---

       T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Wednesday, August 7, 2019, Vol. 20, No. 157

                           Headlines



A R G E N T I N A

ALBANESI SA: Fitch Corrects August 1, 2019 Press Release
ARGENTINA: S&P Affirms 'B' Sovereign Credit Rating, Outlook Stable
ARGENTINA: Will Develop Satellite Technology w/ $60MM IDB Support
CUOTAS CENCOSUD IX: Moody's Rates ARS343,598 Certificates 'C(sf)'
PAMPA ENERGIA: Fitch Affirms 'B' LT IDR, Outlook Negative



B R A Z I L

COMPANHIA SIDERURGICA: S&P Ups Ratings to 'B', Outlook Stable


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Chief Opposes Push to Raise Price of Milk
DOMINICAN REPUBLIC: Economic Activity Posts Sluggish Growth in 1H


M E X I C O

MEXICO: Number of Poor People Falls by 1 Million


P U E R T O   R I C O

INVERSIONES CARIBE: Sept. 11 Hearing on Disclosure Statement
LUBY'S INC: Appoints John Morlock as Director
LUBY'S INC: Gasper Mir Quits as Board Chairman
PUERTO RICO: Political Crisis Shifts to the Courts


V E N E Z U E L A

VENEZUELA: Maduro Asks Locals to Brace for Possible Blockade by US

                           - - - - -


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

ALBANESI SA: Fitch Corrects August 1, 2019 Press Release
--------------------------------------------------------
Fitch Ratings replaced a ratings release published on August 1,
2019 to correct the name of the obligor for the bonds.

Fitch Ratings has affirmed Albanesi S.A.'s Long-Term Foreign
Currency and Local Currency Issuer Default Ratings at 'B-'. Fitch
has also affirmed at 'B-' the senior unsecured notes co-issued by
Central Termica Roca and Generacion Mediterranea S.A., which are
are guaranteed by Albanesi S.A. Each of the issuers and Albanesi
S.A. are jointly and severally liable for any payment obligations
under the notes.

Fitch has removed the ratings from Rating Watch Negative and
assigned a Negative Outlook. The Negative Outlook reflects the
company's tight FFO debt service coverage ratio over in the next 12
to 18 months, assuming there are no payment delays over 51 days
from Compania Administradora del Mercado Mayorista Electrico, and
the general uncertainty of its ability to refinance upcoming
financial debt maturities of USD106 million between 2019 and 2020.
As of June 30, 2019, the company also had USD49.6 million of
commercial debt coming due between second half of 2019 and 2020,
which the company either has partially paid, will prepay shortly or
is negotiating with suppliers.

Key Rating Drivers

Expansion Projects Postponed Indefinitely: Fitch's rating case no
longer assumes Albanesi will add 275MW of combined cycle capacity
at two of its plants, Maranzana and Ezeiza, by 2020 after the
company postponed a USD300 million bond issuance to finance the
projects. CAMMESA had awarded Albanesi power purchase agreements
(PPAs) for the projects under Resolution 287/2017, which would have
added about USD86 million of annual EBITDA. The company remains
responsible for USD49.5 million in payments to turbine suppliers
and a penalty of USD36.8 million, payable in 48 monthly
installments beginning in 2021, to CAMMESA for failure to complete
the expansions as scheduled.

Tight Debt Service Coverage: Albanesi's cash flow is relatively
stable and predictable provided that CAMMESA continues to pay
within its current time of 51 days. As of first-quarter 2019, 100%
of the company's revenue was denominated in U.S. dollars and 80% of
EBITDA was derived from long-term take-or-pay contracts under
Resolutions 220/2007 and 21/2016. Fitch estimates Albanesi's 2019
leverage, including commercial debt, at 4.0x, which is expected to
decline to 3.1x over the rating horizon as the company pays off
maturing obligations with cash flow. In 2019 and 2020, FFO interest
coverage will be tight at 2.3x and 2.1x, respectively, due to new
debt added and high financing costs.

Uncertain Refinancing Ability: Fitch believes that Albanesi has
demonstrated an ability to refinance upcoming debt with the newly
issued USD80 million amortizing note due 2023. The note will be
secured by eight turbines and their respective five PPAs,
representing USD105 million of revenue. The proceeds, in
conjunction with ongoing cash flow, will help to cover USD32
million in financial debt due in 2019 and USD74 million in 2020,
USD49.5 million and USD22 million of commercial debt in these
respective years and deferred value-add taxes. Despite the note
issuance, Fitch believes Albanesi remains vulnerable to refinancing
risk given its tight liquidity profile in 2020 and 2021. Fitch
expects the company to renegotiate and/or extend certain
obligations in 2019 and 2020 to accumulate more cash, which was
USD3 million in 1Q19, improving its overall liquidity profile.

Energia Base Compensation Reduced: Payments to legacy generation
units without a PPA in Argentina are determined by a regulatory
framework called Energia Base. Resolution 1/2019 in February 2019
reduced capacity payments made to generation companies under
Energia Base in order to lower deficits caused by peso depreciation
in 2018. Between the end of 2020 and 2022, Albanesi has 300MW of
nominal capacity with PPAs under Resolution 220/2007 set to expire.
Fitch expects this capacity to become remunerated under Energia
Base, which will be a driving factor in annual EBITDA declining by
approximately USD30 million over the rating horizon.

Heightened Counterparty Exposure: Albanesi depends on payments from
CAMMESA, which acts as an agent for an association representing
electricity generators, transmission, distribution and large
consumers or the wholesale market participants (Mercado Mayorista
Electrico). Albanesi is exposed to potential delays in payment from
CAMMESA and also to risks in fuel supply, although the latter is
mitigated by Albanesi's affiliated gas trading business. CAMMESA
has been able to comply with its commercial agreements to provide
payments within 51 days, even after the recent Argentinian peso
depreciation, but Fitch estimates that due to the company's
financial and commercial obligations, it cannot afford prolonged
delays in payments.

Uncertain Regulatory Environment: Fitch believes Argentina's
current economic and political environment increases the
uncertainty that the Macri administration will be able to
effectively implement the required electricity regulatory tariffs
adjustments in order for the system to be self-sustainable. The
company operates in a highly strategic sector where the government
has a role as both the price/tariff regulator and also controls
subsidies for industry players. Fitch assumes the Macri
administration continues to be committed to and prioritizes
developing a long-term sustainable regulatory environment, moving
toward a more unregulated market and reducing the deficit.

Legal Uncertainty Surrounding Shareholder: In August 2018
Albanesi's former chairman and principal shareholder Armando
Roberto Loson was arrested as part of a federal graft
investigation. Mr. Loson, Albanesi's chairman prior to the arrest
and head of the family that is the controlling shareholder, was
detained together with 10 business executives and former public
employees as part of an alleged graft case. Original allegations
included collusion and bribery; however, the charges have been
lowered to illegal campaign contributions. His son, Armando Loson
Jr., now serves as Chairman of the Board. Fitch believes
uncertainty remains regarding how the arrest of Mr. Loson will
affect the company.

Derivation Summary

Albanesi's (B-/Negative) expected 2019 gross leverage, measured as
total debt/EBITDA, is 4.0x, weaker than AES Argentina's
(B/Negative) 3.3x, Pampa Energia's (B/Negative) 2.6x and Capex
S.A.'s (B/Negative) 1.2x for 2020 but lower than Genneia S.A.'s
(B/Negative) 4.8x and MSU Energy S.A.'s (B-/Stable) 7.8x. Similar
to the one Albanesi is attempting, MSU Energy is currently
executing a combined cycle expansion due first-half 2020 under the
same resolutions. Thus its leverage is heightened to finance its
expansion. Both MSU Energy's and Albanesi's working capital levels
are vulnerable to delays in payments from CAMMESA.

Key Assumptions

  -- Combined cycle expansions at Maranzana and Ezeiza plants are
postponed indefinitely;

  -- Commercial financing of USD110.6 million owed to vendors paid
over the rating horizon;

  -- Refinance the USD106 million of financial debt due to mature
in 2019 and 2020;

  -- New secured note of USD80 million is issued in August 2019;

  -- CAMMESA levies a fine of USD36.8 million in 2020 payable over
48 months;

  -- Resolution 220/2007 PPAs expiring in 2020-2022 will move to
Energia Base upon termination;

  -- Outstanding debt and cash flows are adjusted for expected
currency exchange rate fluctuations;

  -- Construction capex payments to suppliers pursuant to
Resolution 287/17 are delayed indefinitely;

  -- Average FX rate of 44.40 for 2019 and 57.40 for 2020;

  -- Payments from CAMMESA are delayed 51 days.

