/raid1/www/Hosts/bankrupt/TCRLA_Public/190610.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, June 10, 2019, Vol. 20, No. 115

                           Headlines



A R G E N T I N A

JOHN DEERE XVIII: Moody's Gives B1 Global Rating to Unsec. Debt
[*] ARGENTINA: Statement by IMF on Meeting With Economy Minister


C U B A

CUBA: US Cruise Operators Stop Sailing to Country


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: 7 Major Dams in 'Frank' Recovery From Rains
REFIDOMSA: Withholds US$30 Million on Venezuelan Limbo


M E X I C O

MEXICO: Republican Senators Opposed to Trump's Threat of Tariffs
MEXICO: Sees Progress in Tariff Talks, But U.S. Wants More
PETROLEOS MEXICANOS: Fitch Lowers LT IDRs to 'BB+', Outlook Neg.


P E R U

INTERBANK: Moody's Hikes Jr. Subordinated Debt Rating to Ba2(hyb)


P U E R T O   R I C O

KONA GRILL: Seeks to Hire Epiq as Administrative Advisor


V E N E Z U E L A

VENEZUELA: Maduro Says Border With Colombia to Reopen


X X X X X X X X

[*] BOND PRICING: For the Week June 3 to June 7, 2019

                           - - - - -


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A R G E N T I N A
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JOHN DEERE XVIII: Moody's Gives B1 Global Rating to Unsec. Debt
---------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has assigned
a B1 global scale and a Aa2.ar national scale foreign currency debt
rating to John Deere Credit Compania Financiera S.A. (JDC)'s Class
eighteen senior debt issuance. The issuance for up to $75 million
will be due in 12 months.

The following ratings were assigned to JDC's Class XVIII senior
unsecured debt issuance:

B1 Global Foreign Currency Debt Rating

Aa2.ar Argentina National Scale Foreign Currency Debt Rating

RATINGS RATIONALE

JDC's debt ratings capture its standalone credit assessment of b2
and incorporates Moody's assessment of a high probability of
support from its ultimate parent, Deere & Company (A2 stable),
reflecting the strategic importance of the Argentine subsidiary as
the captive finance company for agricultural machinery. The
parental support has been evidenced through several capital
injections as well as the provision of credit lines and guarantees
backing specific credit facilities. The ratings also factor JDC's
modest asset quality and profitability, its weak capitalization,
the exposure to climate risk and the recessionary conditions in
Argentina, characterized by low economic growth and high inflation
rates.

JDC finances the biggest portion of Deere & Company's financed
sales of agricultural machinery in Argentina, where the
manufacturer commands important market share. As a result, JDC's
loan volumes are closely aligned to the manufacturer's activity.

JDC's lending book expanded by around 45% y-o-yin dollars as of
March 2019, boosting the company fee and interest income. However,
rising funding and credit costs and growing expenses pushed down
the net income to average managed asset ratio to 1.1% from 1.9%
during the same period. Moody's expects earnings to remain
challenged by the moderation in business volumes over the next 12
months, high inflation and high interest rates.

As of March 2019, non-performing loans were at a very high 5.7% of
its total loans, below the 6.2% posted in year-end 2018, inherent
to agribusiness volatility. Moody's expects this ratio to improve
in the coming quarters given the seasonality of JDC's business and
its highly collateralized loan book. Moreover, prospects of a very
favorable crop in 2019 will help to offset the negative effects of
the weak current scenario.

To support JDC's operations, its parent company has invested in
JDC's perpetual bonds, and has made capital injections of $11.5
million over the past two years. Just recently, in May 2019, JDC
received additional $3 million that improved its modest
capitalization -- the company's tangible common equity to tangible
managed assets rose to an estimated 4.2% as of May in line with the
4.15% as of year-end 2018, while the total capital ratio rose to an
estimated 9.4%. The company expects to receive additional
contributions in the second half of 2019.

Moody's noted that JDC's reliance on market funds, typical of
finance companies, is mitigated by credit lines provided by its
parent company, and the gradual diversification of domestic funding
providers. Funding support counterbalances the credit challenges
related to JDC's weak capitalization, modest asset risk and
profitability, and the lack of diversification inherent in the
company's monoline business model.

JDC's global senior unsecured foreign currency debt rating is
constrained by Argentina's B1 foreign currency bond ceiling.
Reflecting this constraint, the Aa2.ar national scale rating
assigned to the notes is the highest national scale rating
corresponding to a global scale rating of B1.

