/raid1/www/Hosts/bankrupt/TCRLA_Public/190606.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                 L A T I N   A M E R I C A

          Thursday, June 6, 2019, Vol. 20, No. 113

                           Headlines



A R G E N T I N A

ARGENTINA: To Get $200MM Loan to Strengthen Integrity Reforms
ORIGINCLEAR INC: Has $331K Net Loss at Quarter Ended March 31


B R A Z I L

AVIANCA HOLDINGS: Egan-Jones Lowers Senior Unsecured Ratings to B-
BABILONIA HOLDING: Moody's Rates BRL87MM Debentures Ba2/Aa1.br
BRASKEM SA: Deal Failure Complicate Odebrecht Restructuring
CPFL ENERGIA: Moody's Affirms Ba1 Global Scale CFR, Outlook Stable


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Meeting Held on Relevance of Ports to Economy
DOMINICAN REPUBLIC: Unions Are No-Shows at CNS Meeting


M E X I C O

GRUPO POSADAS: Fitch Alters Outlook on 'B' LT IDRs to Negative
MEXICO: Top Diplomat Sees High Probability of Reaching Deal w/US
MEXICO: Warns More US Tariffs Could Worsen Illegal Immigration


U R U G U A Y

CORPORACION NAVIOS: Fitch to Rate $483MM Secured Notes 'BB+(EXP)'


V E N E Z U E L A

VENEZUELA: Defaults on Gold Swap With Deutsche Bank

                           - - - - -


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

ARGENTINA: To Get $200MM Loan to Strengthen Integrity Reforms
-------------------------------------------------------------
Argentina will continue to strengthen the transparency and
integrity reforms of public management that the government has been
promoting since 2016, with the support of a $200 million loan from
the Inter-American Development Bank (IDB).

The project is the second of two consecutive operations, the first
of which was approved in August 2017, under the programmatic
policy-based loan modality to support policy reforms. This new
operation supports measures that implement greater access to public
information by citizens and economic actors through the regulation
of the Law on Access to Public Information.

The operation also focuses on issues of integrity of officials and
reduction of impunity, recognizing the progress in the
implementation of a gift registry and the implementation of the
Arrepentido Law.

One area of special attention is providing more transparency in
managing government resources in the procurement of public works,
purchases and public employment.  This includes the adoption of an
electronic management system to contract public works bids, the
concessions of public works and services, and licenses for 50
percent of public works executed by ministries.

The program foresees increasing the effectiveness of the financial
system and reducing transaction costs, with the strengthening of
transparency based on the adoption of measures aligned with the
International Standards of the Financial Action Task Force (FATF)
and IFRS, issued by the International Accounting Standards Board
(IASC).

The IDB loan, for $200 million, has an amortization period of 20
years, a grace period of 5 and a half years and an interest rate
based on LIBOR.

                        About Argentina

As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings in June 2018 affirmed its 'B+' long-term sovereign
credit ratings on the Republic of Argentina. S&P's long-term
sovereign credit ratings on Argentina was raise to 'B+' from 'B' in
October 2017. The outlook on the long-term ratings remains stable.

In May 2018, Fitch Ratings affirmed Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'B' and revised the
Outlook to Stable from Positive.

In December 2017, Moody's Investors Service upgraded the Government
of Argentina's local and foreign currency issuer and senior
unsecured ratings to B2 from B3. The senior unsecured shelves were
upgraded to (P)B2 from (P)B3. The outlook on the ratings is
stable.

At the same time, Argentina's short-term rating was affirmed at Not
Prime (NP). The senior unsecured ratings for unrestructured debt
were affirmed at Ca and the unrestructured senior unsecured shelf
affirmed at (P)Ca. Moody's said the key drivers of the upgrade of
the rating to B2 are: (1) a record of macro-economic reforms that
are beginning to address long existing distortions in Argentina's
economy; and (2) the likelihood that reforms will continue and in
turn sustain the recent return to positive economic growth.

The stable outlook on Argentina's B2 ratings balances Argentina's
credit strengths of its large, diverse economy and moderate income
levels against the credit challenges posed by still high fiscal
deficits and a reliance on external financing, which increases its
vulnerability to external event risk, said Moody's.

Back in July 2014, Argentina defaulted on some of its debt, after
expiration of a 30-day grace period on a US$539 million interest
payment.  Earlier that day, talks with a court-appointed mediator
ended without resolving a standoff between the country and a group
of hedge funds seeking full payment on bonds that the country had
defaulted on in 2001. A U.S. judge had ruled that the interest
payment couldn't be made unless the hedge funds led by Elliott
Management Corp., got the US$1.5 billion they claimed. The country
hasn't been able to access international credit markets since its
US$95 billion default 13 years ago. On March 30, 2016, Argentina's
Congress passed a bill that will allow the government to repay
holders of debt that the South American country defaulted on in
2001, including a group of litigating hedge funds that won
judgments in a New York court. The bill passed by a vote of 54-16.


ORIGINCLEAR INC: Has $331K Net Loss at Quarter Ended March 31
-------------------------------------------------------------
OriginClear, Inc., filed its quarterly report on Form 10-Q,
disclosing a net loss of $331,272 on $742,043 of sales for the
three months ended March 31, 2019, compared to a net loss of
$12,888,316 on $1,333,539 of sales for the same period in 2018.

At March 31, 2019, the Company had total assets of $1,041,279,
total liabilities of $14,656,752, and $15,823,473 in total
shareholders' deficit.

The Company has not generated significant revenue, and has negative
cash flows from operations, which raise substantial doubt about the
Company's ability to continue as a going concern.  The ability of
the Company to continue as a going concern and appropriateness of
using the going concern basis is dependent upon, among other
things, raising additional capital and increasing sales.

T. Riggs Eckelberry, the Company's chief executive officer, said,
"We obtained funds from our private placements during the three
months ending March 31, 2019.  No assurance can be given that any
future financing will be available or, if available, that it will
be on terms that are satisfactory to the Company.  Even if the
Company is able to obtain additional financing, it may contain
restrictions on our operations, in the case of debt financing, or
cause substantial dilution for our stockholders, in case of equity
financing."

A copy of the Form 10-Q is available at:

                       https://is.gd/BtetLT

OriginClear, Inc., provides water treatment solutions.  The company
licenses its Electro Water Separation technology worldwide to treat
heavily polluted waters, as well as to remove harmful
micro-contaminants from drinking water using minimal energy,
chemicals, and materials.  It also designs and manufactures a line
of water treatment systems for municipal, industrial, and pure
water applications. In addition, the company offers a range of
services, including maintenance contracts, retrofits, and
replacement assistance; and rents equipment through contracts of
varying duration, as well as provides prefabricated wastewater
treatment products. It operates in the United States, Canada,
Japan, Argentina, and the Middle East. The company was formerly
known as OriginOil, Inc. and changed its name to OriginClear, Inc.
in April 2015.  OriginClear was founded in 2007 and is
headquartered in Los Angeles, California.