RATING SENSITIVITIES

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

  -- Further regulatory developments leading to a more independent
market less reliant on support from the Argentine government that
could positively affect the company's collections/cash flow;

  -- Ability to refinance near-term obligations due in 2019 and
2020 or the possible sale of Generacion Centro coupled with
sustained FFO to debt service coverage greater than or equal to
2.0x.

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

  -- Inability to refinance short-term debt coming due by
second-half 2019 and 2020 and/or result in default;

  -- A reversal of government policies that result in a significant
increase in subsidies and/or a delay in payments for electricity
sales;

  -- A substantial worsening of near-term operating performance
relative to Fitch's expectations;

  -- A significant deterioration of credit metrics and/or
significant payment delays from CAMMESA;

  -- A sustained debt/EBITDA ratio of 4.0x or higher or FFO to debt
service coverage below 1.5x.

Liquidity and Debt Structure

Tight Liquidity Despite Note Issuance: Fitch expects Albanesi to
issue a 2023 USD80 million amortizing note in August 2019. The note
will be secured by eight turbines and their respective five PPAs,
representing USD105 million of revenue. The proceeds, together with
ongoing cash flow, will help cover USD32 million in financial debt
due in 2019 and USD74 million in 2020, USD49.5 million and USD22.4
million of commercial debt in these respective years and deferred
VAT taxes from prior expansion projects. Fitch estimates the new
notes will add USD11 million to the company's annual interest
costs, resulting in tight FFO interest coverage of 2.3x in 2019 and
2.1x in 2020.

Despite its relatively strong cash flow, Fitch expects the company
will have tighter liquidity in 2021 as the new note begins to
amortize and penalty payments to CAMMESA, of USD36 million payable
over four years, begin. The company believes it will have some
working capital flexibility in payment timing to its affiliated gas
supplier, RG Albanesi. The covenants of the USD336 million bond due
2023 limit the company's ability to pay dividends to shareholders.
As of March 31, 2019, the company had cash of 123.6 million
Argentine Pesos, or USD3.0 million.

ARGENTINA: S&P Affirms 'B' Sovereign Credit Rating, Outlook Stable
------------------------------------------------------------------
On Aug. 1, 2019, S&P Global Ratings affirmed its long-term foreign
and local currency ratings on Argentina at 'B' as well as its
short-term foreign and local currency ratings of 'B'. The outlook
on the long-term ratings remains stable.

At the same time, S&P affirmed its national scale ratings of
'raAA-' and its transfer and convertibility assessment at 'B+'.

Outlook

S&P said, "The stable outlook on our 'B' rating reflects our
assumption of broad policy continuity through the national
elections later this year, with a new administration set to take
office in December 2019. Despite open and fluid electoral dynamics,
with primary elections scheduled Aug. 11, we assume the current
Macri Administration and next government will maintain the broad
contours of current fiscal and monetary policies aimed at
stabilizing macro-imbalances over the coming 18 months." Recent
political alliances suggest some pragmatism. Presidential
candidates are seeking to widen their appeal beyond their core base
of support. Outstanding risks to this scenario are well captured
within the existing relatively low 'B' rating on Argentina.

Gradual progress staunching the deterioration in the sovereign's
financial profile and debt burden as well as lowering inflation are
key to restoring investor confidence and turning around the
economy. That in turn would facilitate lower interest rates and
local and external market access for high government financing
needs. The sharp improvement in the current account derived from
strong agricultural exports and the adjustment of the exchange
rate, albeit also the result of recession, has alleviated some
balance of payments pressure, assuming firm policy signaling
forestalls capital outflows.

S&P could lower the rating over the next 12 months if unexpected
negative political developments or uneven implementation of the
government's economic austerity program further damage investor
confidence or impede the government's access to local market
financing this year and next, and potentially international capital
markets in 2020. Similarly, perceptions that the sovereign's firm
commitment to a credible economic adjustment program might
waver--be it before or after the national elections in 2019--could
create similar unfavorable market dynamics. In either case, the
resulting deterioration in the sovereign's financial profile, with
additional pressure on external indicators, despite sharp
adjustment in the current account deficit this year, stemming from
more pronounced capital outflows and limited access to liquidity to
roll over maturing debt, could lead to a lower rating.

S&P could raise the rating over the next two years if successful
policy implementation leads to a faster-than-expected fall in
inflation, greater currency stability, and a more pronounced
economic recovery. That is key, along with persistent
implementation of challenging fiscal measures to reverse the recent
deterioration in Argentina's fiscal debt profile, and could support
a higher rating. So would sounder longer-term GDP growth
prospects.

Rationale

Argentina's economic growth trajectory, inflation dynamics, and
debt profile worsened in 2018 following setbacks in implementing
its challenging economic adjustment program. Various pressures have
continued in 2019 given ongoing structural vulnerabilities in its
credit profile complicated by policy uncertainty during the current
election cycle. In its second year of a contraction in real GDP,
Argentina continued to experience bouts of exchange-rate
instability and worsening inflation dynamics, despite the more
stable performance in these two variables in recent months. S&P
expects that GDP will contract another 1.6% this year before
recovering modestly in 2020. Inflation seems to have peaked but is
likely to average 50% this year, moderating some to a still high
30% in 2020. The strong depreciation of the Argentine peso against
the dollar in 2018 contributed to an increase in the government's
debt burden (as most of the sovereign's debt is denominated in
foreign currency). Despite additional nominal depreciation in 2019,
pushing inflation even higher, a projected real appreciation of the
peso is a key factor in a fall in net general government debt to
70% of GDP this year from 76% in 2018, still comparing unfavorably
with 50% in 2017.

The ratings on Argentina reflect its weak fiscal and external
profiles, limited monetary flexibility, and high debt burden, which
is predominantly denominated in foreign currency. More than 75% of
central government debt is in foreign currency, though about
one-third of it is held by creditors in the public sector,
mitigating rollover risk somewhat.

Argentina has a track record of high inflation coupled with limited
monetary flexibility given the absence of a credible local currency
as a store of value; this underpins its small domestic capital
markets and financing vulnerabilities. Such shortcomings have
contributed to a weak external position as Argentina continues to
rely heavily on external funding to finance persistent and high
fiscal deficits. The ratings also reflect a poor track record of
growth and our assessment of weak institutional and governance
effectiveness.

Institutional and economic profile: Economy remains under pressure
as national elections approach later in 2019

-- A history of economic instability and sharp changes in economic
policies underpin low credibility and predictability of Argentina's
governing institutions.

-- That said, the rating assumes broad policy continuity following
national elections in late 2019 supported by a shifting campaign
strategy of all the leading candidates.

-- Hence, while S&P expects the economy to contract again in 2019,
it expects progress in reducing imbalances and subsequent lower
interest rates and relative exchange rate stability, to support
slow recovery in 2020-2021.

One of the weaknesses in Argentina's institutional assessment is
its history of major changes in economic policy following shifts in
political leadership. Argentina's democracy has been characterized
by a history of political polarization that limits the government's
ability to implement its economic agenda. This polarization does
not stem from an ethnic/religious/racial divide, as in some
similarly rated sovereigns, but rather a socioeconomic and
ideological divide. In addition, even within longstanding
traditional parties, there are diverse views on economic policy.
This generates more volatile policy outcomes, especially
considering the weak independence of apolitical institutions, and
reduces checks and balances. This is in contrast to sovereigns with
stronger institutional assessments. While there has been
improvement in checks and balances between public institutions,
enforcement of contracts, and respect for the rule of law, under
the current administration, these political pillars remain weak and
with an incipient track record.