WHAT COULD CHANGE THE RATING -- DOWN/UP

The global scale foreign currency debt rating is constrained by
Argentina' sovereign bond ceiling, and therefore, an upgrade of
Argentina's sovereign bond rating could put upward pressure on the
global scale rating. Conversely, a downgrade of the Argentine
sovereign rating could put downward pressure on the entity's global
scale ratings. In addition, the ratings would be under pressure if
JDC's asset quality, and/or capital adequacy remain at current
levels, and/or its core earnings profile suffered a substantial
deterioration.


[*] ARGENTINA: Statement by IMF on Meeting With Economy Minister
----------------------------------------------------------------
Christine Lagarde, Managing Director of the International Monetary
Fund (IMF), met with Economy Minister Nicolas Dujovne and Central
Bank Governor Guido Sandleris on the sidelines of the G20 Finance
Ministers and Central Bank Governors in Fukuoka, Japan.

At the conclusion of the meeting, Madame Lagarde issued the
following statement:

"It was a pleasure to meet Minister Nicolas Dujovne and Central
Bank Governor Guido Sandleris in Fukuoka. We exchanged views on
recent developments in the world economy and Argentina's outlook.

"The authorities' continued policy efforts have led to important
progress, including on the fiscal and current accounts. The
Argentine authorities and the staff team continue working on the
fourth review of the Stand-By Arrangement.

"I would like to reiterate the Fund's commitment to support
Argentina's policy efforts to address its economic challenges.
Steadfast implementation of Argentina's economic program will help
further stabilize the economy and lay the ground for sustainable
and inclusive growth."

                            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.




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C U B A
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CUBA: US Cruise Operators Stop Sailing to Country
-------------------------------------------------
Trinidad Express reports that major US cruise operators said they
will no longer sail to Cuba following the Trump administration's
ban on travel to the Caribbean island, angering travelers and
prompting worries about trip cancellations and company earnings.

The new restrictions are aimed at pressuring Cuba's Communist
government to reform and stop supporting Venezuelan President
Nicolas Maduro, according to Trinidad Express.

"Due to changes in US policy, the company will no longer be
permitted to sail to Cuba effective immediately," Carnival Corp
said, the report relays.




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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: 7 Major Dams in 'Frank' Recovery From Rains
---------------------------------------------------------------
Dominican Today reports that the Dominican Republic's  dams are in
frank recovery, from the rains in recent days, the dams and canals
agency (Indrhi) reported.

It said seven reservoirs increased their levels significantly, due
to the rains in the basins of the rivers that feed them, according
to Dominican Today.  "Tavera-Bao, Jimenoa and Lopez Angostura
reservoirs, which are supplied by the Yaque del Norte River,
emerged from the critical situation caused by the dry season," the
report notes.

Indrhi said the reservoirs Sabana Yegua, which is supplied by the
Yaque del Sur river; Moncion, fed by the rivers Mao and Sabaneta
that depends on the San Juan river, maintain a progressive increase
of their water levels, the report relays.

"The Rincon Dam, built on the Jima River; Valdesia, in the Nizao
basin, as well as Hatillo and Pinalito that depend on the waters of
the Yuna river, also continue in frank recovery," 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.


REFIDOMSA: Withholds US$30 Million on Venezuelan Limbo
------------------------------------------------------
Dominican Today reports that Dominican Petroleum Refinery
(Refidomsa) president Felix Jimenez affirmed that six months ago,
Venezuela stopped all participation in its management, despite its
49% stake.

Mr. Jimenez revealed that the government withholds around US$30
million from the Venezuelan government's dividends of 2017 and
2018, according to Dominican Today.

The official also revealed that the RD$3.0 million monthly paid to
the Venezuelan embassy for cultural programs was also suspended,
the report notes.

"Of the fiscal year of 2017 to Venezuela, they corresponded little
more than 40 million dollars of which they withdrew half and there
were almost 20 million dollars that they did not retire and when
they wanted to retire it, from 2017 an assembly has not been made
to arrange of the dividends of 2018, because of the limbo, we do
not accept the delegation of president (Nicolas) Maduro in the
direction of the company, but we do not give the benefits to those
who would represent Juan Guaido, which is the other part of the
Venezuelan government, that legal limbo it takes us to keep their
money in the bank," the report quoted Mr. Jimenez as saying.