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B R A Z I L
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AVIANCA HOLDINGS: Egan-Jones Lowers Senior Unsecured Ratings to B-
------------------------------------------------------------------
Egan-Jones Ratings Company, on May 28, 2019, downgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Avianca Holdings SA to B- from B. EJR also downgraded the rating
on commercial paper issued by the Company to C from B.

Avianca Holdings is a Latin American airline holding company formed
in February 2010 by the merger of two airlines, Avianca from
Colombia and TACA Airlines from El Salvador. The company is a
subsidiary of Synergy Group, a South American conglomerate based in
Rio de Janeiro, Brazil.


BABILONIA HOLDING: Moody's Rates BRL87MM Debentures Ba2/Aa1.br
--------------------------------------------------------------
Moody's America Latina Ltda. assigned a Ba2 global scale and Aa1.br
national scale ratings to Babilonia Holding S.A.'s BRL87 million
senior secured debentures due in 2033, to be issued in the form of
infrastructure debentures pursuant to law 12,431. The outlook is
stable. This is the first time that Moody's assigns ratings to the
project's securities.

RATING RATIONALE

The Ba2/Aa1.br ratings assigned to Babilonia's senior secured
debentures reflect Moody's views of the project's robust cash flow
profile that covers anticipated amortizing debt service and is
supported by: (1) a regulated long-term revenue profile; (2) the
project's favorable location in the Northeast of Brazil, an area
with tested strong wind resources; (3) the known quality and
performance of Siemens Gamesa's wind turbine technology. The
ratings also consider the standard project finance features that
offer protection to creditors, as well as Moody's perception of
strong sponsor commitment to the project provided by EDP Renovaveis
Brasil S.A. (EDPR-Brasil, unrated), an indirect subsidiary of EDP
-- Energias de Portugal, S.A. (Baa3, stable).

The project's credit quality is are tempered by Babilonia's limited
track record of operations, which only started in November 2018.
The ratings are ultimately constrained by Brazil's government bond
rating (Ba2, stable) due to the highly regulated nature of the
energy sector and its view of the project's counterparty risk being
closely aligned with the credit quality of the sovereign.

Babilonia's project benefits from a long-term revenue profile,
composed of five 20-year regulated contracts under the Reserve
Energy Auction (LER) of November 2015 that account for 98.6% of the
project's certified energy capacity. These power purchase
agreements (PPAs) are take-or-pay contracts at fixed prices (of
approximately BRL228/MWh, currently) that are adjusted annually by
inflation. The LER PPAs also benefit from a quadrennial revenue
settlement mechanism that seeks to address the intermittent nature
of the wind resource by allowing one specific year of generation
deficit to be compensated by another year's generation surplus
within a four-year period prior to revenue deductions.

Despite the intermittent nature of the wind resources, the
project's financial commitments have strong cushion relative to the
expected scenarios of power generation, based on third party wind
studies (Barlovento and Inegi) reviewed by Moody's. The ratings
base case considers a conservative generation assumption that
implies a constant capacity factor of 57.8% (1-yr P90) during the
debentures' tenor, under which the project generates a minimum and
average debt service coverage ratios (DSCR) of 1.42x and 1.76x,
respectively, as per Moody's calculation standards. The minimum
DSCR occurs in 2020, due to the relatively large first amortization
payment on the debenture. After that, the DSCR profile increases to
1.9x through 2030, as per the debt amortization schedule, with some
volatility around the years of quadrennial settlements.

From a break-even perspective, Moody's estimates that the project
could withstand a reduction in generation volumes equivalent to 70%
of the 1-yr P90 consecutively and still honor timely principal and
interest payments, with the use of cash reserves. This is
equivalent to a capacity factor of approximately 40.3%. Downside
scenarios on wind resources are mitigated by a cash trap mechanism
embedded in the debt documentation, restricting dividend
distributions under a scenario of 12-month accumulated net
generation below 672.7 gigawatt hour (GWh), as equivalent to the
minimum energy volumes estimated with a 90% probability for the
long term (20-year P90).

The ratings also consider the track record and known quality of the
project's technology comprising wind turbines supplied by an
established local subsidiary of Siemens: Siemens Gamesa Renewable
Energy, S.A. (Baa3, Stable). The project has a fixed price,
inflation adjusted, service operations and maintenance (O&M)
agreement for a minimum period of five years, renewable for another
five years as a Babilonia option, which provides some visibility
into the project's cost base. The O&M covers routine and planned
maintenance services, repair services or replacement of wind
turbine parts and periodical inspections to ensure a minimum 98%
availability. The O&M does not cover the cost of spare parts and
personal overtime. Moody's ratings base case assumes the current
O&M agreement will be renewed for another 5-year period for a
maximum period of 10 years.

Moody's views that the project's counterparty risk is closely
aligned with that of the sovereign. Brazil's energy sector is
highly regulated and subject to the Federal government power to tax
and to determine laws. The project's single off-taker is the
Brazilian Electric Energy Chamber of Commerce (CCEE, not rated), a
company that has delegated powers by Brazil's regulator ANEEL to
carry out the wholesale electricity trades and short term energy
settlements in the National Interconnected System.

DEBT STRUCTURE AND SECURITY

The debentures are fully amortizing in 14.5 years, with a
customized bi-annual payment schedule through 2033. Proceeds of the
issuance will be used to reimburse investment expenses anticipated
by the shareholders and debt incurred to support the project's
construction, pursuant to the rules of law 12,431.

The debentures benefit from real guarantees and rank pari-passu
with the long-term loans granted by Banco Nacional de
Desenvolvimento Economico e Social - BNDES (BNDES, Ba2 stable), in
the total amount of BRL571 million, with final maturity in 2035.
The security package shared between the indenture and the BNDES
loan, includes: (i) pledge of shares from the sponsor on the issuer
company and the project companies; (ii) pledge of all the project's
equipment; (iii) fiduciary assignment of the receivables arising
from the LER PPAs and the deposits in the provisions account, debt
service reserve account (DSRA) and O&M reserve account.

The indenture considers a clear project cash waterfall schedule for
the project including a pre-funded 6-month DSRA for debenture
payments, a provision account for monthly accrual of the next
semi-annual debt service on the debentures and a 3-month O&M
reserve account. Additionally, the project's sponsor provides a
corporate guarantee on the project to mitigate ramp-up risks until
the project achieves certain operating and financial standards for
twelve consecutive months.

The debentures have usual and customary project finance covenants,
such as (i) indebtedness limitation, so that the project cannot
issue new debt; (ii) restrictions to change of direct control,
unless if previously approved; and (iii) limitations clauses on
dividend distribution and intercompany loans. There is also a
requirement for the project to maintain a minimum DSCR of 1.2x
measured on an annual basis.