The current economic crisis contributes to the very polarized
political landscape ahead of this year's national elections. At the
same time, it led the main presidential contenders across the
political spectrum to adjust their campaign strategies in the hope
of appealing to the "middle voter." Former President Cristina
Fernandez de Kirchner is running as vice presidential candidate to
Alberto Fernandez, who has in the past advocated more pragmatic
policies than his running mate. President Mauricio Macri selected a
prominent member of the Peronist Party, Miguel Angel Pichetto, to
be his running mate in order to reach beyond his own political
party. Irrespective of who wins the presidency, S&P doesn't expect
the next government to have a solid majority in Congress. Hence, it
will likely need to build alliances for passage of legislation--be
it across party lines or with a heterogeneous Peronist Party.

At this early stage of the electoral process, the political outlook
is very fluid. Our base case for economic policies considers both
policy signaling from leading political contenders and their
initiatives once elected or in office. However, negative signaling
about policy prospects could generate pressures on the market-–be
it on the currency, interest rates, or rollover of local debt.
That, in turn, could weigh on the sovereign rating, given high
financing needs and structural vulnerabilities in its debt profile
and the small capacity of the local financial market.

Whoever wins the election will contend with a complex and
challenging economic scenario and the need to continue to work with
the IMF. Argentina's record-size, front-loaded $57 billion 36-month
program disburses through 2021. It is based on very tight fiscal
and monetary policy but also permits limited increases in social
spending (such as child allowances and pensions) given the economic
hit to the most vulnerable segments of the population. It allows
the government to use IMF money for both budgetary support and
balance of payments purposes under the exceptional access criteria
of the fund. The program aims to provide sufficient fiscal and
external funding until after the October 2019 national elections
but assumes sufficient local financing rollover of local securities
this year and next, as well as a potential tap of global markets
beginning 2020.

The long-term viability of the economic adjustment program depends
on firm commitment to reducing the fiscal deficit by running a
primary (noninterest) surplus, as well as successful monetary and
exchange-rate policy execution to reestablish the credibility of
the central bank, reduce inflation, and secure ongoing market
access. The rating and outlook assume the next administration will
largely continue with market-friendly economic policies, setting
the stage for economic recovery in late 2019 or early 2020.

S&P said, "Our economic growth forecasts for 2019 and 2020 reflect
ongoing economic challenges, especially the country's poor
long-term growth performance. Argentina's long-term growth
performance is worse than that of other countries at a similar
level of wealth and development. We expect economic contraction of
1.6% in 2019, following a 2.5% decline in 2018, and a recovery of
around 2.2% in 2020. We estimate GDP per capita will be around
$10,700 in 2019, down from nearly $14,500 in 2017 (mainly because
of depreciation of the currency). Argentina's poor record of low,
volatile growth weighs on our economic assessment."

S&P's forecast for GDP growth in 2020 is based on our assumption
that the government largely succeeds with its economic adjustment
policies, leading to better financial conditions and higher
investor confidence. Beyond 2020, long-term trend growth is likely
to be around 2.5%. A competitive exchange rate, continued growth in
agricultural exports, higher energy production, and a recovery in
domestic demand would sustain long-term growth. The prospects for
further successful development of Argentina's nonconventional
energy space is promising for growth and balance-of-payments
dynamics over time. In addition, such development seems to be a
priority across the political spectrum.

Flexibility and performance profile: Significant fiscal and
monetary policy challenges are complicated by external
vulnerability

-- A high fiscal debt burden reflects dependence on foreign
currency or external funding--be it from official or commercial
creditors.

-- Longstanding lack of confidence in the peso as a store of value
has undermined monetary policy flexibility and price stability.

-- High external debt and large gross external financing metrics
have improved at the margin amid strong adjustment in the current
account deficit, assuming contained capital outflows and solid
export growth.

S&P said, "Argentina's large external debt and ongoing dependence
on external and foreign currency funding is a pronounced
vulnerability in its credit profile. Narrow net external debt, of
about 190% of current account receipts in 2019, is down from over
200% in 2018, and we expect it to average about 180% over
2020-2021. We project gross external financing needs to usable
reserves and current account receipts to average about 120% in the
next several years. These forecasts assume limited capital outflows
amid solid macroeconomic policy execution as well as solid export
performance. Depreciation of the peso and falling domestic demand
that has curtailed imports has lowered the current account deficit
sharply in 2019 toward 1.5% of GDP in 2019 from nearly 5% last
year. Afterward, we expect the current account deficit to widen
somewhat as the economy recovers, but we also export solid export
performance aided in part by energy exports. We expect net inflows
of foreign direct investment to be around 1.7% of GDP on average
over the next three years, a bit above the average level during
2012-2017, given dynamism in Argentina's nonconventional energy
sector."

Argentina's poor track record in containing inflation, which
averaged 26% during the last 10 years, is a significant credit
weakness. Failure to establish a consistent monetary and
exchange-rate policy framework with an independent central bank has
undermined the peso as a meaningful store of value for local
residents. Similarly, it limits the breadth and depth of local
capital markets.

Given its inability to anchor inflation and inflation expectations,
last year the central bank changed its policy strategy from an
inflation-targeting regime to one that targets the monetary base.
To bring down inflation, it's engineering a substantial decline in
real base money by maintaining extremely high policy interest
rates. The central bank eliminated the stock of Lebacs (debt it had
issued largely to sterilize increases in money supply) and solely
issues Leliqs (new types of debt for monetary policy held only by
financial institutions) to gain better control over domestic
liquidity.

The Macri Administration liberalized the foreign exchange regime in
2015. However, the shift to a managed float has undergone bouts of
market stress amid policy uncertainty. Again, inconsistencies led
to adjustments in the regime in 2018 and 2019. Since April, the
central bank aims to maintain the peso within a "reference band";
it includes some scope for unsterilized foreign-exchange
intervention to soften peso volatility during disorderly market
conditions--not just at the bounds of the reference zone but also
within it--to help anchor inflation expectations.

Notwithstanding these monetary policy and exchange-rate-regime
adjustments, peso depreciation and volatility boosted inflation
significantly in 2018 and 2019, up from a still high 25% average in
2017. While monthly inflation has moderated since April, inflation
dynamics remain challenging, and S&P expects inflation to average
50% in 2019. In addition, S&P expects inflation to remain very high
over the forecast given backward-looking wage negotiations and
longstanding credibility challenges.

A high debt burden and fiscal rigidities contribute to Argentina's
weak fiscal position. The administration has committed to an
ambitious adjustment, particularly as Argentina has not run a
primary (noninterest) surplus since 2009.

In 2018 and so far in 2019, there has been a strong improvement in
the general government's primary balance, which includes the
provinces. S&P expects the government to nearly meet its primary
targets this year and next--with a general government primary
deficit of 0.2% and surplus of 0.9% of GDP, respectively. This
reflects a strong adjustment in spending in particular amid revenue
underperformance this year. On the spending side, savings stem from
reduced subsides for energy and transportation, lower capital
spending, and from the lagged impact of high inflation on wages and
pensions, which will reverse somewhat in 2020. S&P expects the
overall general government deficit to average closer to 3% of GDP
given the high interest burden. However, S&P estimates the change
in net general government debt to average a much higher 12% of GDP
in 2019-2021. This largely reflects adjustments coming from
exposure to foreign currency and indexation to inflation, compared
with the lower general government deficits.

S&P expects net general government debt to decline to 70% of GDP in
2019, from 76% in 2018, and average 60% of GDP in 2020-2021. The
improvement in the debt ratio largely reflects the impact of
inflation and currency volatility. A high share of foreign currency
debt (about 75%) renders the debt burden vulnerable to sharp swings
in the currency. The interest burden has also worsened given
currency depreciation, along with high policy rates and a slow
recovery in the government's revenue base after a hit in 2018. S&P
expects interest expenses to remain above 10% of general government
revenues in 2019-2021.

While the sovereign faces high financing needs, official external
funding available for 2019 should be sufficient to cover these
needs, provided that the government implements the fiscal and other
adjustments in the IMF program and maintains domestic confidence.
Official debt accounts for about 20% of the government's total
debt. About one-third of central government debt is held by
creditors in the public sector (the largest share is with the
central bank), which mitigates domestic rollover risk somewhat. S&P
excludes sovereign debt held by the pension system (ANSES), which
accounts for about 9% of central government debt.