He added that the Dominican authorities will hand over the funds
when in Venezuela there is a "legitimately constituted government,
recognized by the people of Venezuela and the international
community," 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.




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M E X I C O
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MEXICO: Republican Senators Opposed to Trump's Threat of Tariffs
----------------------------------------------------------------
RJR News reports that Republican senators have expressed deep
opposition to US President Donald Trump's threatened tariffs on
goods coming to the US from Mexico.

In a closed meeting with White House officials, senators said they
were considering moves to block the tariffs, according to RJR
News.

Mr. Trump, who is on a state visit to the UK, said Republicans
would be "foolish" to try and stop him, the report notes.

He has said he plans to impose a five per cent duty on all Mexican
goods from next week, the report adds.

As reported in Troubled Company Reporter-Latin America on May 5,
2016, Moody's de Mexico upgraded State of Mexico's issuer ratings
to Ba1 (Global Scale, local currency) and A1.mx (Mexico National
Scale) from Ba2 and A2.mx, respectively.  The outlook on issuer
ratings was changed to negative.  This concludes the review that
began on April 1, 2016, when the rating was put under review with
uncertain direction.


MEXICO: Sees Progress in Tariff Talks, But U.S. Wants More
----------------------------------------------------------
Beatriz Pascual Macias at EFE News reports that the Mexican
government said that there has been "progress" in the negotiations
with the United States on immigration and tariffs, but the White
House feels that the Mexican proposals are not enough to avoid the
imposition of 5 percent tariffs on imports from that country from
early next week.

The second day of talks between the US and Mexico took place at two
locations -- the State Department and the White House -- where the
two delegations held meetings, according to EFE News.

In remarks to media, Vice President Mike Pence said that "Mexico
needs to do more" to deal with what he called a "humanitarian
crisis" on the US-Mexico border, where thousands of Central
American immigrants have arrived after traveling through Mexican
territory trying to get to the US, the report notes.

"And our message to the Mexican delegation and our message to the
Mexican government is the time has come for Mexico to act
decisively to work with the United States of America to assist us
in enforcing our laws by enforcing their laws, by securing their
border," said Pence, who led negotiations with the Mexican
delegation, the report relays.

The head of the Mexican delegation, foreign minister Marcelo
Ebrard, met with officials from the State Department and said, on
leaving the meeting, that there had been "progress," the report
discloses.

"We're going to continue the talks this afternoon. They still have
not concluded  I think that we're making progress and in the
afternoon we could have a more specific view of where we are," said
Ebrard, who was accompanied by Alejandro Celorio, the legal adviser
for Mexico's foreign ministry, the report relays.

Celorio also held meetings with US officials at the White House,
the report notes.

After that meeting, White House Press Secretary Sarah Sanders told
EFE that the US's stance "has not changed" after the latest talks
with the Mexican delegation and that "we are still moving forward
with tariffs at this time."

At present, neither the US government nor Mexico have made public
the content of their talks, which are focused on reaching an
agreement on immigration that can convince Trump not to impose 5
percent tariffs on all Mexican imports starting, the report
relays.

The only thing that Mexican President Andres Manuel Lopez Obrador's
administration has made public is its offer to send 6,000 members
of the National Guard to the border with Guatemala to stop the flow
of Central American immigrants, the report notes.

Ebrard explained that "the National Guard will be in the southeast
of the country. It will be throughout the country but will have
priority in the south of the country," and added that this matter
has already been raised with the US government during the meetings
in Washington, the report says.

The National Guard is a security force created by Lopez Obrador
this year, consisting of soldiers, sailors and police officials and
it is led by a retired military officer, the report ntes.

For Mexico, the US is its main trading partner and they shipped
products worth $328 billion -- mainly vehicles and vehicle
components -- to its northern neighbor during the first 11 months
of 2018, representing 79.4 percent of the country's total exports,
the report adds.

As reported in the Troubled Company Reporter-Latin America on
May 5, 2016, Moody's de Mexico upgraded State of Mexico's issuer
ratings to Ba1 (Global Scale, local currency) and A1.mx (Mexico
National Scale) from Ba2 and A2.mx, respectively.  The outlook on
issuer ratings was changed to negative.  This concludes the review
that began on April 1, 2016, when the rating was put under review
with uncertain direction.