The assigned ratings are based on preliminary documentation.
Moody's does not anticipate changes in the main conditions that the
debentures will carry. Should issuance conditions and/or final
documentation deviate from the original ones submitted and reviewed
by the rating agency, Moody's will assess the impact that these
differences may have on the ratings and act accordingly.

OUTLOOK

The stable outlook reflects Moody's view that the Babilonia project
will generate cash flows that are enough to cover its projected
debt service over the next 12 to 18 months, while ensuring that its
financial metrics remain well positioned for its current rating
category.

FACTORS THAT COULD LEAD TO AN UPGRADE/DOWNGRADE

The global scale rating is constrained by the credit quality of the
Brazil government, as such the rating can be upgraded upon a
similar action to that of the sovereign. An upgrade would also
depend on the operating performance of turbines and wind sources to
be in line with or above Moody's expectations for a prolonged
period.

The ratings could be downgraded if the project's operating
performance is consistently below its expectations increasing the
likelihood of covenant breach or leading to a sustained
deterioration in credit metrics. Quantitatively, the national scale
rating could be downgraded if Moody's DSCR falls below 1.40x over a
12 month period without the expectation of reversal in a subsequent
period. Moody's perception of a deterioration in the credit quality
of EDPR --Brasil, while the corporate guarantee is in place, or a
notable decline in the level of consistency and predictability of
the Brazilian business environment for the electricity sector or to
the contractual framework that support the project's cash flows,
could also exert negative pressure on the ratings.

ISSUER PROFILE

Babilonia Holdings S.A. is a non-operational holding company owner
of five wind clusters authorized by ANEEL/Ministry of Energy and
Mining to operate as energy producers, forming the Babilonia
complex. Located in the municipalities of Ourolandia, Vazea Nova
and Morro do Chapeu, in the State of Bahia, the project has a total
installed capacity of 136.5MW, composed of 65 wind turbines
generators (WTGs) supplied by Gamesa of 2.1MW each (Model G114 CII
Maxpower). The project, which reached 100% official commercial
operations date in November 2018, is sponsored by EDP Renováveis
Brasil S.A. (EDPR-Brasil, unrated).

EDPR-Brasil is a non-operational sub-holding company focused on the
development, management and operation of renewable power assets
(mainly wind farms) in Brazil. The company is 100% owned by EDP
Renovaveis S.A (EDPR, unrated), which in turn is 82.6% owned EDP --
Energias de Portugal, S.A. (Baa3 stable). As of December 2018, EDPR
- Brasil reported 468 MW of installed capacity operational and 919
MW under development.


BRASKEM SA: Deal Failure Complicate Odebrecht Restructuring
-----------------------------------------------------------
Tatiana Bautzer and Carolina Mandl at Reuters report that Odebrecht
SA's failure to sell its controlling stake in petrochemical company
Braskem SA to LyondellBasell Industries NV and lack of cash are
complicating the task of restructuring BRL80 billion (US$20.67
billion) in debt owed by the corruption-ensnared conglomerate,
three sources with knowledge of the matter said.

The three people requested anonymity to disclose private
discussions.

The conglomerate was counting on Braskem dividends to service its
debt, according to Reuters.  But a court order in April related to
environmental damages by the petrochemical company's operation's in
the Brazilian northeastern state of Alagoas froze dividend
payments, the report notes.

LyondellBasell said it ended talks with Odebrecht SA to buy Braskem
"after careful consideration" but did not elaborate further, the
report relays.

A deal to sell its stake in Braskem could also have provided a cash
windfall to the conglomerate. In a statement, the conglomerate said
a bankruptcy protection filing "is not Odebrecht's goal," the
report discloses.

A fourth source, familiar with Odebrecht's strategy, said the
conglomerate believes the Braskem deal failure will give an
incentive to creditors to engage in a more organized way in a debt
restructuring, the report says.

After concluding the restructuring, the construction group would be
able to organize a new process to sell its stake in Braskem SA, the
report notes.

The report relays that bOdebrecht is Braskem's controlling
shareholder with a 38% stake and the majority of voting stock.
Brazilian state-controlled oil company Petroleo Brasileiro SA holds
a 36% stake.

Currently, Odebrecht has few streams of revenue, the report notes.
It relies on Braskem's dividends, which are blocked, and asset
sales, the report says.

Reuters discloses that some creditors, specially Brazilian state
banks, that have avoided going to court to give Odebrecht time to
restructure in recent years are not willing to wait longer.

Odebrecht has been restructuring its debt with local banks for the
last three years, the report relays.

Two of Odebrecht's units are restructuring debt with creditors, the
report notes.  Ethanol unit Atvos filed for bankruptcy protection
and Odebrecht construction unit OEC is in talks with bondholders
after defaulting earlier this year, the report relates.

The deal to sell Braskem to LyondellBasell, which had been in
discussion for a year and a half, could have provided a windfall to
creditors and to Odebrecht, the report discloses.

Initially, the conglomerate wanted to trade its full stake in
Braskem, which is now pledged as collateral to some Brazilian
banks, for Lyondell shares, the report says.  But pressured by
creditors, Odebrecht agreed to trade part of its stake for cash to
repay them, the report relays.

A year ago, Brazil's two largest private banks, Banco Bradesco SA
and Itau Unibanco Holding SA, reached an agreement with Odebrecht
to give it a joint loan of BRL2.6 billion in what was expected to
give the group a two-year relief, the report notes.

At the same time, both banks improved collaterals to their debts.
Currently, Odebrecht's stake in Braskem is pledged entirely as
collateral to some local banks, the report discloses.  According to
Brazilian bankruptcy law, its stake would have to be excluded from
a bankruptcy protection proceeding, the report says.

If the collateral is not challenged, Braskem will be owned by the
local banks if Odebrecht files for bankruptcy, the report relays.

The debt finance also involved Banco do Brasil SA, Banco Santander
Brasil SA and development bank BNDES, which agreed to changes to
collateral but did not agree to extend new loans, the report notes.
Under the terms of the agreement, Odebrecht also used BRL100
million from the new loan to repay Banco do Brasil, the report
says.

In the last two years, Brazilian banks have been increasing
provisions to tackle problems with struggling Odebrecht, but not
all banks improved their collateral, the report adds.

As reported in the Troubled Company Reporter-Latin America on Aug.
24, 2017, Moody's Investors Service confirmed Braskem S.A.
corporate family rating at Ba1 and the ratings on the foreign
currency debt issuances of Braskem Finance Ltd and Braskem America
Finance Company, fully guaranteed by Braskem S.A, at Ba1. The
rating outlook is negative.


