liability under the laws of the
Cayman Islands, with tax residency in Ireland. Pioneer USA is a
special purpose limited liability company organized under the laws
of the State of Delaware and a wholly owned subsidiary of Pioneer
Cayman. Pioneer will co-issue the series A, B and C fixed rate
notes.

Pioneer expects to use the initial note and E Note proceeds to
acquire a portfolio of 18 aircraft, prefund the maintenance reserve
account (MRA), security deposit account (SDA), series C reserve
account and expense account, and pay certain expenses.

The pool will be serviced by Goshawk Management (Ireland) Limited
(GMIL; Servicer) and its affiliates, and the notes will be secured
by each aircraft's future lease payments and residual cash flows.
This is the first Fitch-rated aircraft ABS transaction serviced by
GMIL. GMIL is a wholly owned subsidiary of Goshawk Management
Holdings (Cayman) Limited (GMHCL; both not rated by Fitch),
focusing on acquiring, managing and trading commercial aircraft.
Pioneer Cayman will separately issue an E Note to Pioneer I Limited
(E Note Holder).

KEY RATING DRIVERS

Asset Quality - Liquid NB Aircraft - Positive: The pool is
comprised of 18 in-demand, Tier 1 aircraft, including 11 A320-200s
(53%), four B737-800s (20%) and one B737-900ER (6%) current
generation aircraft. The remainder is comprised of one Embraer E190
regional jet (RJ) at 3% and one B787-8 widebody (WB) aircraft at
18%, on lease to Ethiopian Airlines. The WA age of the pool is 5.3
years, which is on the younger end of the range for recent
transactions.

Lease Term and Maturity Schedule - Neutral: The weighted average
(WA) original lease term is 10.3 years with a WA remaining lease
term of 5.1 years, comparable to recently rated pools. Three leases
come due each in 2020 and 2021, representing 12% and 14%,
respectively, while five come due in 2022, totaling 49% across
these three years. The B787-8 WB aircraft on lease to Ethiopian has
an 8.2-year remaining lease term expiring in 2027 and is the
highest aircraft concentration at ~20% of contracted pool cash
flow, and thus, Fitch separately stressed this aircraft to evaluate
residual value sensitivity.

Lessee Credit Risk - Relatively Diverse: The 18 aircraft in the
pool are leased to 18 lessees, which is a credit positive. There
are a high number of unrated or speculative grade airlines, albeit
lower than recent aircraft ABS deals. Fitch assumed unrated lessees
would perform consistent with either a 'B' or 'CCC' Long Term
Issuer Default Rating to accurately reflect default risk. Lessee
ratings were further stressed in future recessions and once
aircraft reach Tier 3 classification.

Country Credit Risk - Neutral: The largest country concentration is
Ethiopia (18%), which has a LT IDR of 'B', with a Stable Outlook,
supported by strong economic growth and constrained by large
macroeconomic imbalances and low development and governance
indicators. The second largest is India (17%) with three aircraft,
which faces high bureaucratic hurdles, infrastructure limitations
and a highly competitive airline market with notable prior airline
bankruptcies. Fitch recently affirmed India's IDR at 'BBB-' with a
Stable Outlook. The next largest country concentrations are the
U.S. (7%), Indonesia (6%) and Thailand (6%). The top 5 countries
total 54%, with 49% of lessees concentrated in APAC.

Operational and Servicing Risk - Adequate Servicing Capability: The
pool will depend on the ability of GMIL (NR by Fitch) to collect
rent payments, remarket and repossess aircraft in an event of
lessee default, and procure maintenance to retain asset values and
ensure stable performance. Despite being established in 2015, Fitch
believes GMIL to be a capable Servicer as evidenced by the solid
capabilities and experience of its team and servicing of its owned
and managed fleet (including the SJETS 2017-1 ABS [NR by Fitch]),
along with third-party aircraft management experience.

Transaction Structure - Consistent: Credit enhancement comprises
overcollateralization, a liquidity facility and a cash reserve. The
initial loan to value ratios for the series A, B and C notes are
66.9%, 78.6% and 82.6%, respectively, based on the average of
maintenance-adjusted base value. Structural features include DSCR
trigger, utilization thresholds, concentration limits and tiered
disposition limits, consistent with recent aircraft ABS
transactions.

Adequate Structural Protections: Each series of notes makes full
payment of interest and principal in the primary scenarios
commensurate with their expected ratings after applying Fitch's
stressed asset and liability assumptions. Fitch also created
multiple alternative cash flows to evaluate the structure
sensitivity to different scenarios detailed later in the report.