S&P said, "We view contingent liabilities to Argentina's debt
assessment as limited, including those posed by the banking system.
We classify the banking sector of Argentina in group '8', according
to our Banking Industry Country Risk Assessment (BICRA), with '1'
being the lowest risk category and '10' the highest. Argentina has
a small financial system, with domestic credit to the private
sector around 12% of GDP in 2019 (among the lowest in Latin
America). We estimate that the gross assets of the financial system
will be 38% of GDP in 2019--low relative to peers."

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  Ratings List

  Ratings Affirmed
  Argentina

  Sovereign Credit Rating            B/Stable/B
  Transfer & Convertibility Assessment B+
  Senior Unsecured                   B


ARGENTINA: Will Develop Satellite Technology w/ $60MM IDB Support
-----------------------------------------------------------------
Argentina will develop satellite technology to increase the
effectiveness of public policies for managing disaster risk and
enhancing productivity with a $60 million loan from the
Inter-American Development Bank (IDB).

The project will use lessons learned to build and launch the SAOCOM
1A satellite for the development and commissioning of the SAOCOM 1B
satellite, which will be launched in March 2020.

SAOCOM satellites are for terrestrial observation and to collect
data use a Synthetic Aperture Radar (SAR) antenna that detect soil
moisture and provide information in any weather condition or time
of the day. The satellites will also have an image reception and
processing platform with SAR technology, as well as the software
and hardware updates required to download data generated.

The SAOCOM 1A and 1B will be part of a unique constellation of
satellites system in the world, which will include four other
satellites of the Italian Space Agency. This system will bring
benefits for agriculture, territorial planning, natural resource
management and climate change mitigation and adaptation, both in
Argentina and in other countries in the region. It will also
contribute to the advancement of scientific research and
decision-making for productive and social purposes, with emphasis
on promoting entrepreneurship in technological services with high
added value.

The project is expected to increase productivity -- volume
harvested per area sown -- of the most important crops in the
country (corn, wheat, sunflower and soybeans). Aggregate returns
are also expected in the medium term with the use of satellite
information for productive purposes or for the prevention or
management of climatic risks.

The IDB loan of $60 million has a term of 25 years, with a grace
period of five and a half years and interest rate based on LIBOR.
The local counterpart will be $31 million. The project will be in
charge of the National Commission for Space Activities (CONAE), a
decentralized agency that operates under the Ministry of Education,
Culture, Science and Technology.

                       About Argentina

Argentina is a country located mostly in the southern half of South
America.  It's capital is Buenos Aires.  Mauricio Macri is the
incumbent president of Argentina.

Argentina has the third largest economy in Latin America.  The
country's economy is an upper middle-income economy for fiscal year
2019 according to the World Bank.  Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and--in the recent decades--increasing poverty.

As reported in the Troubled Company Reporter-Latin America on
July 16, 2019, Moody's Investors Service changed the outlook for
the Government of Argentina to negative from stable. Concurrently,
Moody's has affirmed the B2 foreign-currency and local-currency
long-term issuer and senior unsecured ratings. The senior unsecured
ratings for shelf registrations were also affirmed at (P)B2.  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.

CUOTAS CENCOSUD IX: Moody's Rates ARS343,598 Certificates 'C(sf)'
-----------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo (Moody's)
has rated Fideicomiso Financiero Cuotas Cencosud Serie IX. This
transaction will be issued by TMF Trust Company (Argentina) S.A.
acting solely in its capacity as issuer and trustee.

This credit rating is subject to the fulfillment of contingencies
that are highly likely to be completed, such as finalization of
documents and issuance of the securities. This credit rating is
based on certain information that may change prior to the
fulfillment of such contingencies, including market conditions,
financial projections, transaction structure, terms and conditions
of the issuance, characteristics of the underlying assets or
receivables, allocation of cash flows and of losses, performance
triggers, transaction counterparties and other information included
in the transaction documentation. Any pertinent change in such
information or additional information could result in a change of
this credit rating.

The full rating action for the "Fideicomiso Financiero Cuotas
Cencosud Serie IX" deal is as follows:

  - ARS412,174,197 in Class A Floating Rate Debt Securities (VDFA),
rated Aaa.ar (sf) (Argentine National Scale) and Ba3 (sf) (Global
Scale)

  - ARS4,929,658 in Class B Floating Rate Debt Securities (VDFB),
rated Caa1.ar (sf) (Argentine National Scale) and Caa3 (sf) (Global
Scale)

  - ARS24,703,065 in Class C Floating Rate Debt Securities (VDFC),
rated Ca.ar (sf) (Argentine National Scale) and Ca (sf) (Global
Scale)

  - ARS343,598 in Certificates (CP), rated C.ar (sf) (Argentine
National Scale) and C (sf) (Global Scale)

RATINGS RATIONALE

The rated securities are payable from the cash flow derived from
the trust assets, which includes a static and amortizing pool of
approximately 137,344 eligible purchases in credit card
installments denominated in Argentine pesos and originated by
Cencosud S.A., the local subsidiary of Cencosud S.A. (Baa3,
Negative). Cencosud is among Latin America's largest retailers,
with presence in Chile, Argentina, Peru, Colombia and Brazil. Only
installments payable after September 1st, 2019 will be assigned to
the trust.

The assigned installments pertain to credit cards issued by
Cencosud Argentina. Cencosud credit cardholders can make purchases
in affiliated stores and split the payments in several monthly
installments bearing no interest. The monthly installments are
detailed in the cardholder's monthly credit card statements. Not
all installments due under a given credit card will be assigned to
the trust; a given credit card account may also have other
installments that do not serve as collateral for this transaction.

In this transaction, the minimum payment level of cardholders'
credit card monthly statement will always include 100% of the
installments assigned to the trust and due in that month.
Therefore, the trust will receive the expected cash flows without
any delays as long as the cardholder is considered a performing
obligor.

A reserve fund covering two times the next interest accrual of the
VDFA and VDFB will be funded using collections received on the
pool.

Moody's based the analysis on the following factors: (i) the strong
credit profile of Cencosud and Cencosud Argentina and their
position as key players in the retail sector of Argentina and the
region; (ii) the relatively short expected life of the notes; and
(iii) the strong performance of Cencosud's portfolio.

TRANSACTION STRUCTURE

The VDFA will bear a floating interest rate (BADLAR plus 100 bps).
The VDFA's interest rate will never be higher than 50.0% or lower
than 42.0%. The VDFB will bear a floating interest rate (BADLAR
plus 200 bps). The VDFB's interest rate will never be higher than
51.0% or lower than 43.0%. The VDFC will bear a floating interest
rate (BADLAR plus 300 bps). The VDFC's interest rate will never be
higher than 52.0% or lower than 44.0%.

Overall credit enhancement is comprised of: (i) subordination; ii)
overcollateralization and iii) a reserve fund. The transaction has
initial subordination levels of 24.8% for the VDFA, 23.9% for the
VDFB and 19.3% for the VDFC, calculated over the pool's
undiscounted principal balance.

Finally, the transaction has an estimated 40.4% of negative annual
excess spread, before considering losses, taxes or prepayments and
calculated at the interest rate cap for the notes. As mentioned,
the assigned monthly installments do not bear interest. Available
credit enhancement and a relatively short estimated term of 9
months for Class A largely mitigate this risk.

Moody's analyzed the historical performance data of previous
transactions and the dynamic credit card portfolio of Cencosud
Argentina, ranging from May 2016 to May 2019.

The rating agency also analyzed the payment levels in the seller's
overall credit card dynamic portfolio, identifying a payment rate
(monthly payment / monthly balance) averaging 61.2% during the last
twelve months as of May 2019.

In assigning the ratings to this transaction, Moody's assumed a
lognormal distribution of losses for the static securitized pool
with a mean expected loss of 7.7% and a PCE of 16.0% (PCE, or the
portfolio credit enhancement, represents the credit enhancement
consistent with the highest rating achievable -i.e., the local
currency ceiling- in the country). These assumptions were derived
considering the historical performance of Cencosud's loan pools and
prior transactions.

Factors that would lead to an upgrade or downgrade of the ratings:

Factors that may lead to a downgrade of the ratings include a
downgrade in Argentina's local currency ceiling and an increase in
delinquency levels beyond the level Moody's assumed when rating
this transaction. Although Moody's analyzed the historical
performance data of previous transactions and similar receivables
originated by Cencosud, the actual performance of the securitized
pool may be affected, among others, by the economic activity, high
inflation rates compared with nominal salaries increases and the
unemployment rate in Argentina.