PETROLEOS MEXICANOS: Fitch Lowers LT IDRs to 'BB+', Outlook Neg.
----------------------------------------------------------------
Fitch Ratings has downgraded Petroleos Mexicanos' (PEMEX) Long-Term
Foreign and Local Currency Issuer Default Ratings to 'BB+' from
'BBB-'. The Rating Outlook is Negative. The downgrade applies to
approximately USD80 billion of notes outstanding.

This rating action follows the downgrade of Mexico's sovereign
Foreign and Local Currency Long-Term IDRs to 'BBB' from 'BBB+' and
the revision of the sovereign's Outlook to Stable from Negative.
The downgrade of Mexico's IDRs reflects a combination of the
increased risk to the sovereign's public finances from Pemex's
deteriorating credit profile together with ongoing weakness in the
macroeconomic outlook, which is exacerbated by external threats
from trade tensions, some domestic policy uncertainty and ongoing
fiscal constraints.

PEMEX's Negative Outlook reflects the potential for further
deterioration of the company's stand-alone credit profile to below
'ccc'. Although PEMEX has implemented some cost cutting measure and
received moderate tax cuts from Mexico, the company continues to
severely underinvest in its upstream business, which could lead to
further production and reserves decline. The very high level of
transfers from PEMEX to the Mexican government continues to
significantly pressure PEMEX's cash flow generation and
reinvestment ability and weaken its SCP.

KEY RATING DRIVERS

PEMEX's ratings are two notches below those of the sovereign as a
result of the company's weak SCP and slow government action to
strengthen PEMEX's capital structure. This is an indication that
the government has not recognized the viability of the company's
financial profile and/or the strategically important role PEMEX
plays for the government and the country. PEMEX's SCP of 'ccc'
prevents Fitch from assessing the government's incentives to
support the company as "very strong", and the current assessment
for the incentive factors is "strong". Further weakening of the
company's SCP could lead Fitch to assess the incentives as
"moderate", which could result in negative rating actions for the
company independent of the sovereign.

Fitch assesses the government's ownership and control of PEMEX as
"very strong" and considers Mexico's support track record for the
company marginally "moderate". This assessment reflects the very
high level of transfers to the government at the expense of
underinvestment in the company's business. The government support
track record could be revised to "strong" as a result of a material
reduction in taxes and capitalization to reduce debt, which could
bode positively for PEMEX's credit quality. PEMEX's Outlook could
be stabilized if PEMEX is allowed to retain enough of its internal
cash flow generation to sustainable stabilize production profitably
and replenish reserves.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within PEMEX's Rating Case:

  -- Average West Texas Intermediate (WTI) crude prices of
USD57.5/bbl in 2019 and USD55/bbl in the long term:

  -- Upstream capex continues in line with the last three years
average;

  -- Production declines by 5% per year over the next few years;

  -- PEMEX will receive necessary support from the government to
ensure adequate liquidity and debt service payments.

RATING SENSITIVITIES

Although not expected in the short term, developments that may,
individually or collectively, lead to positive rating action for
PEMEX include:

  -- An upgrade of Mexico's sovereign ratings;

  -- An irrevocable guarantee from Mexico's government sovereign of
sustainably more than 75% of PEMEX's debt;

  -- A material capitalization coupled with a material reduction of
PEMEX taxes together with a business plan that results in neutral
to positive FCF through the cycle, while implementing a sustainable
upstream capex that is sufficient to replace 100% of reserve and
stabilize production profitably;

  -- A sustainable FFO adjusted leverage below 5x.

PEMEX's Outlook could stabilize through a material costs savings
and tax reductions that allows the company to have neutral to
positive FCF through the cycle, while implementing a sustainable
upstream capex that is sufficient to replace 100% of reserve and
stabilize production profitably.

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

  -- Although not expected in the short term, a downgrade of
Mexico's sovereign rating;

  -- A sustain deterioration of PEMEX's financial flexibility
coupled with government inaction to support liquidity. This could
result from continue negative FCF and/or a material reduction of
the company's cash on hand, credit facilities and/or restricted
capital markets access;

  -- A FFO adjusted leverage materially above 8x and total debt to
1P reserve significantly higher than USD15/boe;

  -- A continue deterioration of the company's SCP to below the
current 'ccc' assessment, which could result if the company fails
to stabilize production and continues with unsustainable reserves
replacement ratios and negative FCF.