Aviation Market Cyclicality: Commercial aviation has been subject
to significant cyclicality due to macroeconomic and geopolitical
events. Fitch's analysis assumes multiple periods of significant
volatility over the life of the transaction. Downturns are
typically marked by reduced aircraft utilization rates, values and
lease rates, as well as deteriorating lessee credit quality. Fitch
employs aircraft value stresses in its analysis, which takes into
account age and marketability to simulate the decline in lease
rates expected over the course of an aviation market downturn, and
the decrease to potential residual sales proceeds.

Rating Cap of 'Asf': Fitch limits aircraft operating lease ratings
to a maximum cap of 'Asf' due to the factors, and the potential
volatility they produce.

RATING SENSITIVITIES

The performance of aircraft ABS can be affected by various factors,
which, in turn, could have an impact on the assigned ratings. Fitch
conducted multiple rating sensitivity analyses to evaluate the
impact of changes to a number of the variables in the analysis.
These sensitivity scenarios were also considered in determining the
ratings.

Widebody Stress Scenario

Approximately 18% of the pool is concentrated in a single widebody
aircraft, the WB B787-8 Dreamliner. Due to the density of
contractual cash flows attributed to one aircraft, Fitch created a
scenario in which the WB aircraft encountered heightened stress to
residual values. Fitch assumed immediate migration to Tier 3 from
Tier 1 to stress depreciation rates and recessionary value declines
and further lowered its residual credit to 25% from base 50%. Under
this scenario, the cash flow declined from the primary scenario by
6%. All three series pass their respective rating scenarios and are
unlikely to experience rating downgrades.

Lease Rate Factor Scenario

Increased competition, largely from newly established APAC lessors,
has contributed to declining lease rates in the aircraft leasing
market over the past few years. Additionally, certain variants have
been more prone to value declines and lease rates due to oversupply
issues. Fitch performed a sensitivity analysis assuming lease rate
factors would not increase after an aircraft reached 11 years of
age, providing a material haircut to future lease cash flow
generation. Per Fitch's criteria LRF curve, no subsequent leases
were executed at a LRF greater than 1.13%. This scenario highlights
the effect of increased competition in the aircraft leasing market,
particularly for mid- to end-of-life aircraft over the past few
years, and stresses the pool to a higher degree by assuming lease
rates well below observed market rates. Under this scenario, the
cash flow declined from the primary scenario by 5%. All three
series pass their respective rating scenarios and are unlikely to
experience rating downgrades.

'CCC' Unrated Lessee Stress Scenario

Fitch evaluated a scenario in which all unrated airlines are
assumed to carry a 'CCC' rating. This scenario mimics a prolonged
recessionary environment in which airlines are susceptible to an
increased likelihood of default. This would, in turn, subject the
aircraft pool to more downtime and expenses as repossession and
remarketing events would increase. Under this scenario, the notes
show greater sensitivity with a sharper decline in cash flow by
13%-18% from the primary scenario. Series A could be considered for
a downgrade by up to two rating categories and series B and C notes
by up to one rating category each.

Technological Obsolescence Stress Scenario

The last sensitivity scenario is to address technological
replacement risk for current technology equipment. All aircraft in
the pool face replacement programs over the next decade,
particularly the A320ceo and B737 NG aircraft in the form of
A320neo and B737 MAX aircraft. Therefore, Fitch utilized a scenario
in which demand, and thus values, of existing aircraft would fall
significantly due to the replacement technology. The first
recession was assumed to occur two years following close, and all
recessionary value decline stresses were increased 10% at each
rating category. Fitch conducted two sets, utilizing a 25% and 15%
residual assumption rather than the base level of 50% to stress
end-of-life proceeds for each asset in the pool. Lease rates drop
fairly significantly under this scenario, and aircraft are
essentially sold for scrap at the end of their useful lives. Under
the 25% assumption, each series remains able to pay in full. Under
the 15% assumption, series A and C notes could be considered for a
downgrade by up to one rating category each.




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

DOMINICAN REPUBLIC: April Prices Climb 0.53%, Paced By Transport
----------------------------------------------------------------
Dominican Today reports that the Dominican Central Bank said
consumer prices rose 0.53% in April, while cumulative inflation for
the first four months stood at 1.39%.

"With this result annualized inflation, that is, measured from
April 2018 to April 2019, stood at 1.61%, staying below the lower
limit of the target range of 4.0% ± 1.0% established in the
Monetary Program of 2019," the Central Bank said in an emailed
statement obtained by the news agency.