Factors that may lead to an upgrade of the ratings include an
upgrade in Argentina's local currency ceiling and the building of
credit enhancement over time due to the turbo sequential payment
structure, when compared with the level of projected losses in the
securitized pool.

The principal methodology used in these ratings was Procedures
Manual for the Rating of Financial Trusts published in January
2017.

PAMPA ENERGIA: Fitch Affirms 'B' LT IDR, Outlook Negative
---------------------------------------------------------
Fitch Ratings has affirmed Pampa Energia S.A.'s Long-Term Foreign
Currency and Local Currency IDR at 'B'. The Rating Outlooks for
both are Negative, similar to Argentina's sovereign Outlook. Fitch
also affirmed Pampa's senior unsecured notes at 'B'/'RR4'.

Pampa's 'B' LT FC IDR is constrained by Argentina's Country Ceiling
of 'B', which limits the foreign currency rating of most Argentine
corporates. Fitch's Country Ceilings are designed to reflect the
risks associated with sovereigns placing restrictions upon private
sector corporates, which may prevent them from converting local
currency to any foreign currency under a stress scenario, and/or
may not allow the transfer of foreign currency abroad to service
foreign currency debt obligations.

Pampa's ratings also reflect the Argentine electricity industry's
regulatory risk, as the system continues to require financial
support by the Argentine government, thus, Fitch aligns Pampa's
ratings with its counterparty risk, CAMMESA/Argentina sovereign
(B/Negative). The ratings are constrained by the macro-economic
environment, including high inflation and steep currency
devaluation.

The Negative Outlook, which mirrors that of the Argentine
sovereign, reflects sharply weaker economic activity and uncertain
prospects for multi-year fiscal consolidation and market financing
availability as IMF funds are used up, posing risks to sovereign
debt sustainability. Fitch assumes that in 2019, the Argentine
government will achieve the fiscal adjustment targeted in the
budget and that the recently renegotiated IMF program will help it
fully cover its financing needs but sees downside risks amid a
nascent economic recession and election cycle. After 2019,
prospects for further fiscal consolidation, economic recovery and
restoration of external market access are uncertain and are likely
to be sensitive to the election outcome.

KEY RATING DRIVERS

Heightened Counterparty Exposure: Pampa's power segment, which
represented nearly 44% of EBIT in 2018, receives payments from
CAMMESA, which acts as an agent on behalf of an association
representing agents of electricity generators, transmission,
distribution and large consumers or the wholesale market
participants (Mercado Mayorista Electrico; MEM). Although over the
past 24 months CAMMESA's payment track record has been consistent
and on time, historically, payments have been volatile given that
the agency depends partially on the Argentine government for funds
to make payments. The notable exceptions were a delay in September
and December 2018 in the FX portion of CAMMESA's payment to market
participants due to Argentina's currency crisis.

Uncertain Regulatory Environment: Fitch believes Argentina's
current economic and political environment increases the regulatory
uncertainty. With the recent announcement that tariffs will be
hiked and the presidential elections in October 2019, Fitch
believes power companies are exposed to uncertain regulatory
changes, which could negatively impact their bottom lines and is
reflected in its ratings, aligned to the sovereign. The companies
operate in a highly strategic sector where the government both has
a role as the price/tariff regulator and also controls subsidies
for industry players. Fitch believes the government may adjust
prices paid to generation companies to offset the increased cost of
the system caused by the peso devaluation and continued high energy
losses realized by distribution companies and higher expected
delinquency payments due the challenging economic environment.
Fitch believes the government may force generation companies to
absorb some of the cost.

Diversified Business Profile: Fitch believes Pampa's business
diversification is a credit positive adding to its cash flow
stability. Fitch estimates that power generation comprised of 44%
of EBIT in 2018 followed by 40% from oil and gas, 8% from
electricity distribution. Pampa is a leading company in the
midstream, transmission and electricity distribution segments as
its co-controls Transportadora de Gas del Sur S.A. (TGS),
Transener, and is a majority owner of Edenor. TGS transports 60% of
gas consumed in Argentina and is the leading natural gas liquids
(NGL) processor and marketer in Argentina. While Transener is the
largest high voltage power transmission company in Argentina, with
85% market share, complimented by Edenor, which is the largest
electricity utility company of Argentina with 20% market share as
of YE 2018.

Strong Capital Structure Projected: Fitch's base case forecasts
that total debt to EBITDA will be 2.0x in 2019 and deleverage to
1.4x by 2020, which is consistent with a higher rating category;
nonetheless, Pampa's ratings remained constrained by the Country
Ceiling of Argentina of 'B'. In December 2018, Pampa reported total
debt adjusted for ownership debt of USD2.3 billion resulting in
gross leverage defined as total debt to EBITDA of 2.4x in 2018.
During this time, Pampa reported a total cash position adjusted by
ownership of USD682 million.

Positive FCF Through The Cycle: Fitch anticipates positive FCF for
Pampa through 2022 as the company has modest capex plans aimed at
developing unconventional gas production and three power generation
projects (Genelba and Pampa/De La Bahia). Fitch estimates Pampa's
FCF can average 15% of revenues through 2022, absent any additional
projects increasing capex, extraordinary acquisitions or dividends,
which exceed 10% of net income. Fitch estimates the company will be
able to finance capex plans with cash on hand and operating cash
flow.

Small Production Profile and Adequate Hydrocarbon Reserve Life:
Pampa has small but stable production profile in comparison with
its international peers, but has a strong 1P reserve life of
approximately eight years. Pampa's production size of below 75,000
boed and reserve life below 10 years are consistent with a 'B'
category. Fitch expects the company will continue to focus on
unconventional gas production in the Neuquen basis and maintain its
average production of 45,000 boed, with nearly all of it attributed
to gas production.

DERIVATION SUMMARY

Pampa Energia S.A.'s LT FC IDR is constrained by Argentina's
Country Ceiling (B). This is the same situation for Argentine
utility and energy peers AES Argentina Generacion S.A.
(B/Negative), Capex S.A. (B/Negative), Genneia S.A. (B/Negative),
Compania General de Combustibles (B/Negative) and YPF (B/Negative).


Pampa is a leading power company in Argentina and compares best to
AES Argentina, Capex and Genneia. In 2018, Pampa had the largest
market share by installed capacity with 3.9GW or 10.9% followed by
Central Puerto S.A. at 10.4% (not rated) and AES Argentina at
10.1%. Further, Pampa is a leading developer in the sector adding
627MW of new installed capacity by 2022 from YE 2018, compared to
an additional 180MW underdevelopment from AES Argentina and 481MW
from Genneia. Fitch estimates Pampa will have one of lowest gross
leverage defined as total debt to EBITDA metrics in the country
averaging 1.5x over the rated horizon compared to AES Argentina
2.5x, Capex 1.3x and Genneia's at 4.1x.

Pampa's oil and gas segment compares favorably to other 'B' rated
oil and gas exploration and production producers. These peers
include Frontera Energy Corporation (B+/Negative), Geopark Limited
(B+/Stable), Gran Tierra Energy International Holdings Ltd.
(B/Positive) and Compania General de Combustibles S.A. (CGC;
B/Negative).

Over the rating horizon, Fitch expects Pampa will average 45,000
barrels of oil equivalent per day (boed) between 2019 through 2020.
This is slightly lower than Geopark at 50,000boed, and higher than
Gran Tierra and CGC at 40,000boed. Pampa reported 130 million
barrels of oil equivalent and proven reserves at YE 2018, equating
to a reserve life of eight years. This is higher than Frontera
Energy's 4.3 years, Gran Tierra's 5.9 years, CGC's 5.3 years and
slightly less than GeoPark's 8.7 years. Pampa has a strong reserve
base, and Fitch estimates the company will be able to maintain its
reserve life of greater than seven years as it continues to
increase production size focusing on gas production.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer

  - Total hydrocarbon production of between 45,000 and 50,000 boe/d
between 2019-2022;

  - Average realized natural gas price of USD3.5mmBTU in 2019,
USD3.80mmbtu in 2020, USD4.00mmbtu in 2021 and USD4.10mmbtu in
2022;

  - Electricity prices denominated in USD with an average monomic
price of USD50.24 per MWh between 2019 through 2022 respectively,
reflecting new tariff scheme;

  - Average annual electricity production of nearly 36,591 GWh in
2019 and 2019 and 40,000GWh on average for 2020-2021;

  - CAMMESA payments made within 42 days;

  - Total capex of USD1.5 billion between 2019 through 2022, and an
average annual capex of USD376 million;

  - Dividends payments of 10% of net income between 2019 through
Equity share repurchase of USD100 million executed in 2019 - 2022.

