/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/190927.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 Friday, September 27, 2019, Vol. 20, No. 194 Headlines A R G E N T I N A COMPANIA GENERAL DE COMBUSTIBLES: Fitch Affirms CCC LongTerm IDR B R A Z I L BRAZIL: Salmon Group Ceases Buying Brazilian Soy for Fish Feed EMBRAER SA: Employees in Sao Jose Strike for Higher Wages MARFRIG GLOBAL: Fitch Affirms BB- LongTerm IDRs, Outlook Stable C H I L E AES GENER: S&P Assigns 'BB' Rating on New Jr. Subordinated Notes D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Floodwaters Ruin Hundreds of Crops DOMINICAN REPUBLIC: Thomas Cook Collapse Roils Tourism J A M A I C A JAMAICA: CDB President Calls For More Investment in MSMEs JAMAICA: Increases 2019/2020 Budget P U E R T O R I C O KONA GRILL: Exclusivity Period Extended Until Dec. 31 T R I N I D A D A N D T O B A G O CL FIN'L: Stalemate Keeping Back Central Bank's Exit PETROLEUM CO: 'Be Patient on Refinery,' OTWU Says - - - - - ================= A R G E N T I N A ================= COMPANIA GENERAL DE COMBUSTIBLES: Fitch Affirms CCC LongTerm IDR ---------------------------------------------------------------- Fitch Ratings affirmed the Long-Term Foreign Currency Issuer Default Rating at 'CCC' and Local Currency IDR at 'B-' of Compania General de Combustibles S.A. The Rating Outlook for the LC IDR is Negative. Fitch has also affirmed the company's USD300 million senior unsecured bonds at 'CCC+'/'RR3'. CGC's FC IDR is capped by Argentina's country ceiling of Argentina of 'CCC', which reflects the Argentine government's recent imposition of capital controls as of Sept. 2 and the potential that the controls could be further tightened given the sovereign's limited foreign financing options, especially as the authorities attempt to prevent a continued decline in international reserves. Fitch believes the current controls and risks of further tightening could potentially impair the company's ability to access foreign currency to meet debt service, in spite of exceptions that have been included in the controls for debt repayment. The Negative Outlook assigned to the LC IDR reflects the short-term uncertainty of the operating environment. Uncertainties include the volatility of the Argentine peso, ambiguity of future federal government policies that inhibit the ability to pass through operating costs for companies, particularly in the energy sector and the near-term expectation that the fiscal challenges of the Argentine government could result in further policy adjustments in the electricity market. The 'CCC+'/'RR3' rating on the USD300 million senior unsecured notes due 2021, are one notch above CGC's FC IDR and reflect expected above-average recovery for creditors, given a default. Although a bespoke recovery analysis yields a higher than 70% recovery, given a default, Fitch's 'Country-Specific Treatment of Recovery Ratings Criteria' allows for a one notch uplift for recovery whenever there is a two notch rating differential between a company's FC and LC ratings. In instances when the difference between the FC and LC rating is one notch or less, Argentine corporates would be capped at an average recovery rating (RR) of 'RR4', which is in the range of 31% to 50%. KEY RATING DRIVERS Exposure to the Government: Fitch believes CGC's cash flows can be negatively affected by payment delays from the Argentine government. Fitch estimates that between 15%-20% of CGC's 2019 revenues are associated with Plan Gas subsidies, paid by the Argentine government (CC), who does not have a strong track record of paying this subsidy. For example, in January 2019, the Argentine Secretariat of Energy Government's (SGE) halted Resolucion 46 (Res. 46) for new projects and reinterpreted the volume of production that would receive the preferential pricing, adversely affecting some companies. Fitch estimates the reinterpretation of Res. 46 does not affect CGC as the company has maintained its production in line with what was presented to the government in 2018. Impact of Capital Controls: Fitch believes the capital control measures announced by the Argentine central bank (BCRA) on Aug. 30 could adversely affect CGC's liquidity profile. Fitch's base case assumes that CGC will export oil and gas over the rating horizon providing the company the ability to generate cash flows outside of Argentina, helping to offset the risk of the operating environment. The capital controls currently prevent