It said that the groups which most influenced April prices were
Transport (1.41%) and Food and Non-Alcoholic Beverages (0.83%), the
report notes.

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: Corripio Invites Foreign Investors
----------------------------------------------------------
Dominican Today reports that the officials and business leaders
listed the country's opportunities for foreign and local
investments in several sectors to boost Dominican Republic's
economy.

The statement emerged during the "Dominican Republic Growth,
Sustainability" ABC America Forum held in the Foreign Ministry,
where the country's advantages were showcased in tourism, the
economy and social and political stability, as expressed by public
and private sector representatives, according to Dominican Today.

Corripio Communications Group CEO, Jose Luis Corripio (Pepin),
labeled Dominican Republic's investment conditions as "optimal,"
the report notes.

"To wait any longer is to arrive late to participate in the
economic success," he said, the report says.

The country's stop mogul invited foreign investors, especially
Spaniards, to invest in the country now, since its "cruising speed"
has yet to be reached, the report notes.

"I invite you to seriously consider maintaining and continuing to
increase your investments in the Dominican Republic, which is an
investment paradise," he added.

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.




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P A N A M A
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CFG INVESTMENTS 2017-1: S&P Affirms BB(sf) Rating on Class B Notes
------------------------------------------------------------------
S&P Global Ratings affirmed its ratings on CFG Investments Ltd.'s
series 2017-1 notes following the upgrade of the sovereign of
Panama to 'BBB+' from 'BBB.'

The note issuance is an asset-backed securities (ABS) transaction
backed by unsecured personal loan receivables, or beneficial
interests therein, from four different jurisdictions: Aruba
(BBB+/Negative/A-2), Curacao (BBB+/Stable/A-2), Bonaire (not
rated), and Panama (BBB+/Stable/A-2). Panama contributes the most
receivables to the transaction (more than 50%) on both the current
pool and under S&P's worst-case pool allowed by the transaction's
concentration limits.

S&P said, "When we assigned our preliminary ratings to this
transaction back in September 2017, we tested class A available
credit enhancement for a potential rating above the sovereign
rating on Panama. At that time, the resulting credit support levels
were not sufficient to withstand these additional stresses on the
class A notes. As a result, the rating on class A was capped at the
then 'BBB' sovereign rating on Panama.

"Now, given that Panama has been upgraded to 'BBB+', we have tested
the class A notes under stress losses commensurate with that
rating, without the application of additional stresses per our
"rating above the sovereign" (RAS) criteria. To define the initial
stress factors for each jurisdiction at this level, we considered
the typical default rates we've observed across consumer asset
types as multiples of the base case according to our global
consumer criteria, and adjusted it for country risk plus other
factors. These adjustments did not change since we assigned ratings
to the transaction in November 2017." Total 'BBB+' stress factors
for class A are presented below:

  'BBB+' STRESS FACTORS FOR CLASS A

  Initial               Country risk       Total stress factor
  stress factor         adjustment (%)     applied
  Panama:  2.42x            50 + 0.50x                   4.13x
  Curacao: 2.92x            30 + 0.50x                   4.29x
  Aruba:   2.92x            30 + 0.75x                   4.54x

S&P said, "We did not modify our base-case loss (BCL) or prepayment
assumptions per jurisdiction. Also, we continue to assume 100%
losses for Bonaire, because the sovereign's credit quality is
unknown. As of April 2019, total write-off figures are in line with
our expectations and growing at lower speeds than we had previously
anticipated.

"We also did not change any of our assumptions for class B, but did
test for higher rating scenarios. Based on our cash flow scenarios
with an updated pool and cut-off date of April 30, 2019, we see
that the credit support levels for class A and class B are still
not sufficient to withstand stresses commensurate with 'BBB+' or
'BB+', respectively, but continue to be commensurate with the
existing ratings. As such, the ratings on both classes are affirmed
and the Panama upgrade did not have a ratings impact on the
notes."

Since November 2017, when S&P assigned ratings to the transaction,
S&P notes the following:

-- The company has been revolving credits on a constant basis for
all jurisdictions.

-- Cumulative charge-offs calculated over the total balance
(initial plus aggregate pool) have been under our BCLs for all
jurisdictions.

-- Pool composition has been in line with transaction documents
and has remained consistent with initial pool composition.

-- S&P's defined worst-pool composition remains as the most acid
combination of jurisdictions based on the performance of each.