CPFL ENERGIA: Moody's Affirms Ba1 Global Scale CFR, Outlook Stable
------------------------------------------------------------------
Moody's America Latina Ltda. has affirmed the corporate family
ratings assigned to CPFL Energia S.A. at Ba1 global scale and
Aaa.br national scale. At the same time, Moody's affirmed the
Ba1/Aaa.br ratings assigned to the COMPANHIA PTA DE FORCA E LUZ -
CPFL PAULISTA's BRL700 million 8th issuance of debentures and CPFL
Geracao de Energia S.A.'s BRL1.4 billion 11th issuance of
debentures, which are backed by a corporate guarantee from CPFL
Energia. The outlook is stable.

Moody's actions follow the launch of CPFL Energia's plans to issue
new shares under a primary equity offering to increase the free
float of its capital to a minimum of 15%, as required by the
Brazilian stock exchange, B3 S.A. - Brasil, Bolsa, Balcao (Ba1
stable), to maintain the company's governance status at the highest
level ("Novo Mercado"). Proceeds from this transaction will support
the planned acquisition of a 48.4% minority interests of its
subsidiary CPFL Energias Renovaveis S.A. (CPFL Renovaveis, unrated)
that are currently owned by State Grid Brazil Power Participacoes
S.A. for approximately BRL4.1 billion.

Outlook Actions:

Issuer: COMPANHIA PTA DE FORCA E LUZ - CPFL PAULISTA

Outlook, Remains Stable

Issuer: CPFL Energia S.A.

Outlook, Remains Stable

Issuer: CPFL Geracao de Energia S.A.

Outlook, Remains Stable

Affirmations:

Issuer: COMPANHIA PTA DE FORCA E LUZ - CPFL PAULISTA

Gtd. Senior Unsecured Regular Bond/Debenture, Affirmed Ba1/Aaa.br

Issuer: CPFL Energia S.A.

Corporate Family Rating, Affirmed Ba1/Aaa.br

Issuer: CPFL Geracao de Energia S.A.

Gtd. Senior Unsecured Regular Bond/Debenture, Affirmed Ba1/Aaa.br

RATINGS RATIONALE

CPFL Energia's Ba1/Aaa.br corporate family ratings incorporate its
diversified business profile and established market position in the
Brazilian electricity market with large scale operations in the
distribution and generation segments. Moody's credit view considers
the company's high capital investment program and intra-annual
mismatch in costs and expenses provided by the current regulatory
framework dynamic, along with its evolving capital structure. CPFL
Energia's standalone credit quality ultimately reflects the
operating environment in Brazil and the highly regulated nature of
the energy sector, and as such is constrained by the sovereign
rating. The Ba1 global scale rating incorporate a one-notch uplift
from CPFL Energia's standalone credit profile, reflective of a
moderate likelihood of support from its controlling shareholder,
State Grid International Development Limited (SGID, A2 stable).

With the planned equity offering, Moody's estimates that CPFL
Energia could raise proceeds in the range of BRL3.4 billion and
BRL5.6 billion, according to the offering price and the exercise of
the additional and over-allotment issuance options, which will
provide them financial flexibility to support the majority or the
entirety of the CPFL Renovaveis' acquisition and other growth
initiatives, without negative pressure on its leverage profile. As
of March 2019, CPFL Energia presented a consolidated Net
Debt-to-Ebitda, CFO pre WC-to-Debt, and Interest Coverage ratios,
calculated according to Moody's standard adjustments, of 3.2x,
19.4%, and 3.8x, respectively.

Under a conservative scenario for the planned equity increase,
Moody's estimates the company's credit metrics will continue to
improve gradually, as reflected by a Net Debt-to-EBITDA below 3.0x.
and the CFO pre WC-to-Debt moving above 20% in the next 12 to 18
months. The improvement in the near term is supported by regulated
tariff allowances to compensate high working capital needs in 2018.
This scenario considers prospectively higher dividend distributions
starting in 2020, as per the company's revised financial policy
that encompasses a minimum 50% payout ratio, which will constrain a
more rapid pace of debt reduction. This scenario does not include
the potential synergies deriving from an incorporation of CPFL
Renovaveis into the CPFL Energia organizational structure.

After the completion of the transaction, SGID's indirect ownership
interest in CPFL Energia will reduce to the 82% - 85% range, from
94.75% it currently holds. Moody's views that timely financial
support from a foreign parent is more likely for a wholly owned
strategic subsidiary than for affiliates with minority-owned
investors. Nevertheless, Moody's understands that SGID remains
committed to support CPFL credit profile, given (i) the strategic
importance of the Brazilian operations, which represents
approximately 60% of its annual consolidated EBITDA, including CPFL
Energia (ii) structural incentives to support the company in case
of financial distress given cross-default clauses at SGID bond
indentures related to bankruptcy of any subsidiary where it holds
+50% interest; and (iii) SGID's track record of providing support
to other subsidiaries globally.

Moody's also notes the company's liquidity profile will improve
with the execution of a liability management strategy through the
end of this month comprising new debt issuances of BRL3.4 billion
that will extend its debt maturity profile to 3.7 years from 3.4
years, at a relatively lower financial cost.

The alignment of CPFL Paulista's and CPFL Geracao's ratings to the
corporate family rating assigned to CPFL Energia is based on the
guarantee and cross default clauses embedded in the various debts
issued across the corporate family and the centralized cash
management structure utilized by the group. All of the group's debt
has been issued by the operating subsidiaries, with over 95%
guaranteed by CPFL Energia, as the holding company. The debt
structures do not include limitations on dividend distributions,
aside from acceleration covenants which are based on CPFL Energia's
pro-forma consolidated Net Debt / Ebitda and Ebitda / Financial
Result. These arguments justify the assignment of senior unsecured
ratings for the CPFL Paulista's and CPFL Geracao's debt issuances
at the same level as the CPFL Energia's corporate family rating.

WHAT COULD CHANGE THE RATING UP/DOWN

CPFL Energia's ratings can be upgraded upon the perception that
support from SGID becomes more evident and/or formalized in debt
guarantees. Given the intrinsic linkages of CPFL Energia's
standalone credit quality to that of the Government of Brazil (Ba2
stable), positive rating actions in the sovereign rating can cause
upward pressure to the global scale ratings. The ratings assigned
to debt issuances of CPFL Paulista and CPFL Geracao could be
upgraded upon an upgrade to the ratings assigned to the guarantor,
CPFL Energia.

On the other hand, CPFL Energia's ratings could face downward
pressure if the stability and transparency of the regulatory regime
for the distribution and generation segments is weakened,
ultimately resulting in a perception of more volatility or decrease
of the cash flow base, causing sustainable declines in CFO pre WC
to Debt and/or Interest Coverage ratios to levels below 12.0% and
2.0x, respectively. The ratings can also be downgraded upon a
similar rating action on the sovereign rating or Moody's perception
of lower likelihood of parental support from SGID. The ratings
assigned to debt issuances of CPFL Paulista and CPFL Geracao can
also be downgraded upon a downgrade to the ratings of CPFL
Energia.