FULL LIST OF RATING ACTIONS

Fitch has downgraded the followings:

PEMEX

  -- Long-Term Foreign Currency Issuer Default Rating (IDR) to
'BB+' from 'BBB-'; Outlook Negative;

  -- Long-Term Local Currency IDR to 'BB+' from 'BBB-'; Outlook
Negative;

  -- Notes outstanding in foreign currency to 'BB+' from 'BBB-';

  -- Notes outstanding in local currency to 'BB+' from 'BBB-'.




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INTERBANK: Moody's Hikes Jr. Subordinated Debt Rating to Ba2(hyb)
-----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings and assessments
of Banco Internacional del Peru - Interbank. Moody's upgraded to
Baa1, from Baa2, Interbank's global local and foreign currency
deposit and senior unsecured debt ratings, and to Baa3, from Ba1,
its subordinated debt rating. This follows the upgrade of
Interbank's baseline credit assessment and adjusted BCA to baa2,
from baa3. Interbank's long term counterparty risk rating was
upgraded to A3 from Baa1, and its long term counterparty risk
assessment (CRA) was upgraded to A3(cr) from Baa1(cr). Finally,
Moody's upgraded Interbank's junior subordinated debt rating to Ba2
(hyb), from Ba3 (hyb). At the same time, Moody's affirmed the P-2
short term local and foreign currency deposit ratings and CRR, and
the P-2 (cr) short term CRA.

At the same time, Moody's upgraded Banco Internacional del Peru
(Panama Branch)'s long term CRR to A3, from Baa1, and its long term
CRA to A3(cr), from Baa1(cr). Moody's upgraded the foreign currency
senior unsecured debt rating to Baa1 from Baa2, and affirmed
Interbank's short term CRR and CRA of P-2 and P-2(cr)
respectively.

The outlook on all the ratings is now stable.

The following ratings of Interbank were upgraded:

  - Long Term Foreign and Local Currency Deposit ratings to Baa1
from Baa2, with stable outlook (changed from positive).

  - Foreign Currency Senior Unsecured debt rating to Baa1 from
Baa2, stable outlook (changed from positive).

  - Foreign Currency Subordinated Debt rating to Baa3 from Ba1

  - Foreign Currency Backed Junior Subordinated to Ba2 (hyb) from
Ba3 (hyb)

  - BCA to baa2 from baa3

  - Adjusted BCA to baa2 from baa3

  - Long Term Counterparty Risk Assessment to A3(cr) from Baa1(cr)

  - Long Term Counterparty Risk Rating in local and foreign
currency to A3 from Baa1

The following ratings of Interbank were affirmed:

  - Short Term Foreign and Local Currency Deposit ratings of P-2

  - Short Term Counterparty Risk Assessment of P-2(cr)

  - Short Term Counterparty Risk Rating in local and foreign
currency of P-2

Outlook, Changed To Stable from Positive

The following ratings of Interbank (Panama Branch) were upgraded:

  - Foreign Currency Senior Unsecured debt rating to Baa1 from
Baa2, stable outlook (changed from positive)

  - Long Term Counterparty Risk Assessment to A3(cr) from Baa1(cr)

  - Long Term Counterparty Risk Rating to A3 from Baa1

The following ratings of Interbank (Panama Branch) were affirmed:

  - Short Term Counterparty Risk Assessment of P-2(cr)

  - Short Term Counterparty Risk Rating of P-2

Outlook, Changed To Stable from Positive

RATINGS RATIONALE

The upgrade of Interbank's BCA and its ratings is based on the
strength of Interbank's balance sheet and its recurring
profitability, and Moody's expectation of the sustainability of its
financial performance. Interbank's sound earnings generation
ensured that its capitalization remained stable despite robust loan
growth over the past two years, while the supportive operating
environment and Interbank's diversified loan mix contributed to the
good performance of the bank's loan book.

Moody's views Interbank's leading market positions in credit cards
and personal loans as ensuring strong pricing power, which combined
with risk discipline through the economic cycle, have led to high,
sustainable profitability. Over the past quarters, Interbank's net
income has risen to a robust 2.4% of tangible assets as of 1Q 2019,
up from 2.2% in 2018 and 2% in year-end 2017, as a result of above
average loan growth and increasing contribution from fee based
business and security gains. Interbank's ample net interest margin
of 5.7%, considerably higher than that of its peers, reflects its
high yielding loan mix and competitive funding costs deriving from
Interbank's growing and large core retail deposit base. In
addition, declining credit costs, which accounted for 38% of
pre-provision income in the first quarter 2019, down from 40.9% in
calendar year 2017, helped profitability trends.