the company from strengthening its balance sheet with U.S. dollars exposing it to FX risk, as 100% of the company's debt is in U.S. dollars. Heightened Refinancing Risk: Fitch's base case assumes CGC will refinance and/or roll-over debt maturities in 2020 and 2021, but given the current financing environment, there is a heightened risk that CGC will not be able to economically refinance its maturing debt. In this event, Fitch estimates that the company will have to materially adjust capex in order to prioritize debt repayment, in order to fully repay the USD300 million and the USD70 million of local class 10 notes maturing in 2021 with cash and FFO. Fitch estimates the company has 3.2 years of developed reserve life, assuming 41.7 MMBoe. Stable Cash Flow Profile: Fitch expects CGC will have positive FCF from 2020 through 2022 partially due to the company receiving preferential pricing for gas under Res. 46 guaranteeing a price ceiling through 2021. Fitch estimates FFO will average USD200 million from 2019 through 2022, comfortably covering expected development capex to maintain production levels. Fitch's estimates do not assume dividend payments to shareholders. Small Production Profile: CGC's ratings remain constrained in part due to its small size and the low diversification of its blocks. Fitch estimates that CGC will average 39,000 boed between 2019 and 2022 with 85% of production in gas. Fitch believes the company can comfortably maintain this production level and cash flow from operations will adequately cover capex to maintain production. Low Hydrocarbon Reserves: Fitch believes CGC's relatively low reserve life of five years limits its flexibility to reduce capex investments. As of YE 2018, CGC reported 1P reserves of 59.3 million boe, with 83% related to natural gas. The company extended its concessions in the Santa Cruz I and Santa Cruz II areas to 2027, which is expected to improve the company's reserve life to be in-line with the median for Fitch-rated speculative-grade peers. Fitch estimates that the company will drill 60 wells by 2021 at an average cost per well of USD4.0 million to replenish reserves, which Fitch estimates is necessary in order to maintain its current reserve life. DERIVATION SUMMARY CGC's production size compares favorably with other 'B' rated oil and gas E&P producers, but continues to constrain its rating to the 'B' category. These peers include Frontera Energy (B+/Negative), Gran Tierra Energy (B/Positive) and Geopark (B+/Stable). Over the rating horizon, Fitch expects that CGC will average 39,000 boed through 2022 compared with 40,000 boed for Gran Tierra Energy and 50,000 boed for Geopark over the same time period, and less than Frontera Energy at 70,000 boed. Further, CGC reported 59.3 million boe 1P reserves at the end of 2018 equating to a reserve life of 5.0 years, lower than GeoPark's at 8.7 years, Gran Tierra's at 5.7 years, but higher than Frontera's at 4.3 years. Fitch expects the company will be able to maintain its reserve life as it continues to increase production size. CGC's has a capital structure of 2.0x in 2018. Fitch expects gross leverage to be approximately 2.1x in 2019 as a result of increased production and improved prices. CGC's leverage is slightly higher than GeoPark's at 1.2x, Gran Tierra's at 1.7x and Frontera Energy at 0.7x. On a total debt to 1P, Fitch estimates CGC's USD7.56boe is higher than Geopark at USD3.90boe and Frontera at USD3.40boe, but lower than Gran Tierra at USD10.21boe. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer -- Oil and gas production to average 39,000 boe/d over the next four years; -- Oil prices straight-lining over next five years to the Fitch Price Deck assumption of a long-term price of USD57.50/bbl; -- 50% of gas production receiving plan gas preferential pricing of USD7.50 MMBTU in 2018, decreasing by USD0.50 MMBTU each year until reaching USD6.00 MMBTU in 2021; -- Average capex of USD126 million between 2019 and 2022; -- Refinancing of the notes maturing in 2021. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action -- An upgrade to the ratings of Argentina could result in a positive rating action coupled with an improvement in financing condition. Developments That May, Individually or Collectively, Lead to Negative Rating Action -- A downgrade to the ratings of Argentina could result in a negative rating action; -- Given the issuer's high dependence on the subsidies from Plan Gas, any changes to or cancellation of plan gas that negatively impact the company's collection/cash flows will result in a negative rating action; -- A significant deterioration of credit metrics to total debt/EBITDA of 5.5x or more. Sustained declines in hydrocarbon reserves/production levels to less than 25,000 boe/d. LIQUIDITY Tight Liquidity: Total cash and equivalents amounted to approximately USD61 million as of June 30, 2019. Fitch assumes the company will repay USD15.6 million associated with the recent consent solicitation exercise completed for its local 2021 notes. Fitch's base case assumes CGC will refinance and/or roll-over bond maturities in 2021, but given the current financing environment, there is a heightened risk that CGC will not be able to economically refinance its maturing debt. In this event, Fitch estimates that the company will have to material adjust capex down in order to fully repay the USD300 million and the USD70 million of local clase 10 notes maturing in 2021 with cash and FFO. FULL LIST OF RATING ACTIONS Compania General de Combustibles, S.A -- Long-term FC IDR affirmed at 'CCC'; -- Long-term LC IDR affirmed at 'B-'; Outlook Negative; -- Long-term senior unsecured notes affirmed at 'CCC+'/'RR3'. =========== B R A Z I L =========== BRAZIL: Salmon Group Ceases Buying Brazilian Soy for Fish Feed -------------------------------------------------------------- Rio Times Online reports that Norwegian Salmon Group will phase out the use of Brazilian-grown soy in its feeds, the group said in a press release. This Group's 44 members comprise small and medium-sized farmers, but together they purchase around 12 percent of all fish feed that is sold to salmon and trout farmers in Norway, which translates as 190,00 tons per year, according to Rio Times Online. Three weeks ago, Salmon Group signed a deal with fish feed manufacturer, BioMar, for a bespoke feed formulation, the report notes. As reported in the Troubled Company Reporter-Latin America on Sept. 23, 2019, DBRS, Inc. (DBRS) confirmed the Federative Republic of Brazil's Long-Term Foreign and Local Currency - Issuer Ratings at BB (low). At the same time, DBRS confirmed the Federative Republic of Brazil's Short-term Foreign and Local Currency - Issuer Ratings at R-4. The trend on all ratings is Stable. EMBRAER SA: Employees in Sao Jose Strike for Higher Wages --------------------------------------------------------- Dorah Feliciano at Rio Times Online reports that Embraer S.A. employees started a strike on September 24th. According to the Metalworkers Union of Sao Jose dos Campos, they claim greater salary raises and maintenance of all rights established in the collective bargaining agreement. The report notes that in an assembly, employees have rejected the salary increase equal to last year's inflation of 3.28 percent, which had been proposed in negotiations by the Federation of Industries of the State of Sao Paulo (FIESP). Workers demand a real adjustment of 6.37 percent, according to Rio Times Online. In addition, they want the collective bargaining agreement to preserve the tenure of injured employees and for outsourcing to remain restricted at the plant, the report adds. As reported in the Troubled Company Reporter - Latin America on Feb. 6, 2019, Moody's Investors Service has placed the Ba1 rating of Embraer S.A's senior unsecured notes under review for upgrade. Embraer's Ba1 corporate family rating remains unchanged. MARFRIG GLOBAL: Fitch Affirms BB- LongTerm IDRs, Outlook Stable --------------------------------------------------------------- Fitch Ratings affirmed Marfrig Global Foods S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings at 'BB-', and Marfrig Holdings B.V., MARB BondCo PLC and NBM US Holdings, Inc.'s senior unsecured notes at 'BB-'. Fitch upgraded Marfrig's National Scale rating to 'AA-(bra)' from 'A(bra)' due to the group's improved liquidity and good operation performance. The Rating Outlook is Stable. KEY RATING DRIVERS Robust Business Position: Marfrig's ratings incorporate the company's size and geographic diversification in the volatile protein commodity industry. Marfrig is a pure beef player with a processing capacity of 32,800 head/day. National Beef is the fourth-largest beef processor in the United States with approximately 14% of the beef processing capacity in the U.S. (13,100 head/day). In South America, Marfrig is one of the region's leading beef producers, with a primary processing capacity of more than 19,700 heads