CPFL Energia is a non-operational holding company with controlling
and non-controlling interests in companies operating in the
electricity distribution, generation, transmission and
commercialization sectors in Brazil, and its related services. CPFL
Energia is among the country's largest private energy companies,
serving 9.6 million distribution clients in 687 cities through its
four distribution companies in the states of São Paulo, Rio Grande
do Sul, Parana e Minas Gerais and with more than 3.3 GW of
pro-forma generation installed capacity.

The principal methodology used in rating CPFL Energia S.A. and
COMPANHIA PTA DE FORCA E LUZ - CPFL PAULISTA was Regulated Electric
and Gas Utilities published in June 2017. The principal methodology
used in rating CPFL Geracao de Energia S.A. was Unregulated
Utilites and Unregulated Power Companies published in May 2017.




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

DOMINICAN REPUBLIC: Meeting Held on Relevance of Ports to Economy
-----------------------------------------------------------------
Dominican Today reports that President Danilo Medina held a work
meeting with international ports and logistics entrepreneurs, with
a strategic dialogue on opportunities for the Dominican Republic.

The meeting analyzed the dynamics of the country's ports and their
relevance in the process to insert them into the regional and
global economy, according to Dominican Today.

"The Head of State listened to important details regarding this
economic activity and exchanged about recent experiences and
processes and the union of the public and private sectors," the
Presidency said on its website, the report relays.

The meeting was attended by Samuel Conde, president of the
Multimodal Free Zone Caucedo, sultan Ahmed Bin Sulayem, investor,
Jack Allen, of CISCO, Antonio Junco, of Master Card, Matt Leech,
COO DP World, Pedro Brache, president of CONEP, among others, the
report notes.

As reported in the Troubled Company Reporter-Latin America on June
3, 2019, Fitch Ratings has assigned a 'BB-' rating to Dominican
Republic's DOP50.523 billion notes (equivalent to USD1 billion ),
maturing 2026 and to the USD1.5 billion bonds maturing 2049.


DOMINICAN REPUBLIC: Unions Are No-Shows at CNS Meeting
------------------------------------------------------
Dominican Today reports that the meeting of the National Salary
Committee (CNS) in the Dominican Republic failed as the unions were
no-shows, a decision labeled as irresponsible by the business
leaders.

The meeting was postponed without a date, according to Dominican
Today.

After the tripartite meeting, Dominican Industry Association
executive vice president, Circe Almanzar, said employers are "in
distress" due to the authorities' "irresponsible failure" to make
decisions and the attitude of the trade unions, the report notes.

"We the companies are in an uncertainty. And how is it possible
that we are in this situation of anxiety, of irresponsibility, of
not making decisions; we have had seven meetings, the first time we
have a situation like this and there is no decision," the report
adds.

As reported in the Troubled Company Reporter-Latin America on June
3, 2019, Fitch Ratings has assigned a 'BB-' rating to Dominican
Republic's DOP50.523 billion notes (equivalent to USD1 billion ),
maturing 2026 and to the USD1.5 billion bonds maturing 2049.



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

GRUPO POSADAS: Fitch Alters Outlook on 'B' LT IDRs to Negative
--------------------------------------------------------------
Fitch Ratings has affirmed Grupo Posadas, S.A.B. de C.V.'s Local
and Foreign Currency Long-Term Issuer Default Ratings at 'B' and
the company's National Scale Long-Term rating at 'BB+(mex)'. Fitch
revised the Rating Outlook to Negative from Stable. Fitch also
affirmed Posadas' USD393 million senior unsecured notes due 2022 at
'B'/'RR4'.

The Negative Outlook reflects Posadas' weak results and credit
metrics compared to Fitch's previous expectations; the agency base
case projections consider a recovery in operating generation in the
next 12-18 months coming from new managed hotels open in 2018-2020,
as well as the operation of recent remodeled hotels. Posadas'
EBITDA generation has been pressured by increased industry
competition and a weaker than expected national economic
environment during the second half of 2018 and the first quarter of
2019, which in turn has slowed the expected deleveraging of the
company.

Posadas' ratings are supported by its business position as a
leading hotel chain in Mexico, solid brand equity, stable occupancy
rates and broad brand portfolio. The use of multiple hotel formats
allows the company to target both domestic and international,
business and tourist travelers from different income levels,
diversifying its revenue base. Consistent product offerings and a
presence in all major urban and costal locations in Mexico have
resulted in occupancy levels above the industry average.
Conversely, Fitch incorporates into Posadas' ratings the company's
high leverage levels, negative FCF generation and the industry's
high correlation to economic cycles, which negatively affect
operating trends in downturns and increases volatility of operating
results.

The 'RR4' Recovery Rating assigned to the senior notes issuances
indicate average recovery prospects given default. 'RR4' rated
securities have characteristics consistent with historically
recovering 31%-50% of current principal and related interest.

KEY RATING DRIVERS

Leverage Remains High: Posadas' total Adjusted Debt/EBITDAR is
expected to remain above 6.0x during 2019; the strengthening of
leverage ratios could come from additional EBITDA generation as new
and newly remodelled hotel units stabilize in the mid-term. Fitch's
ratings case projections estimate that Posadas' total adjusted
leverage ratio could decrease to around 5.5x in the mid-term if the
company's EBITDA generation reaches levels seen prior to 2018.
Fitch estimates that on-balance sheet debt to remain stable while
off-balance sheet debt for year-end 2019 will be MX3,542 million,
up from the MXN3,210 million calculated for year-end 2018. Fitch's
rating case projections assume that the company will be able to
refinance the senior notes due in 2022 prior to maturity.

Negative Estimated FCF: Fitch estimates that cash outflows related
to 2017's tax settlement and capex linked to the portfolio's growth
pipeline will result in negative FCF, before asset sales, for the
following years. Fitch expects annual capex outflows of around MXN1
billion in 2020. Capex is mainly related to the remodeling of
current hotel rooms, a Live Aqua Residence Club in San Miguel de
Allende and a potential remodeling project of the existing hotel in
Corredor Reforma in Mexico City that is still under review. These
investments are expected to be funded with cash on hand from the
recent monetization of assets and internally generated cash flows.


In 2017 the company resolved all audits, fiscal credits and
observations related to the fiscal years 2007 to 2013 in a
conclusive manner. Posadas agreed to pay a total MXN2,463 million
in seven annual installments from 2017 to 2023. Management has
stated that payments will be covered by operating cash flows and
should not affect projects and investment forecasts in the
following years.

FX Exposure: Posadas has a natural hedge to exchange rate risk in
servicing its debt, with its U.S. dollar denominated revenues used
to cover USD30.9 million of interest expense annually. Around 27%
of the company's revenues are denominated in USD, since their
hotels in coastal destinations and some urban locations receive
rates in this currency. The remaining revenues are not directly
denominated in USD, but increases in hotel daily rates usually tend
to follow movements in the USD/MXN exchange rate. In addition, the
company's strategy is to maintain USD denominated cash balances. As
of March 31, 2019 56% of the company's cash balance was denominated
in USD (approximately USD74 million), while 98% of its debt balance
was denominated in this currency (USD393 million).