Key Recovery Rating (RR) Assumptions:

  - The recovery analysis assumes that Pampa would be liquidated in
bankruptcy, and Fitch has assumed a 10% administrative claim.

Liquidation Approach: The liquidation estimate reflects Fitch's
view of the value of inventory and other assets excluding its oil
and gas assets that can be realized in reorganization and
distributed to creditors;

  - The 50% advance rate is typical of inventory liquidations for
the oil and gas industry;

  - The USD10 per barrel estimate reflects the typical valuation of
recent reorganizations in the oil and gas industry. The waterfall
results in a 100% recovery corresponding to an 'RR1' for the senior
unsecured notes (USD1,250 million). The RR is limited, however, to
'B'/'RR4' as Argentina is categorized as Group D, per Fitch's
Country-Specific Treatment of Recovery Ratings Criteria, which caps
the recovery ratings at 'RR4.'

RATING SENSITIVITIES

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

  - An upgrade of the ratings of Argentina could result in a
positive rating action;

  - Given the issuer's high dependence on subsidies by CAMMESA from
the Treasury, any further regulatory developments leading to a more
independent market less reliant on support from the Argentine
government could positively affect the company's collections and
cash flow.

- 50% of EBITDA from exports coupled with offshore available cash
and offshore committed undrawn credit facilities cover hard
currency debt service of 1.0-1.5x for a minimum of 1 year.

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

  - A downgrade of the ratings of Argentina could result in a
negative rating action.

  - A reversal of government policies resulting in a significant
increase in subsidies coupled with a delay in payments for
electricity sales;

  - Sustainable production size declines to below 35,000boed; or

  - Reserve life declines to below seven years on a sustained
basis;

  - A significant deterioration of credit metrics to total
debt/EBITDA of 4.5x or more.

LIQUIDITY

Adequate Liquidity: Pampa recently issued a USD300 million senior
unsecured note due 2029 improving its overall cash position to
USD905 million when considering a USD605 million in consolidate
cash position reported in March 2019, which comfortably covers the
USD155 million in maturing debt in 2018 and USD200 million in 2020.
Fitch expects Pampa will likely allocate cash to expedite capex
and/or make acquisitions, as Fitch estimates cash flows from
operations can comfortable cover debt services in the event the
company does not refinance.

FULL LIST OF RATING ACTIONS

Fitch has affirmed the following ratings:

Pampa Energia S.A.

  -- Long-Term Foreign Currency IDR at 'B'; Outlook Negative;

  -- Long-Term Local Currency IDR at 'B'; Negative;

  -- International senior unsecured notes due 2027 and 2029 at
'B'/'RR4'.



===========
B R A Z I L
===========

COMPANHIA SIDERURGICA: S&P Ups Ratings to 'B', Outlook Stable
-------------------------------------------------------------
On Aug. 1, 2019, S&P Global Ratings raised its global and national
scale ratings on Brazilian integrated steel producer Companhia
Siderurgica Nacional (CSN) to 'B' from 'B-' and to 'brA' from
'brBBB+', respectively. At the same time, S&P raised its
issue-level ratings on CSN Islands XI Corp., CSN Islands XII Corp.,
and CSN Resources S.A.'s senior unsecured notes to 'B' from 'B-'.
The issue-level ratings remain at the same level as the long-term
issuer credit rating, reflecting the recovery rating of '4', given
the expected average recovery of 40% (rounded estimate).

S&P said, "The upgrade reflects our expectation that the
skyrocketing iron ore prices will accelerate CSN's deleverage
trend, while it has been able to address most of its liquidity
issues in the past few months with the new bond issuances, bank
debt refinancing, and iron ore prepayments.

"The stable outlook reflects our view that CSN will continue to
deleverage this year, mainly due to the surge in iron ore prices,
while it continues to improve its liquidity position gradually."




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

DOMINICAN REPUBLIC: Chief Opposes Push to Raise Price of Milk
-------------------------------------------------------------
Dominican Today reports that agriculture minister, Osmar Benitez,
said he will not play politics, and that he's not a politician, to
accept the proposal to raise the price of milk to 30 pesos on the
farm, which in his view would hurt consumers.

The official stressed that those who drink the most milk are
children, adolescents and the elderly, according to Dominican
Today.

Benitez responded to the dairies which push to raise the price of
milk on the farm, claiming that they don't increase its price since
2012, while production cost has climbed, the report notes.

Milk producers want to raise the price from the current RD$23.50 to
RD$30.00 per liter, the report relays.

They also argue that they face unfair competition from importers,
whom they affirm control 33% of the national market, the report
adds.

                  About Dominican Republic

The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district.

The Troubled Company Reporter-Latin America reported on April 4,
2019 that the Dominican Today related that Juan Del Rosario of the
UASD Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."

An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.

Standard & Poor's credit rating for Dominican Republic stands at
BB- with stable outlook (2015). Moody's credit rating for Dominican
Republic was last set at Ba3 with stable outlook (2017). Fitch's
credit rating for Dominican Republic was last reported at BB- with
stable outlook (2016).

DOMINICAN REPUBLIC: Economic Activity Posts Sluggish Growth in 1H
-----------------------------------------------------------------
Dominican Today reports that during January to June 2019, economic
activity, measured by the Monthly Economic Activity Indicator
(IMAE) shows growth lower than in 2018 and similar to 2017,
according to Regional Center for Sustainable Economic Strategies
(CREES) senior economist Miguel Collado Di Franco.

"This behavior so far in 2019 has been characterized by
political-institutional uncertainty, which has negatively affected
the investment prospects of economic agents," the economist said,
as quoted by Listin Diario, according to Dominican Today reports
that.

That uncertainty that does not dissipate in view of the continuing
effort to amend the Constitution, "all this within an environment
dominated by the processes of political parties with a view to the
largest elections, within the scope of candidacies, of recent
history," the report notes.

Collado Di Franco adds that other negative factors have joined this
widespread perception of uncertainty, "such as a lower generation
of currencies by sectors such as Free Zones and national exports,
to which the effects of the sensational journalistic coverage of
the tourism sector by means of International communication," the
report adds.

                  About Dominican Republic

The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district.

The Troubled Company Reporter-Latin America reported on April 4,
2019 that the Dominican Today related that Juan Del Rosario of the
UASD Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."

An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.

Standard & Poor's credit rating for Dominican Republic stands at
BB- with stable outlook (2015). Moody's credit rating for Dominican
Republic was last set at Ba3 with stable outlook (2017). Fitch's
credit rating for Dominican Republic was last reported at BB- with
stable outlook (2016).



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

MEXICO: Number of Poor People Falls by 1 Million
------------------------------------------------
The Latin American Herald reports that Mexico had 52.4 million
people classified as poor in 2018, a figure that was down from the
53.4 million people classified as poor in 2016 but still accounted
for 41.9 percent of the population, the National Council for
Evaluation of Social Development Policy (Coneval) said.

Some 9.31 million people, or 7.4 percent of the population, were
classified as extremely poor in 2018, down from 9.37 million
people, or 7.6 percent of the population, in 2016, according to The
Latin American Herald.

Despite the progress made in the past two years, the number of poor
people in Mexico rose from 49.5 million to 52.4 million in the past
decade, the report notes.

The report relays that due to population growth, however, the
percentage of poor people fell from 44.4 percent to 41.9 percent in
the past decade.

In the past decade, according to the Coneval report, the percentage
of the population living in poverty fell by 0.24 percentage points
annually, the report relays.

The Latin American Herald says that as far as extreme poverty goes,
some 12.3 million people, or 11 percent of the population, were in
this category in 2008, with the figure falling to 9.3 million
people, or 7.4 percent of the population, today.

The state with the lowest poverty rate in 2018 was Nuevo Leon, an
industrial state in northern Mexico, at 14.5 percent, while the
southern state of Chiapas was the poorest, with a poverty rate of
76.4 percent, the report notes.