of cattle per day. The company has eleven accredited plants for exporting to China. Favorable Financial Trends: Marfrig owns 51% of National Beef but consolidates its financials. As a result, for analytical purposes, Fitch excludes about USD300 million (USD150 million paid in first-half 2019) of dividends paid to National Beef's minorities from EBITDA of about USD1.0 billion to USD1.1 billion expected for 2019. Fitch expects Marfrig's adjusted net leverage to remain steady at about 3.5x in 2019 before dropping toward 3.0x in 2020. Marfrig is benefiting from strong trends in the industry due to favorable cattle cycles in Brazil and the U.S., strong demand for protein in the U.S. and other key markets, and rising protein prices globally as a result of the African Swine Flu, which has decimated China's pork industry and increased demand for protein from that market. The reopening of export markets such as China and the Middle East to Brazilian producers of beef is also bolstering the company's performance, as is the new sanitary agreement between Japan and Uruguay that authorized exports of fresh beef between the two countries, as Marfrig is the largest beef exporter in Uruguay. Geographical Diversification: Marfrig's exposure to the volatile beef segment of the protein sector is partially mitigated by its geographic diversification into the two largest beef producing markets. Fitch estimated that National Beef represented about 70% of the group EBITDA and the remaining 30% is represented by South America (mostly in Brazil). Sales from National Beef are primarily made in the U.S., which reduces the company's exposure to risks related to trade tariffs, quotas and bans. Marfrig's geographic diversification also helps to decrease risks related to disease, cattle cycles and currency fluctuation. The company continues to make bolt-on acquisitions in its key market during 2019 including Quickfood in Argentina (USD55 million), Varzea Grande in Brazil (BRL100 million) and Iowa Premium LLC (USD150 million) in the U.S. (incorporated under National Beef). Favorable Beef Outlook: Marfrig's competitive advantages stem from a favorable environment to raise cattle in Brazil and the U.S., the large scale of operations, access to exports markets from Brazil and the U.S. and long-term relationships with farmers, customers and distributors. Global beef fundamentals are expected to remain positive in the next couple of years for Brazilian and U.S. producers due to increased demand and better cattle availability. U.S. beef production is forecast to grow by nearly 2% in 2019, according to the USDA. In exports, Brazil and Argentina are poised to remain top suppliers to China as the country makes a concerted effort to boost its beef supplies as pork production will be hindered by disease issues. ESG CONSIDERATION Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of 3 - ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch assigns a score of 3 for the factor regarding the use of animal production; food quality and safety and labor relations. Marfrig has an ESG Relevance Score of 4 on governance for ownership concentration due to the control of the company by the Molina's family and the lack of a detailed succession plan. The shareholder's strong influence upon management could result in decisions being made to the detrimental to the company's creditors. DERIVATION SUMMARY Marfrig's ratings reflect its solid business profile and geographic diversification as a pure play in the beef industry with a large presence in South America (notably Brazil) and in the U.S. with National Beef. Marfrig is well positioned to compete in the global protein industry due to its size and geographic diversification. The business compares favourably regarding size with its regional peer Minerva S.A. (BB-/Stable), which is mainly a beef processor in South America. JBS S.A. (BB/Stable) and Tyson Foods (BBB/Stable) enjoy a higher level of scale of operations, stronger FCF, and higher product and geographical diversification than Marfrig. JBS's rating is constrained by ongoing litigation issues. Regarding net leverage, Marfrig compares favorably with Minerva (BB-) but unfavorably with Tyson or JBS. Marfrig is subject to a put option from minority shareholders. This put option related to National Beef could be exercised in January 2023 (payable one-third each year). The put option would be accelerated in the event of a change in control of Marfrig Global Foods S.A. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer -- Sales are driven by positive consumer demand in the U.S. and Brazil; -- Bolt-on acquisitions; -- Net leverage steady at about 3.5x as of YE2019. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action -- Sustainable and positive FCF; -- Improved and resilient group's operating margins; -- Substantial decrease in gross and net leverage to below 4.5x and 3.0x, respectively, on a sustained basis. Developments That May, Individually or Collectively, Lead to Negative Rating Action -- Negative FCF on a sustained basis; -- Net leverage above 4.5x on a sustainable basis. LIQUIDITY Adequate Liquidity: As of June 30, 2019, Marfrig had USD1.7 billion of cash and cash equivalents compared with USD617 million of short-term debt. The short-term debt is mainly related to trade finance lines. FULL LIST OF RATING ACTIONS Fitch has taken the following rating actions: Marfrig Global Foods S.A. -- Affirmed the Long-Term Foreign and Local Currency IDR at 'BB-'; -- Upgraded the National Long-Term Rating to 'AA-(bra)' from 'A(bra)'; The Rating Outlook is Stable. Marfrig Holdings (Europe) B.V. -- Affirmed Senior unsecured notes due 2023 at 'BB-'. MARB BondCo PLC -- Affirmed Senior unsecured notes due 2024 and 2025 at 'BB-'. NBM US Holdings, Inc -- Affirmed senior unsecured notes due 2026 at 'BB-'. -- Affirmed senior unsecured bond due 2029 at 'BB-'. ========= C H I L E ========= AES GENER: S&P Assigns 'BB' Rating on New Jr. Subordinated Notes ---------------------------------------------------------------- On Sept. 25, 2019, S&P Global Ratings assigned its 'BB' long-term rating to the proposed junior subordinated notes on Chilean power generation company, AES Gener S.A. (Gener). S&P assesses the proposed notes as having minimum equity content. At the same time, S&P affirmed its existing 'BB' rating on the $550 million junior subordinated notes due 2079, and its 'BBB-' issuer credit and senior debt ratings. S&P said,"We categorize the proposed notes as having minimal equity content because they're subordinated in liquidation to all of AES Gener's senior debt obligations, can't be called for at least five years, and are not subject to features that could discourage or materially delay deferral. Even though the proposed issuance's terms and conditions are substantially similar to the existing $550 million hybrid bond the company issued in March, which we assess as having intermediate equity content, Gener's adjusted capitalization already reached our maximum threshold for hybrid instruments of 15%. As such, we assess the proposed notes as having minimal equity content, meaning they will be treated as financial debt in full. However, if in the following years, we observe that adjusted capitalization improves for instance for the incorporation of additional assets under the expansionary renewable plan that the company is developing, we could revise the equity content of the new subordinated issuance. Our analysis of Gener's adjusted senior debt excludes the project financing debt of Alto Maipo, Angamos, and Cochrane because we don't envision financial support from Gener to these entities in case of financial distress." S&P derives its 'BB' rating on the proposed notes from its 'BBB-' rating on Gener. The two-notch difference reflects our notching methodology, which calls for deducting: -- One notch for subordination given that the notes will be subordinated to the senior debt and senior only to the common shares. Moreover, the notes will be structurally subordinated to all existing and future unsecured and unsubordinated debt and other liabilities of the company's operating subsidiaries; and -- An additional notch for payment flexibility, because the deferral of interest is at the option of the issuer. S&P said, "The affirmation of the existing issuer credit ratings continues to reflect our view that Gener will keep benefiting from the predictable cash flow generation given its long-term power purchase agreements (PPAs), which have an average remaining term of 10 years and are with creditworthy counterparties including major distribution companies, large copper mines, and industrial conglomerates. In addition, we expect Gener to focus on developing a massive renewable portfolio in Chile and Colombia of more than 4,000 megawatts (MW) of installed capacity, which would allow it to transition its energy matrix into a greener one. We believe this strategy mitigates the main