Solid Business Position: Posadas' ratings are supported by the
company's business position in Mexico, solid brand name and
multiple hotel formats. The company's diversified revenues are
generated from owned and leased properties, managed hotels and
vacation club membership sales and annual fees. The ratings
incorporate the industry's high correlation to economic cycles,
which negatively affect operating trends in downturns and increases
volatility of operating results. The use of multiple hotel formats
allows the company to target domestic and international business
travelers of different income levels, in addition to tourists, thus
diversifying its revenue base. Geographic diversification is
limited as Posadas' operations are primarily located in Mexico.

Stable Operating Indicators: Consistent product offering and
quality brand image have resulted in occupancy levels that are
above the industry average in Mexico. Occupancy has been relatively
stable for the past years at around 65%, above the country averages
of 60.9% and 60.9%, for YTD ending March 31, 2019 and year-end 2018
respectively, according to the Secretaria de Turismo's data.
Posadas' occupancy rates in urban destinations for YTD March 2019
were around 62%, well above the country's average of 52.5%. The
company's diverse brand portfolio allows it to offer luxury,
upscale, midscale, extended-stay and economy rooms nationwide. The
change in sales mix towards upscale hotels, in addition to robust
market demand and the strengthening of the USD-denominated rates,
has contributed to increases in Average Daily Rents (ADRs).

DERIVATION SUMMARY

Posadas is the largest hotel operator in Mexico with 177 hotels,
resorts and vacation properties in its portfolio and around 28,873
rooms. The company's hotels are located in a mix of urban and
costal destinations serving both leisure and business travelers,
with approximately 80% of rooms located in urban destinations and
20% in costal destinations. The issuer operates under multiple
formats: owned, leased, managed and franchised hotels. Fitch
estimates the total hotels in the portfolio will grow to around 204
by year end 2022. Less than 2% of these hotels will be incorporated
as wholly owned properties. Fitch believes Posadas' strategy will
continue to be focused on managed hotels as opposed to owned
hotels, which will allow the company to maintain capex levels low
as growth could be funded by third parties. Fitch estimates that
cash on hand and, to a lesser extent, cash generated from
operations will be sufficient to cover maintenance capex, growth
capex and annual tax settlement payments.

Posadas is well positioned in the domestic market in Mexico, which
remains highly pulverized. Posadas' size and geographic
diversification are smaller than global hotel operators such as NH
Hotel Group S.A. (B+/Stable) with a portfolio made up of 352 hotels
and 54,430 rooms in over 28 countries in Europe and America. After
the acquisition of NH Hotel Group by Thailand-based Minor
International (MINT) the combined worldwide network is now made up
of 516 hotels and 75,288 rooms. Its geographic footprint now
includes Asia. NH Hotel Group, like Posadas, has both urban and
costal destinations. The companies' operating metrics are in line
with industry players; Posadas' occupancy rate for YTD March 31,
2019 was 65.3%, below the 72.2% reported by NH Hotel Group. NH
Hotel Group's ADRs of slightly over USD115 per night are higher
than Posadas as its portfolio is mainly made up of upscale hotels.
Posadas, with a portfolio geared towards customers of different
income levels, has average daily rates of around USD72 per night.

Business models for these companies differ, since Posadas has
migrated to an asset-light structure where strategic hotels are
owned and growth is coming mostly from managed hotels, while NH
remains a more asset-heavy hotel group; managed properties now make
up around 12.5% of the NH's 352 hotel portfolio. Fitch estimates
that Posadas' capital investments and tax settlement payments could
result in negative FCF for the following four years while NH capex
levels would allow it to maintain neutral FCF generation. Posadas'
adjusted leverage ratio is higher than NH and Fitch estimates that
NH could reach total adjusted leverage ratios below 5.0x in the
short term while Posadas is estimated to reach those levels until
2021.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for Posadas
include:

  - Future growth focuses on managed properties so portfolio mix
    moves away from owned and leased properties;

  - Sales for the vacation club segment increase from the addition
    of new properties;

  - Broadly stable KPIs in the short to medium term;

  - EBITDA Margins temporarily low;

  - Capital expenditures reflect expected growth pipeline and
    recurring maintenance Capex.

  - Tax settlement payment outflows from 2018-2023.

  - The company does not issue additional debt, and Fitch
    assumes a successful refinancing of the 2022 notes;

  - Gross adjusted leverage levels strengthen to around
    5.0x-4.5x in the mid-term.

The recovery analysis assumes that Grupo Posadas would be
considered a going-concern in bankruptcy and that the company would
be reorganized rather than liquidated. Fitch has assumed a 10%
administrative claim. The going-concern EBITDA estimate reflects
Fitch's view of a sustainable, post-reorganization EBITDA level
upon which Fitch bases the valuation of the company.

The post-reorganization EBITDA assumption is MXN799.9 million, it
represents close to 35% of discount estimated EBITDA generation for
2019 and covers interest payments and maintenance capex, reflecting
a distressed level of revenue generation across business lines. An
EV multiple of 5.0x was used to calculate a post-reorganization
valuation based on the industry multiple, which was adjusted for
the country risk premium.

Fitch calculates the recovery prospects for the senior unsecured
notes in the 31% to 50% range based on a waterfall approach. This
level of recovery results in the company's senior unsecured notes
being rated the same as its IDR of'B'/'RR4'. The 'RR4' Recovery
Rating assigned to the senior notes issuances indicate average
recovery prospects given default.

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Positive Rating Action

  - Stable EBITDA generation and a strengthening in the margin;

  - Consolidating gains in operating indicators;

  - A proven track record of stronger and stable credit metrics,
    such as adjusted debt/EBITDAR consistently below 4.5x.

Developments That May, Individually or Collectively, Lead to
Negative Rating Action

  - Weakening operating trends or decreases in RevPAR that could
    lead to lower EBITDA and cash flow levels.

  - Contingent issues that limit the issuer's ability to generate
    cash.

  - Cash outflows or incurring debt that result in Total adjusted
    debt/EBITDAR consistently higher than 5.5x.

LIQUIDITY

Adequate Liquidity: The sale of assets in 2018 provided the
necessary funds to cover current development pipeline. Fitch does
not perceive short-term liquidity issues as Posadas' senior notes
mature until 2022. Cash balances as of March 31, 2019 were MXN2,637
million, which include a U.S. dollar position of around USD74
million.

FULL LIST OF RATING ACTIONS

Fitch has affirmed the following ratings:

Grupo Posadas, S.A.B. de C.V.