Mexico City was home to 2.7 million poor people, who accounted for
30.6 percent of the capital's population, the report relays.

In the past decade, Mexico has experienced "an improvement in the
social deficiency indicators at the national level and in the
majority of the federal entities," the Coneval report said, The
Latin American Herald relays.

The percentage of the population that did not complete their basic
education fell from 21.9 percent in 2008 to 16.9 percent in 2018,
while the percentage of the population without access to health
services fell from 38.4 percent to 16.2 percent, The Latin American
Herald discloses.

The lack of access to social security was reduced from 65 percent
in 2008 to 57.3 percent in 2018, while food insecurity fell from
21.7 percent to 20.4 percent in 10 years, The Latin American Herald
says.

The percentage of the population without housing dropped from 17.7
percent to 11.1 percent, while the percentage of the population
lacking access to basic utility services at home fell from 22.9
percent to 19.8 percent, the report said, The Latin American Herald
relays.

The percentage of indigenous people living in poverty decreased
from 76 percent in 2008 to 74.9 percent in 2018.

"Public policy should continue dealing with social deficiencies,
especially by increasing family incomes and expanding social
security coverage," the Coneval report said, The Latin American
Herald notes.

President Andres Manuel Lopez Obrador has recently questioned the
need for the Coneval, raising the possibility of dismantling the
council as part of his austerity push, The Latin American Herald
adds.



=====================
P U E R T O   R I C O
=====================

INVERSIONES CARIBE: Sept. 11 Hearing on Disclosure Statement
------------------------------------------------------------
A hearing on approval of the disclosure statement explaining the
Chapter 11 Plan of Inversiones Caribe Delta is scheduled for
September 11, 2019 at 9:00 A.M.

Objections to the form and content of the disclosure statement must
be filed and served not less than fourteen (14) days prior to the
hearing.

                 About Inversiones Caribe

Inversiones Caribe owns a parcel of land in Dorado, Puerto Rico,
which is valued at $6 million, and a commercial property in Ponce,
Puerto Rico, which is valued at $1.4 million.

Inversiones Caribe Delta filed a Chapter 11 petition (Bankr. D.P.R.
Case No. 19-00388) on Jan. 29, 2019.  In the petition signed by
Carlos F. Muratti, president, the Debtor disclosed $7,415,061 in
assets and $3,619,549 in liabilities.  The case has been assigned
to Judge Brian K. Tester.  Carmen D. Conde Torres, Esq., at C.
Conde & Assoc., is the Debtor's counsel.

The case is jointly administered with the Chapter 11 case of
Preserba Compania de Desarrollos, Inc. (Case No. 19-00387).

LUBY'S INC: Appoints John Morlock as Director
---------------------------------------------
The Board of Directors of Luby's, Inc., appointed John Morlock as a
director on July 30, 2019.  Mr. Morlock is expected to serve on the
Personnel and Administrative Policy Committee and the Executive
Compensation Committee.  Mr. Morlock, an independent director of
the Company, is an accomplished executive in the restaurant
industry with significant experience in corporate and franchise
operations.

There are no arrangements or understandings between Mr. Morlock and
any person who was involved in Mr. Morlock's selection as a
director.  There are no transactions involving Mr. Morlock that
would be required to be reported under Item 404(a) of Regulation
S-K.  Mr. Morlock will be compensated in accordance with the
Company's standard compensation program for non-employee directors
as described in the Company's proxy statement filed with the
Securities and Exchange Commission on Dec. 21, 2018.

                         About Luby's

Houston, Texas- based Luby's, Inc. (NYSE: LUB) --
http://www.lubysinc.com/-- operates 130 restaurants nationally as
of June 5, 2019: 80 Luby's Cafeterias, 49 Fuddruckers, one
Cheeseburger in Paradise restaurants.  Luby's is the franchisor for
107 Fuddruckers franchise locations across the United States
(including Puerto Rico), Canada, Mexico, Colombia, and Panama.
Luby's Culinary Contract Services provides food service management
to 32 sites consisting of healthcare, corporate dining locations,
sports stadiums, and sales through retail grocery stores.

Luby's reported a net loss of $33.56 million for the year ended
Aug. 29, 2018, compared to a net loss of $23.26 million for the
year ended Aug. 30, 2017.  As of June 5, 2019, Luby's had $192.06
million in total assets, $81.91 million in total liabilities, and
$110.15 million in total shareholders' equity.

Grant Thornton LLP, in Houston, Texas, issued a "going concern"
qualification in its report on the consolidated financial
statements for the year ended Aug. 29, 2018, noting that the
Company sustained a net loss of approximately $33.6 million and net
cash used in operating activities of approximately $8.5 million.

The Company's term and revolving debt of approximately $39.5
million is due May 1, 2019.  The Company was in default of certain
debt covenants of its term and revolving credit agreements maturing
on May 1, 2019.  On Aug. 24, 2018, the lenders agreed to waive the
existing events of default resulting from any breach of certain
financial covenants or the limitation on maintenance capital
expenditures, in each case that may have occurred during the period
from and including May 9, 2018 until Aug. 24, 2018, and any related
events of default.  Additionally, the lenders agreed to waive the
requirements that the Company comply with certain financial
covenants until Dec. 31, 2018, at which time the Company will be in
default without an additional waiver or alternative financing.
These conditions, along with other matters, raise substantial doubt
about the Company's ability to continue as a going concern.

LUBY'S INC: Gasper Mir Quits as Board Chairman
----------------------------------------------
Gasper Mir resigned from his position as chairman of the Board of
Directors of Luby's, Inc., effective July 31, 2019.  Mr. Mir will
continue to serve as a member of the Board.  Furthermore, the Board
appointed Gerald Bodzy to serve as independent Chairman of the
Board, effective Aug. 1, 2019.

                         About Luby's

Houston, Texas- based Luby's, Inc. (NYSE: LUB) --
http://www.lubysinc.com/-- operates 130 restaurants nationally as
of June 5, 2019: 80 Luby's Cafeterias, 49 Fuddruckers, one
Cheeseburger in Paradise restaurants.  Luby's is the franchisor for
107 Fuddruckers franchise locations across the United States
(including Puerto Rico), Canada, Mexico, Colombia, and Panama.
Luby's Culinary Contract Services provides food service management
to 32 sites consisting of healthcare, corporate dining locations,
sports stadiums, and sales through retail grocery stores.

Luby's reported a net loss of $33.56 million for the year ended
Aug. 29, 2018, compared to a net loss of $23.26 million for the
year ended Aug. 30, 2017.  As of June 5, 2019, Luby's had $192.06
million in total assets, $81.91 million in total liabilities, and
$110.15 million in total shareholders' equity.

Grant Thornton LLP, in Houston, Texas, issued a "going concern"
qualification in its report on the consolidated financial
statements for the year ended Aug. 29, 2018, noting that the
Company sustained a net loss of approximately $33.6 million and net
cash used in operating activities of approximately $8.5 million.

The Company's term and revolving debt of approximately $39.5
million is due May 1, 2019.  The Company was in default of certain
debt covenants of its term and revolving credit agreements maturing
on May 1, 2019.  On Aug. 24, 2018, the lenders agreed to waive the
existing events of default resulting from any breach of certain
financial covenants or the limitation on maintenance capital
expenditures, in each case that may have occurred during the period
from and including May 9, 2018 until Aug. 24, 2018, and any related
events of default.  Additionally, the lenders agreed to waive the
requirements that the Company comply with certain financial
covenants until Dec. 31, 2018, at which time the Company will be in
default without an additional waiver or alternative financing.
These conditions, along with other matters, raise substantial doubt
about the Company's ability to continue as a going concern.

PUERTO RICO: Political Crisis Shifts to the Courts
--------------------------------------------------
The Latin America Herald reports that the institutional crisis in
Puerto Rico looked set to be resolved in the courts after the
island's Supreme Court agreed to hear a challenge to the
installation of Pedro Pierluisi as governor, replacing the
disgraced Ricardo Rossello.

The high court will convene to consider a motion brought by Senate
chief Thomas Rivera Schatz, who claims that the ratification of
Pierluisi by the House of Representatives fell short of what is
required by a 1952 piece of legislation known as Law 7, according
to The Latin America Herald.