challenge for the company, which in our view is the recontracting of its coal-fired plants, given that mining companies (that buy almost 70% of Gener's contracted capacity) have already expressed their preference for renewable power sources. In our view, Gener will manage its debt in order to maintain a debt-to-EBITDA ratio below 2.0x, even amid the construction of the renewable wind and solar parks. "We continue to believe Chile will be the main cash contributor for Gener, with about 70% of adjusted EBITDA (as of December 2018), underpinned by the abovementioned long-term contracts. Chile is followed by Colombia, which accounts for almost 20% of Gener's total capacity, mainly through the company's stake in AES Chivor & Cia. SCA ESP (Chivor; not rated). "The stable outlook reflects our expectation that Gener will post robust credit metrics in the next two years, including adjusted debt to EBITDA below 2.0x, even considering the development of new renewable capacity. Additionally, the outlook incorporates our view that after the changes in Alto Maipo's contract, Gener won't need to inject any more extraordinary equity into this project. "In the next two years, we could downgrade Gener if its net debt to EBITDA persistently exceeds 2.5x, for instance, because of higher leverage to finance the construction of new capacity. In addition, if the company provides additional support to Alto Maipo, our analysis would consolidate the project's debt into Gener's, which could worsen the company's credit metrics and could prompt us to lower the ratings. Finally, if recontracting becomes more challenging, particularly for its coal assets, we could take a negative rating action. "We could raise the ratings on Gener if investments in the renewable projects occur in a timely manner, with debt to EBITDA close to 1.5x and sustained free operating cash flow (FOCF) to debt of above 25%, while we continue to view Alto Maipo as an independent project." The 'BB' issue-level ratings on the existing and proposed junior subordinated notes reflect their subordinated nature to the senior debt (senior only to the common shares) and to all existing and future unsecured and unsubordinated debt and other liabilities of the company's operating subsidiaries. The ratings also reflect the embedded interest deferral feature, which is at the sole discretion of the company's management, and unpaid interest is capitalized. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Floodwaters Ruin Hundreds of Crops ------------------------------------------------------ Dominican Today reports that the Tireo and Constanza rivers in central La Vega province crested their banks from the rains on Tuesday, flooding hundreds of plantations with various crops in highland towns. The floodwaters damaged cabbage, potato, broccoli, cauliflower, and other vegetable crops, according to Dominican Today. The hardest hit were the Tireo municipal district, the communities La Sabina, Colonia Japonesa, La Secadora, Los Cerros, Las Auyamas, El Valle, Palero and others, the report notes. 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: Thomas Cook Collapse Roils Tourism ------------------------------------------------------ Dominican Today reports that the collapse of British tour operator giant Thomas Cook has unleashed tension in the local hotel sector of the Dominican Republic, which has yet to determine the impact it will have on that industry, which is already being hit by a slump in American visitors. In addition to the tourists from England, Thomas Cook has associate tour operators in Germany, Holland, France, and other countries that are the main sources of European tourism, according to Dominican Today. "The bad news is that we are struggling with a US tourism problem, and Europe has been 25% of local tourism; so there is no doubt that at the moment there will be an impact, because it is an operator that also has airlines," said Joel Santos, former president of the National Association of Hotels and Tourism (Asonahores), which expects a worldwide recomposition in the sector, the report relays. 