Local Currency and Foreign Currency Long-Term IDRs at 'B';

National Scale Long-Term rating at 'BB+(mex)';

USD393 million senior unsecured notes due 2022 at 'B'/'RR4'.

The Rating Outlook is revised to Negative from Stable.


MEXICO: Top Diplomat Sees High Probability of Reaching Deal w/US
----------------------------------------------------------------
The Latin American Herald Tribune reports that Mexican Foreign
Relations Secretary Marcelo Ebrard said that there was an 80
percent chance of reaching "an understanding" with the United
States to address "the important rise in the migratory flow" and
avoid the imposition of tariffs threatened by President Donald
Trump.

"We are working to reach an understanding. It's feasible and
desirable.  80/20 today in favor of getting it done," Mr. Ebrard
said in a Twitter post, according to The Latin American Herald
Tribune.

"At June 5's meeting, which we expect to be a long meeting, (we
will be) starting with the position that Mexico is already making a
very big effort and we share the concern, (we) think that there can
be a solution to the important rise in the migratory flow that we
are experiencing," Mr. Ebrard said earlier in a press conference in
Washington, the report notes.

The foreign relations secretary is scheduled to meet with his
American counterpart, Mike Pompeo, and said he hoped to "find a
point of agreement," the report relays.

Trump, who is in the United Kingdom on an official state visit,
appeared more pessimistic about the possibility of reaching a deal
with Mexico, saying in a press conference in London that the
tariffs on Mexican products would probably take effect, the report
discloses.

The report relays that the US president said he hoped the meetings
with Mexican officials in Washington would lead to a deal that
avoided the imposition of 5 percent tariffs on June 10.

In response to a question about whether Republican lawmakers might
try to block the tariffs, Trump played down the possibility, saying
that he had "record" support among members of his party, the report
says.

Ebrard arrived in Washington with a large delegation that includes
Economy Secretary Graciela Marquez; Agriculture Secretary Victor
Villalobos; and Foreign Relations Undersecretary for North America
Jesus Seade, the report relays.

The report discloses that Marquez and Villalobos met with Commerce
Secretary Wilbur Ross and Agriculture Secretary Sonny Purdue,
respectively.

Seade is scheduled to meet with US Trade Representative Robert
Lighthizer.

Mexican President Andres Manuel Lopez Obrador defended his policy
of dialogue with Washington in a press conference, saying it was
part of a "strategy" to keep the situation calm, the report
relays.

"We have a strategy so that there will be confidence and certainty,
so there will not be fear," Lopez Obrador said, the report notes.

Trump said his administration would impose escalating tariffs on
Mexico unless that country took aggressive steps to stop the flow
of illegal migrants from Central America, the report notes.

Trump said in a Twitter post that he would impose a 5 percent
tariff starting June 10 on all Mexican imports unless the
neighboring country halted the northward flow of US-bound migrants,
the report says.

"The Tariff will gradually increase until the Illegal Immigration
problem is remedied," the US president said, the report notes.

"We're not going to get caught up in a confrontation and we think
that we can reach an agreement with the government of the United
States . . . We want to continue being friends with President
Donald Trump," the Mexican president said, the report adds.


MEXICO: Warns More US Tariffs Could Worsen Illegal Immigration
--------------------------------------------------------------
RJR News report that Mexico has warned US President Donald Trump
that tariffs on Mexican goods could worsen illegal immigration to
the US and end up hurting both countries.

The warning came as Mr. Trump tweeted that Mexico could stop the
flow of people and drugs across the border if they wanted to,
according to RJR News.

Mexican and US officials are in talks while Mr. Trump is in the UK,
the report notes.

Mr. Trump has said he plans to impose a five per cent duty on all
Mexican goods, the report adds.




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

CORPORACION NAVIOS: Fitch to Rate $483MM Secured Notes 'BB+(EXP)'
-----------------------------------------------------------------
Fitch Ratings has assigned a 'BB+(EXP)' rating to the proposed
senior secured notes to be issued by Corporacion Navios S.A. in the
amount of US483 million, maturing in 2037. The Rating Outlook is
Stable.

RATING RATIONALE

The rating reflects revenues supported by a long-term take or pay
(ToP) contract with a strong counterparty, the ability to adjust
tariffs annually by inflation and exchange rate and the recently
constructed terminal in a strategic location. The rating is further
supported by an adequate debt structure, with standard project
finance features and back-loaded amortization profile. Under the
rating case, Navios presents minimum and average DSCR of 1.10x and
1.15x, respectively. Leverage peaks at 11.8x upon issuance, slowly
delevering to 5.0x in 2030. Credit metrics are adequate for the
assigned rating, according to applicable criteria, in light of the
resilience of the revenue under the ToP contract.

KEY RATING DRIVERS

Long-Term Take-or-Pay Contracts [Revenue Risk: Volume - Midrange]:


Navios is a recently built iron ore transhipment terminal,
strategically located in a waterway at the tax-free zone in Nueva
Palmira, Uruguay. It benefits from a 20-year ToP contract with Vale
International, subsidiary of Vale S.A (BBB-/Rating Watch Negative
[RWN]). The ToP has already been tested and proved strong, backed
by a favorable ruling by the London Arbitration tribunal. The
contract establishes a minimum guaranteed quantity of 4 million
tons per annum and includes an incremental volume of 2 million tons
per year that is exercisable at Vale's option.

ToP Tariffs Track Inflation and FX Rate [Revenue Risk: Price -
Stronger]:

The ToP contract is annually adjusted based on the U.S. Inflation,
Uruguayan annual labor inflation and exchange rate. It also
establishes that the tariff adjustment formula should be reviewed
every three years, after which it could be reduced in so far as
there is an agreement between the two parties.

Required Investment for Ramp-up Phase Completed [Infra.
Development/Renewal - Midrange]:

The terminal is specialized in iron ore transhipment and was built
to meet Vale's specifications. It was constructed with proven and
resilient technology, appropriate for a bulk handling of minerals.
Navios also has the ability to stockpile 700,000 tons of storage
capacity, being able to suit both oceangoing vessels and river
barges. Over the life of the ToP, future investment should be
limited to maintenance and crane replacement, with the midrange
assessment explained by the short track record of operation.

Standard Back-Loaded Debt Structure [Debt Structure - Midrange]:

The rated notes are senior, fixed-rate and fully amortizing. Some
backloading is present as 73.8% of the debt is amortized from
2030-2037. The debt structure includes a six-month debt service
reserve as well as distribution trigger at 1.10x, that provides
additional support to the project under stressed scenarios.

Financial Profile

Under the rating case, Navios presents a stable debt service
coverage profile, with a minimum DSCR of 1.10x and average DSCR of
1.15x. Peak leverage occurs in the first year at 11.8x, gradually
deleveraging to approximately 5.0x in 2030. The OPEX breakeven is
considered strong, with the project being able to withstand an OPEX
and General and Administrative Expenses (G&A) increase of 74.6%
(considering the usage of the pre-funded DSRA) and still honor debt
service.