-- The current overcollateralization amount of $44,385,065.09 is
above the target of $39,800,000.00.

S&P said, "Our 'BBB+' rating on Panama reflects the country's
record of persistently high GDP growth that has been above the pace
of its rating peers, which has contributed to an increasingly
diversified and resilient economy. The rating also reflects the
country's track record of orderly administration changes and
maintenance of stable pro-investment and pro-growth economic
policies. It is supported by the sovereign's low debt burden and
ample fiscal flexibility, reflecting cautious fiscal and debt
management. The rating also incorporates a weak external profile,
partly reflecting Panama's vulnerability to sharp swings in global
economic conditions as a small and open economy. The rating is
constrained by the country's lack of an independent monetary
policy, as well as the absence of an effective lender of last
resort to its financial system, as Panama is fully dollarized. The
transaction's counterparty risks, operational risks, and payment
and legal structures have not changed since our last review in
November 2017."

  RATINGS AFFIRMED

  CFG Investments Ltd.

  Class     Rating         Type            Interest     Amount
                                           rate (%)   (mil. $)

  A         BBB (sf)       Senior              7.87      173.0
  B         BB (sf)        Subordinate         9.42      34.25
  RR        NR             Subordinate         0.25       12.0

  NR--Not rated.




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P U E R T O   R I C O
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4J CUSTOM DESIGN: June 26 Plan Confirmation Hearing
---------------------------------------------------
The Bankruptcy Court conditionally approved the Amended Disclosure
Statement explaining the Amended Chapter 11 Plan of 4J Custom
Design Inc.

A hearing for the consideration of the final approval of the
Amended Disclosure Statement and the confirmation of the Amended
Plan and of such objections as may be made to either will be held,
for cause, on June 26, 2019, at 9:00 AM, at the U.S. Bankruptcy
Court, Jose V. Toledo U.S. Post Office and Courthouse Building,
300 Recinto Sur Street, Courtroom 3, Third Floor, San Juan, Puerto
Rico.

Acceptances or rejections of the Amended Plan may be filed in
writing by the holders of all claims on/or before fourteen (14)
days prior to the date of the hearing on confirmation of the Plan.

Any objection to the final approval of the Amended Disclosure
Statement and/or the confirmation of the Amended Plan shall be
filed on/or before fourteen (14) days prior to the date of the
hearing on confirmation of the Amended Plan.

                 About 4J Custom Design Inc.

4J Custom Design Inc., filed a Chapter 11 bankruptcy petition
(Bankr. D.P.R. Case No. 18-05704) on Sept. 28, 2018, estimating
under $1 million in assets and liabilities.  Jaime Rodriguez Perez,
Esq., at Hatillo Law Office, PSC, is the Debtor's counsel.




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

PETROLEOS DE VENEZUELA: Begins Payment on Citgo-Backed 2020 Bond
----------------------------------------------------------------
Corina Pons and Mayela Armas at Reuters report that Venezuela's
ad-hoc board of directors for state oil company Petroleos de
Venezuela S.A. (PDVSA), appointed by opposition leader Juan Guaido,
said it has made an interest payment on its bond maturing in 2020,
delaying uncertainty over its crown jewel U.S. asset.

The PDVSA bond is backed by shares in U.S. refiner Citgo and
failure to make the $71 million interest payment would have allowed
bondholders to seize the shares as compensation, according to
Reuters.

But Citgo may still be at risk of seizure because the company has a
$913 million interest payment due on Oct. 27. Other creditors of
Venezuela, including Canadian mining company Crystallex, are also
attempting to seize Citgo in order to collect on unpaid debts, the
report notes.

President Nicolas Maduro's government had remained current on the
2020 bond even as it fell behind on more than $10 billion in
interest and principal payments on other bonds issued by PDVSA and
the government, the report relays.

But efforts by any Maduro-linked entity to pay would have been
complicated by sanctions imposed by the United States on PDVSA in
January as part of a bid to pressure Maduro to step down, the
report discloses.

The United States and dozens of other countries have recognized
Guaido, who in January invoked Venezuela's constitution to assume
an interim presidency, claiming Maduro's 2018 re-election was
illegitimate, the report says.

"We see the USD913 million October payment as unlikely in the
absence of political change," New York-based Torino Economics said
in a note, the report relays.

Reuters notes that Maduro retains control of PDVSA's operations in
Venezuela as well as state functions, but a Guaido-appointed board
has taken control of Houston-based Citgo.

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).



                           *********


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.

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