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). ============= J A M A I C A ============= JAMAICA: CDB President Calls For More Investment in MSMEs --------------------------------------------------------- RJR News reports that Dr. Warren Smith, President of the Caribbean Development Bank, is calling for more investment and effort to be put into strengthening the enabling environment if the micro, small and medium enterprises (MSME) sector is to fulfill its potential and drive economic growth and social development in the Caribbean. Dr. Smith made the call at the State of the Sector Conference hosted by the Barbados Small Business Association recently, according to RJR News. He added that MSMEs are the backbone of the private sector, accounting for on average 50% of GDP and creating 45% of jobs in the region, the report notes. He noted that the Caribbean had slid to 126 out of 190 in 2019 in the World Bank's Doing Business rankings, the report says. This was compared to 81 out of 181 countries in the 2009 survey, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. It is the fourth largest country in the Caribbean. Standard & Poor's credit rating for Jamaica stands at B with positive outlook. Moody's credit rating for Jamaica was last set at B3 with positive outlook. Fitch's credit rating for Jamaica was last reported at B+ with stable outlook. As reported in the Troubled Company Reporter-Latin America on June 27, 2019, RJR News said that Steven Gooden, Chief Executive Officer of NCB Capital Markets, is warning that the increasing liquidity in the Jamaican economy might result in heightened risk to the financial market if left unchecked. This, he said, is against the background of the local administration seeking to reduce the debt to GDP to 60% by the end of the 2025/26 fiscal year, which will see Government repaying more than J$600 billion which will get back into the system, according to RJR News. JAMAICA: Increases 2019/2020 Budget ----------------------------------- RJR News reports that Jamaica's 2019/2020 budget has increased by roughly J$50 billion. This was revealed in the first supplementary estimates of expenditure tabled in the House of Representatives, according to RJR News. More than $40 billion is for recent debt payments which will result in Jamaica saving billion annually, the report notes. The remaining $10 billion is mostly allocated to education, national security, community roads, and facilitating smooth operations at Tax Administration Jamaica, the report says. With the increase in spending, the Budget is now at $853 billion, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. It is the fourth largest country in the Caribbean. Standard & Poor's credit rating for Jamaica stands at B with positive outlook. Moody's credit rating for Jamaica was last set at B3 with positive outlook. Fitch's credit rating for Jamaica was last reported at B+ with stable outlook. As reported in the Troubled Company Reporter-Latin America on June 27, 2019, RJR News said that Steven Gooden, Chief Executive Officer of NCB Capital Markets, is warning that the increasing liquidity in the Jamaican economy might result in heightened risk to the financial market if left unchecked. This, he said, is against the background of the local administration seeking to reduce the debt to GDP to 60% by the end of the 2025/26 fiscal year, which will see Government repaying more than J$600 billion which will get back into the system, according to RJR News. ===================== P U E R T O R I C O ===================== KONA GRILL: Exclusivity Period Extended Until Dec. 31 ----------------------------------------------------- Judge Christopher Sontchi of the U.S. Bankruptcy Court for the District of Delaware extended the period during which only Kona Grill, Inc. and its affiliates can file a Chapter 11 plan to Dec. 31. The companies can solicit acceptances for the plan until March 2, 2020, according to the bankruptcy judge's order. 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 disclosed total assets of $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. Andrew Vara, acting U.S. trustee for Region 3, on May 16, 2019, appointed five creditors to serve on an official committee of unsecured creditors in the Chapter 11 cases. The Committee retained Kelley Drye & Warren LLP, as lead counsel; Bayard, P.A., as co-counsel; and Province, Inc., as financial advisor. ===================================== T R I N I D A D A N D T O B A G O ===================================== CL FIN'L: Stalemate Keeping Back Central Bank's Exit ---------------------------------------------------- Trinidad Express reports that the central bank has expressed "deep concern" at the continued delay in the sale of the traditional portfolios of Colonial Life Insurance Company Ltd (CLICO) and British American Trinidad (BAT) -- a matter that has been with Minister of Finance Colm Imbert for the six month period between the end of December 2018 and the end of June 2019. The comment was made in the Central Bank's most recent quarterly report on its control of CLICO and BAT, the main T&T insurance subsidiaries of the CL Financial group, which collapsed in January 2009, according to Trinidad Express. This led T&T's regulator of financial institutions to place the two insurance companies under its day-to-day control, in line with section 44D of the Central Bank Act, the report notes. About CL Financial CL Financial was one of the largest privately held conglomerate in Trinidad and Tobago. It was originally founded as an insurance company and has since expanded to be the holding company for a diverse group of companies and subsidiaries. CL Financial however experienced a liquidity crisis in 2009 that resulted in a "bail out" agreement by which the government of Trinidad and Tobago loaned the company funds ($7.3 billion as of December 2010) to maintain its ability to operate, and obtained a majority of seats on the company's board of directors. The companies to be bailed out were: CL Financial Ltd (CLF); Colonial Life Insurance Company Ltd (CLICO); Caribbean Money Market Brokers Ltd (CMMB); Clico Investment Bank (CIB) and British American Insurance Company (Trinidad) Ltd (BAICO). As reported in the Troubled Company Reporter-Latin America in July 2017, CL Financial Limited shareholders vowed to pay back a TT$15 billion (US$2.2 billion) debt to the Trinidad Government. PETROLEUM CO: 'Be Patient on Refinery,' OTWU Says ------------------------------------------------- Anna Ramdass at Trinidad Express reports that the Oilfields Workers' Trade Union (OWTU) is asking the people to have patience as it yesterday acknowledged there is "ongoing anxiety" surrounding the trade union's move to purchase the Petroleum Co. of Trinidad & Tobago (Petrotrin) refinery. "The OWTU fully appreciates the ongoing anxiety surrounding the Petrotrin refinery, an asset that belongs to the people of Trinidad and Tobago. That said, the OWTU asks the population to be patient and allow the process to take its course. This union has been at the forefront of insisting on transparency and exposing corruption at Petrotrin. T hese efforts have transcended administrations. We remain committed to transparently seeking out and doing what will serve the best interests of our T&T," the OWTU stated in a release obtained by the news agency. Finance Minister Colm Imbert announced that Patriotic Energies and Technologies Company Ltd, which is OWTU-registered, was Cabinet's choice with its upfront consideration of a US$700 million bid for what is now called the Guaracara Refining Company Ltd and Paria Fuel Trading Company Ltd, Trinidad Express notes. As reported in the Troubled Company Reporter-Latin America on Sept. 24, 2019, Darlisa Ghouralal at looptt.com reports that a company owned by the Oilfield Workers Trade Union (OWTU) has been named the preferred bidder to own and operate the Pointe-a-Pierre refinery, the oil refinery run by state owned oil company Petroleum Co. of Trinidad & Tobago (Petrotrin). Patriotic Energies and Technologies Co Ltd, a company wholly-owned by the OWTU, won the bid to purchase the Guaracara Refining Company Limited and Paria Fuel Trading Company Limited with a US$700 million offer, according to looptt.com. Finance Minister Colm Imbert made the announcement during the sitting of Parliament. Patriotic in its proposal offered upfront cash consideration of US$700 million, the report noted. The report said that it was the only company of the three companies shortlisted -- the other two named as Beowulf Energy and Klesch -- to do so. About Petrotrin State-owned Petroleum Co. of Trinidad & Tobago (Petrotrin) closed it oil refinery in November 2018. Prior to closure, Petrotrin underwent a corporate reorganization that started in the last quarter of 2018. The T&T government insisted that the reorganization was necessary to improve the company's efficiency. As a result of the reorganization, Petrorin's refining business was shut down and new entities were created: three operating subsidiaries (Heritage Petroleum Company Limited, Paria Fuel Trading Company and Guaracara Refining Company Limited), and the new holding company, TPH, to which the international bonds were transferred from Petrotrin. ********* 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 * * *