PEER GROUP

Navio's closest peer is THPA Finance Limited, whose senior debt is
rated 'BBB' with a Stable Outlook. Also a single asset, THPA
equally presents a volume assessment of midrange due to its
exposure to volatile cargo types and customer concentration.
However, it has stronger coverage metrics then Navios, with a
rating case average of 1.40x.

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Negative Rating Action:

  - DSCR profile consistently below 1.10x, under rating case.

Developments That May, Individually or Collectively, Lead to
Positive Rating Action:

  - DSCR profile consistently above 1.20x, under rating case, to
the extent that the offtaker counterparty credit quality does not
constrain the rating.

TRANSACTION SUMMARY

Navios expects to issue senior secured notes in the amount of
USD483 million with a final maturity in August 2037 and a maximum
fixed interest rate of 7% per year. The proposed notes amortization
schedule is customized and should be paid in semi-annual
instalments. The amortization is backloaded with 73.8% of principal
is due between 2030 and 2037. The debt structure benefits from a
debt service reserve account of six months and a dividends
distribution test of 1.10x DSCR.

The proceeds of the offering will be distributed to the parent
company, Navios South American Logistics Inc. to pay off corporate
level debt.

FINANCIAL ANALYSIS

Fitch Cases

Fitch scenarios reflect the following macroeconomic assumptions:
UYU CPI of 7.8% in 2019 and 7.5% in 2020, and a UYU/USD annual
average exchange of 34.71 in 2019 and 36.88 in 2020. US CPI was
considered at 2.2% (2019) and 2.3% (2020).

From 2021 onwards, the UYU CPI and the US CPI were considered at
7.5% and 2.0%, respectively. The UYU labor inflation was considered
2.0% higher than UYU CPI throughout the life of the debt.

Fitch's base case incorporates the minimum guaranteed throughput of
four million tons per year, the adjustment of tariffs according to
ToP formulas, operating expenses 5% higher than sponsor cases and
an investment of USD6.56 million in 2029 to replace the cranes.
Under Fitch's base case assumptions, average and minimum DSCRs are
1.20x and 1.14x, respectively.

Fitch's rating case reflects a reasonably likely combination of
uncorrelated stresses that could occur in a given year but are not
expected to persist every year. Fitch's rating case incorporates
the minimum guaranteed throughput of four million tons per year,
the adjustment of tariffs according to ToP formulas, operating
expenses 10% higher than base case and an investment of USD7.18
million in 2029 to replace the cranes. Under rating case
assumptions, average and minimum DSCRs are 1.15x and 1.10x,
respectively.

Asset Description

Navios completed the construction of the new iron ore transhipment
terminal in April 2017. The terminal is a state-of-the-art iron ore
transhipment facility located in the tax-free zone in Nueva
Palmira, Uruguay. The terminal has an annual throughput capacity of
10 million tons and static storage capacity of 700,000 tons.

The port is also located in an advantageous location, at the mouth
of the river, where the confluence of the Parana and Uruguay Rivers
meet the Atlantic, which suits both oceangoing vessels and river
barges.

Navios entered into a 20-year ToP contract with Vale International
SA. The ToP contract establishes a Minimum Guaranteed Quantity of
four million tons per annum and contemplates an incremental volume
of two million tons per year exercisable at Vale's option. Vale
International SA is a full subsidiary of Vale S.A (BBB-/RWN).

Per the readjustment formula established in the contract, 75% of
the tariff readjustment is based on the US CPI plus a fixed 2%
annual increase, while the remaining 25% of the tariff readjustment
is based on the rate of annual salary inflation in Uruguay as
recorded by the IMS Index (Indice Mensual de Salarios), and further
adjusted for any variation in the U.S. dollar to UY pesos exchange
rate.




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

VENEZUELA: Defaults on Gold Swap With Deutsche Bank
---------------------------------------------------
Patricia Laya at Bloomberg News reports that Venezuela has
defaulted on a gold swap agreement valued at $750 million with
Deutsche Bank AG, prompting the lender to take control of the
precious metal used as collateral and close out the contract,
according to two people with direct knowledge of the matter.

As part of a financing agreement signed in 2016, Venezuela received
a cash loan from Deutsche Bank and put up 20 tons of gold as
collateral, according to Bloomberg News.  The agreement, which was
set to expire in 2021, was settled early due to missed interest
payments, said the people, who asked not to be named speaking about
a private matter, Bloomberg News relays.

In the meantime, opposition leader Juan Guaido's parallel
government has asked the bank to deposit $120 million into an
account outside President Nicolas Maduro's reach, which represents
the difference in price from when the gold was acquired to current
levels, Bloomberg News says.  As part of efforts to unseat Maduro,
the U.S. and more than 50 countries have recognized Guaido as the
legitimate leader of Venezuela even though he still doesn't control
key institutions at home, including the central bank, Bloomberg
News notes.

"We're in touch with Deutsche Bank to negotiate the terms under
which the difference owed to the central bank will be paid to the
legitimate government of Venezuela," said Jose Ignacio Hernandez,
Guaido's U.S.-based attorney general, Bloomberg News relays.
"Deutsche Bank can't risk negotiating with the central bank's
illegitimate authorities," particularly after it was sanctioned by
the U.S. government, Hernandez said, Bloomberg News notes.

Bloomberg News discloses that it's the second time this year that
the Maduro regime has failed to make good on financing agreements,
which have resulted in losses at a time when reserves are at a
record low.  Dwindling gold holdings have become one of Maduro's
last-remaining sources to keep his regime afloat and his military
forces loyal, Bloomberg News says.  The central bank missed a March
deadline to buy back gold from Citigroup Inc. for nearly $1.1
billion. Before that, the Bank of England refused to give back $1.2
billion worth of Venezuelan gold, Bloomberg News notes.

While Maduro's regime is becoming increasingly cut off from the
global financial network due to sanctions, it still managed to sell
$570 million in gold last month, prompting reserves to tumble to a
29-year low of $7.9 billion, Bloomberg News relays.  The government
blew through more than 40% of Venezuela's gold reserves last year,
selling to firms in the United Arab Emirates and Turkey in a bid to
fund government programs and pay creditors, Bloomberg News adds.

Venezuela defaulted on its dollar-denominated bonds in late 2017.

As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings in May 2018 removed its long- and short-term local
currency sovereign credit ratings on Venezuela from CreditWatch
with negative implications and affirmed them at 'CCC-/C'. The
outlook on the long-term local currency rating is negative. At the
same time, S&P affirmed its 'SD/D' long- and short-term foreign
currency sovereign credit ratings on Venezuela.  S&P's transfer and
convertibility assessment remains at 'CC'.



                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

Copyright 2019.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
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.


                  * * * End of Transmission * * *