Interbank's rapid loan growth in 2018 led to non-performing loans
(NPLs) declining to 2.6% of gross loans in 1Q2019 from 2.9% at
year-end 2017. However, growth rates were higher in corporate and
credit card loans, and resulted in a loan book that is now more
balanced. In particular, credit card loans, which expanded at a
relevant 24% rate in 2018, benefited from increasing digital sales
and an active cross selling effort among Interbank's customers as
well as those of its sister companies. Interbank reduced the
relative exposure to small and medium size companies (SMEs) in its
total loan book, a segment that has accounted for the majority of
Peruvian banks' delinquencies in recent years, and it has lowered
the share of dollar loans, both positive credit developments.
Moreover, the bank has built a large amount of loan loss reserves,
which equaled 177% of NPLs in March 2019 - well above the 167%
posted in year-end 2017, while almost 53% of total loans are now
collateralized.

While above average loan growth in risky asset classes will likely
lead to higher credit costs as loans season, Moody's expects
Interbank's risk management to limit asset concentration and keep
net charge offs at low levels, below 2.3% reported as of March
2019, on annualized basis.

Nonetheless, even with higher credit costs, Moody's expects
Interbank's profitability to remain healthy, a reflection of the
improvement in Interbank's core operational efficiency, as it
deploys its digital strategy to acquire and serve new clients.
Increasing digital sales and improving processes efficiency will
help Interbank further improve its already low 40% cost-to-income
ratio, although Interbank has one of the largest branch networks in
Peru.

Interbank's stable, but below average, capital position relative to
peers reflects management's capital targets, and incorporates the
consistent 45% dividend payout to its holding company, Intercorp
Financial Services Ltd. (unrated). Moody's capitalization ratio,
measured as tangible common equity to risk weighted assets, at
10.2% as of March 2019, is slightly lower than the 10.4% posted as
of March 2018, despite the fast lending growth in 2018, and attests
to Interbank's strong earnings generation capacity.

Interbank also benefits from a large base of granular, low-cost
deposits and relatively modest reliance on market funds. Nearly
half of the bank's deposits are sourced from individuals (46%),
while corporations account for another 37%, limiting the bank's
exposure to less reliable and more cost-sensitive institutional
deposits. In addition, just 41% of deposits were dollar denominated
as of March 2019, below the system's average of 44%, leaving the
bank less dependent on Central Bank currency swaps. Market funds
equal 15.2% of tangible banking assets, while liquid assets rose to
30.5% of tangible banking assets as of March 2019.

Interbank's Baa1 deposit and senior unsecured debt ratings benefit
from one notch of uplift from its adjusted BCA of baa2 and reflects
its assumption of a moderate probability of government support in
case of stress, which derives from its systemic importance and
sizable deposits market share.

WHAT COULD CHANGE THE RATING UP/DOWN

Interbank's ratings could face upward pressure if asset risk and
capitalization are significantly strengthened, while its
profitability remains elevated. Conversely, Interbank's ratings
could face downward pressures if the bank experiences a material
deterioration of its asset quality or if its capitalization weakens
significantly.




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P U E R T O   R I C O
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KONA GRILL: Seeks to Hire Epiq as Administrative Advisor
--------------------------------------------------------
Kona Grill, Inc., and its debtor-affiliates seek authority from the
U.S. Bankruptcy Court for the District of Delaware to employ Epiq
Corporate Restructuring, LLC, as administrative advisor to the
Debtors.

Kona Grill requires Epiq to:

   (a) assist with, among other things, solicitation, balloting,
       tabulation, and calculation of votes, as well as preparing
       any appropriate reports, as required in furtherance of
       confirmation of plans of reorganization;

   (b) generate an official ballot certification and testify, if
       necessary, in support of the ballot tabulation results;

   (c) provide assistance with preparation of the Debtors'
       schedules of assets and liabilities and statements of
       financial affairs; and

   (f) provide such other claims processing, noticing,
       solicitation, balloting, distributions, and other
       administrative services described in the Services
       Agreement, but not included in the Section 156(c)
       Application, as may be requested from time to time by the
       Debtors, the Court, or the clerk of the Court.