Pierluisi, formerly Puerto Rico's non-voting representative in the
US Congress, took the oath of office, minutes after Rossello
stepped down following weeks of protests, the report notes.

Under the constitution of this US commonwealth, the secretary of
state is supposed to become governor in the event the incumbent is
unable to continue in office, the report says.

The now-former governor disclosed his resignation on July 24 after
weeks of mass protests spurred by the publication of private chats
among Rossello, top aides and friends, the report recalls.

The position of secretary of state was vacant at the time of
Rossello's announcement, as incumbent Luis Rivera Marin had quit on
July 13 as a result of the chat scandal, and the initial plan
called for Justice Minister Wanda Vazquez to assume the
governorship, the report notes.

But in the face of hostile public reaction, Vazquez--a Rossello
ally herself accused of ethical lapses--quickly renounced her
claim, the report relays.

Puerto Rico's political leaders eventually settled on the idea of
making Pierluisi secretary of state and then having him succeed
Rossello, the report notes.

Pierluisi was sworn as secretary of state and had been scheduled to
appear before the Senate the following day for a confirmation
hearing, the report says.

But Rivera decided to postpone the confirmation and the Senate was
supposed to take up the matter, but deferred consideration in light
of the impending Supreme Court hearing, the report discloses.

The lower house confirmed Pierluisi as secretary of state, barely
an hour before Rossello abandoned office, the report notes.

A motion in the Senate to confirm Pierluisi would have gone down to
overwhelming defeat, Rivera said, the report discloses.

Sen. Juan Dalmau of the minority pro-independence PIP party said
that Puerto Rico had passed from "a criminal governor to a vulture
governor," apparently alluding to Pierluisi's work with a law firm
representing the hugely unpopular Fiscal Control Board, a panel
appointed by Washington to oversee the island's finances, the
report relays.

"With the greatest deference to the Supreme Court of Puerto Rico, I
will await their decision, confident that what is best for Puerto
Rico will prevail," Pierluisi said, the report notes.

Though the court will hear arguments, a final ruling could take
weeks, the report notes.

Published by the Center for Investigative Journalism, the 800-plus
pages of chats that brought down Rossello include references to San
Juan Mayor Carmen Yulin Cruz and Melissa Mark-Viverito, the Puerto
Rico-born former president of the New York City Council, as
"whores," the report notes.

In one exchange, Rossello responds approvingly when an official
says he would like to shoot Mayor Cruz, while a gubernatorial aide
jokes about the thousands of Puerto Ricans who died in 2017 as a
result of Hurricane Maria, the report discloses.

Some people found the especially outlandish statements less
disturbing than an overall tone that seemed to show an
administration more concerned about its image than with addressing
the crisis, the report notes.

And the publication of the chats came as the Rossello government
was reeling from the arrests of two former senior officials on
charges of fraud, theft and money laundering, adds the report.

                         About Puerto Rico

Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70 billion,
a 68% debt-to-GDP ratio and negative economic growth in nine of the
last 10 years.

The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.

The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III of
2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').

The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017.  On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").

U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases.  The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that may
be referred to her by Judge Swain, including discovery disputes,
and management of other pretrial proceedings.

Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.

The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.

Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.

McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets Inc.
is the Board's municipal investment banker.

Prime Clerk LLC is the claims and noticing agent.  Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico

Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.

O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.

The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.

                    Bondholders' Attorneys

Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet, Rivera
& Sifre, P.S.C. and serve as counsel to the Mutual Fund Group,
comprised of mutual funds managed by Oppenheimer Funds, Inc., and
the First Puerto Rico Family of Funds, which collectively hold over
$4.4 billion of GO Bonds, COFINA Bonds, and other bonds issued by
Puerto Rico and other instrumentalities.

White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.

Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP, Autonomy
Capital (Jersey) LP, FCO Advisors LP, and Monarch Alternative
Capital LP.

Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.

Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ Management
II LP (the QTCB Noteholder Group).

                          Committees

The U.S. Trustee formed an official committee of retirees and an
official committee of unsecured creditors of the Commonwealth.  The
Retiree Committee tapped Jenner & Block LLP and Bennazar, Garcia &
Milian, C.S.P., as its attorneys.  The Creditors Committee tapped
Paul Hastings LLP and O'Neill & Gilmore LLC as counsel.



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

VENEZUELA: Maduro Asks Locals to Brace for Possible Blockade by US
------------------------------------------------------------------
The Latin American Herald reports that Venezuela's embattled
incumbent Nicolas Maduro asked the citizens of his country to be
prepared for a United States blockade of the South American nation,
calling such a possible action as illegal.

In a television and radio broadcast, Maduro urged his countrymen to
be prepared "for a battle if they (the US) try to impose quarantine
against Venezuela," according to The Latin American Herald.

Maduro said the country "in a civic-military union repudiates and
rejects the statements of (US President) Donald Trump of a supposed
blockade" and asked the army and the people of Venezuela to stay
alert, the report notes.

The Latin American Herald says that Maduro made these remarks
despite having regularly denounced the existence of an alleged
blockade against the country since 2017, when the Trump
administration began imposing sanctions on military and civilian
personnel loyal to the president.

He also said Venezuela's ambassador to the United Nations, Samuel
Moncada, had reported "Donald Trump's illegal and criminal threat
of a naval blockade and quarantine against Venezuela" to the UN
Security Council, the report relays.

Trump had admitted that he was considering imposing a "blockade or
quarantine" on Venezuela in the midst of tensions between the two
governments, the report relays.

Asked by reporters whether he was considering such an action, Trump
replied, "Yes, I am," without giving any details, the report
notes.

The country's incumbent said no one can impose blockade on
Venezuela as the country's seas will remain "free and independent,"
the report says.

According to Maduro, Trump's threat shows the "desperation" and
"irritation" of the current US administration, and is proof that
Venezuela is on the "right path," the report notes

Tensions between Venezuela and the US have intensified in recent
weeks.

The Latin American Herald says that Venezuela's armed forces
reported a new incursion of the country's air space by the US.

The Trump-led government has toughened its strategy against the
Maduro administration, which broke ties with Washington on Jan. 23
after the White House recognized the leader of the opposition, Juan
Guaido, also Venezuelan parliament speaker, as the president of the
country, the report discloses.

Guaido had earlier invoked the constitution to take oath as interim
president, the report relays.

Since then, Washington, which considers the Maduro regime
illegitimate, has announced a series of sanctions against
officials, family members and those close to Maduro, the report
adds.

                          About Venezuela

Venezuela, officially the Bolivarian Republic of Venezuela, is a
country on the northern coast of South America, consisting of a
continental landmass and a large number of small islands and
islets in the Caribbean sea.  The capital is the city of Caracas.

Hugo Chavez was president to Venezuela from 1999 to 2013.  The
Chavez presidency was plagued with challenges, which included a
2002 coup d'etat, a 2002 national strike and a 2004 recall
referendum.  Nicolas Maduro was elected president in 2013 after
the death of Chavez.  Maduro won a second term at the May 2018
Venezuela elections, but this result has been challenged by
countries including Argentina, Chile, Colombia, Brazil, Canada,
Germany, France and the United States who deemed it fraudulent and
moved to recognize Juan Guaido as president.

The presidencies of Chavez and Maduro have challenged Venezuela
with a socioeconomic and political crisis.  It is marked by
hyperinflation, climbing hunger, poverty, disease, crime and death
rates, social unrest, corruption and emigration from the country.

Standard and Poor's long- and short-term foreign currency
sovereign credit ratings for Venezuela stands at 'SD/D'
(November 2017).

S&P's local currency sovereign credit ratings on the other hand
are 'CCC-/C'. The May 2018 outlook on the long-term local currency
sovereign credit rating is negative, reflecting S&P's view that the
sovereign could miss a payment on its outstanding local currency
debt obligations or advance a distressed debt exchange operation,
equivalent to default.

Moody's credit rating (long term foreign and domestic issuer
ratings) for Venezuela was last set at C with stable outlook
(March 2018).

Fitch's long term issuer default rating for Venezuela was last set
at RD (2017) and country ceiling was CC. Fitch, on June 27, 2019,
affirmed then withdrew the ratings due to the imposition of U.S.
sanctions on Venezuela.


                           *********


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 * * *