Epiq will be paid based upon its normal and usual hourly billing
rates.  Epiq will be paid a retainer in the amount of $25,000. Epiq
will also be reimbursed for reasonable out-of-pocket expenses
incurred.

Kathryn Tran, director of Epiq Corporate Restructuring, LLC,
assured the Court that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code and does
not represent any interest adverse to the Debtors and their
estates.

Epiq can be reached at:

     Kathryn Tran
     EPIQ CORPORATE RESTRUCTURING, LLC
     777 Third Ave., 12th Floor
     New York, NY 10017
     Tel: (646)282-2595

                        About Kona Grill

Kona Grill, Inc. -- https://www.konagrill.com/ -- owns and operates
27 casual dining restaurants in 18 states, as well as Puerto Rico,
serving contemporary American favorites, sushi, and alcoholic
beverages throughout the United States and Puerto Rico.

Kona Grill, Inc., and its subsidiaries sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. Del. Lead Case No.
19-10953) on April 30, 2019.  As of Dec. 31, 2018, the Debtors'
total assets is $53,613,000 and total liabilities of $74,049,000.
The petition was signed by Christopher J. Wells, the CRO.

The Debtors tapped Pachulski Stang Ziehl & Jones LLP as counsel;
Piper Jaffray as investment banker; Alvarez & Marsal North America,
LLC as restructuring advisor and Epiq Corporate Restructuring, LLC,
as claims and noticing agent.




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

VENEZUELA: Maduro Says Border With Colombia to Reopen
-----------------------------------------------------
France24 reports that Venezuela's President Nicolas Maduro ordered
the reopening of the country's border with Colombia in western
Tachira state, near where international aid refused by Caracas has
amassed.

The economically-devastated South American nation is suffering from
shortages of food, medicine and other essentials amid a power
struggle between Maduro and opposition leader Juan Guaido, who has
been recognized as interim president by more than 50 countries
including the United States, according to France24.

Announcing the reopening of the frontier on Twitter, Maduro said:
"We are a people of peace that strongly defends our independence
and self-determination," the report relays.

The full text of his tweet reads: "Exercising our sovereignty, I
have ordered the opening of the border crossings with Colombia in
Táchira State, starting this Saturday #8Jun.  We are a people of
peace that strongly defends our independence and
self-determination," the report notes.

The leader, however, did not say whether crucial border bridges,
closed since August 2015 after two Venezuelan soldiers were wounded
by suspected smugglers, would be unblocked, the report relays.

In February, Maduro ordered the total closure of land frontiers
with Brazil and Colombia, as well as sea and air links with the
Netherlands Antilles in the Caribbean, the report says.

                           'Economic War'

Guaido wanted to bring food and medicine into the country, but the
Maduro-backed army blocked the border bridges and prevented the
entry of cargo, the report discloses.

Maduro said Venezuela is the victim of an "economic war" waged by
the United States and believes the aid was a smoke screen to
prepare a "foreign invasion," the report notes.

The Venezuelan government in May reopened its land border with
Brazil and the sea route with Aruba, but not with other islands
such as Bonaire and Curacao, the report relays.

Relations between Venezuela and Colombia, who share a land border
stretching 2,220 kilometres, have been broken since February 23
after Colombian President Ivan Duque announced his support for
Guaido, the report adds.

Many Venezuelans cross the frontier illegally every day to get
supplies because of the serious shortage of basic necessities, te
report says.

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'.




===============
X X X X X X X X
===============

[*] BOND PRICING: For the Week June 3 to June 7, 2019
-----------------------------------------------------
  Issuer Name              Cpn     Price   Maturity  Country  Curr
  -----------              ---     -----   --------  -------   ---

YPF SA                    16.5    67.3     5/9/2022    AR     ARS
Banco Macro SA            17.5    65.2     5/8/2022    AR     ARS
KrisEnergy Ltd             4.0    40.4     6/9/2022    SG     SGD
Odebrecht Finance Ltd      6.0    16.4     4/5/2023    KY     USD
Cia Latinoamericana de     9.5    73.9    7/20/2023    AR     USD
MIE Holdings Corp          7.5    56.2    4/25/2019    HK     USD
China Huiyuan Juice Gr     6.5    46.6    8/16/2020    CN     USD
Odebrecht Finance Ltd      7.0    17.0    4/21/2020    KY     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
Noble Holding Internat     6.2    62.2     8/1/2040    KY     USD
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
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 * * *