/raid1/www/Hosts/bankrupt/TCRLA_Public/191004.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, October 4, 2019, Vol. 20, No. 199

                           Headlines



A R G E N T I N A

ARGENTINA: Fernandez Reassures Creditors With 'No Haircut' Talk
ARGENTINA: IMF Aid for Country on Hold Ahead of Elections


B R A Z I L

BNDES PARTICIPACOES: Moody's Affirms Ba2 Local Curr. Issuer Rating
BNDES: Moody's Affirms Ba2 Local Currency Deposit Ratings
BRAZIL: To Bet Big on Biodiesel Made From Soy
ODEBRECHT SA: BNDES Bank Facing BRL14.6 Billion Losses
SUL AMERICA: Fitch Affirms 'BB-' LongTerm IDRs, Outlook Stable



D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: 11 Companies Mull IPOs With Trusts, Bonds


P U E R T O   R I C O

BOBALU INC: Case Summary & 10 Unsecured Creditors
ICH INTERMEDIATE: S&P Assigns 'B+' Long-Term ICR, Outlook Stable

                           - - - - -


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

ARGENTINA: Fernandez Reassures Creditors With 'No Haircut' Talk
---------------------------------------------------------------
Adam Jourdan and Rodrigo Campos at Reuters report that Argentina's
presidential front-runner Alberto Fernandez said that if elected
next month, he would aim to avoid haircuts on bond payments and
seek a moderate "Uruguay-style" debt restructuring, music to the
ears of the country's creditors.

Investors are closely watching Fernandez's comments on debt after
the South American nation was forced to announce plans to
renegotiate around $100 billion in bonds after a sharp market crash
in August pushed the country toward default, according to Reuters.

The Peronist candidate, who soundly beat market-friendly incumbent
President Mauricio Macri in an August primary, is the favorite to
win the Oct. 27 general election, the report notes.  How his
administration will handle the debt crisis is one of the key
questions for the country and its local and global backers, the
report relays.

"Hearing Fernandez refer to a Uruguay-style re-profiling is a very
positive thing," said Roger Horn, senior emerging market strategist
at SMBC Nikko Securities America in New York, adding that most
investors were braced for some sort of loss, the report discloses.

"It at least shows a market-friendly intention," Mr. Horn added.

The report discloses that Fernandez, in comments posted on Twitter,
said debt was Argentina's "biggest issue," but that the country -
in recession for much of the last year - would meet its obligations
in full if given time to revive growth.

"We never said we wouldn't pay or that there would be a haircut,"
he wrote.  He aimed criticism at Macri's administration for taking
on too much debt, he said.

"We will pay the debts by growing and exporting . . . . The only
way is to export. The other channel has been exhausted, which is to
borrow," he added.

In separate comments at an event in Cordoba, he said Argentina
should be able to replicate the model of neighboring Uruguay, which
successfully undertook voluntary debt renegotiations in 2003 and is
widely seen as a positive model, the report notes.

By contrast, in 2005 and 2010, under a prior Peronist government,
Argentina pushed bond holders to take a massive 'haircut' that hurt
its reputation on financial markets and sparked a multi-year battle
with 'holdout' creditors, the report relays.

                             Bonds Rally

Credit Suisse said in a note that Fernandez's comments were decent
news for the country's creditors.

"We think that Fernandez's remarks regarding paying debt without a
haircut, along with his track record, suggest that he could pursue
a moderate economic policy course if elected," the investment bank
said, the report discloses.

The country's over-the-counter bonds were up an average of 1% by
early afternoon local time, traders said, the report relays.

Argentina's century bond 040114HM5= traded up nearly one cent at
43.15 cents on the dollar according to MarketAxess data, while the
January 2028 benchmark 040114HQ6= rose more than a cent to trade at
41.15 cents, both on small trading volumes, the report relays.

Credit Suisse added, though, that how Fernandez would achieve his
goals of spurring growth while maintaining fiscal discipline under
a $57 billion credit facility struck with the International
Monetary Fund last year remained "unclear," the report discloses.

Marshall Stocker, a portfolio manager at U.S.-based investment
management firm Eaton Vance, was also skeptical, the report says.

"We are headed on a path to restructuring and the asset prices
reflect this," he said.  Fernandez plans to raise wages and fix
prices were "mutually exclusive" with aims to steady the currency
and inflation, he added.

"He can't do everything he and his team suggests they're going to
do. That's why it's so difficult to determine how extensive the
(debt) reprofiling will be," the report notes.

                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.

Standard & Poor's foreign and local currency sovereign credit
ratings for Argentina stands at CCC- with negative outlook. S&P
said, "The negative outlook reflects the prominent downside risks
to payment of debt on time and in full per our criteria over the
coming months amid very complex political, economic, and financial
market dynamics."  Moody's credit rating for Argentina was last set
at Caa2 from B2 with under review outlook. Fitch's credit rating
for Argentina was last reported at CC with n/a outlook. DBRS's
credit rating for Argentina is CC with under review outlook.  S&P,
Moody's and DBRS ratings were issued on Aug. 30, 2019; Fitch rating
on Sept. 3, 2019.

The next general elections in Argentina will be held on October 27,
2019, to elect the president of Argentina, members of the national
congress and governors of most provinces.  Incumbent President
Mauricio Macri is running for re-election and his top opponent is
Alberto Fernandez.  If no candidate reaches certain thresholds, a
runoff vote between the top two candidates will be held on Nov.
24.


ARGENTINA: IMF Aid for Country on Hold Ahead of Elections
---------------------------------------------------------
EFE News reports that the International Monetary Fund (IMF) placed
the September aid tranche for Argentina on hold ahead of the South
American country's presidential election.

The IMF's decision has added to the climate of uncertainty as
President Mauricio Macri, who is seeking re-election, prepares to
take on Peronist Alberto Fernandez in the Oct. 27 election,
according to EFE News.

                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.

Standard & Poor's foreign and local currency sovereign credit
ratings for Argentina stands at CCC- with negative outlook. S&P
said, "The negative outlook reflects the prominent downside risks
to payment of debt on time and in full per our criteria over the
coming months amid very complex political, economic, and financial
market dynamics."  Moody's credit rating for Argentina was last set
at Caa2 from B2 with under review outlook. Fitch's credit rating
for Argentina was last reported at CC with n/a outlook. DBRS's
credit rating for Argentina is CC with under review outlook.  S&P,
Moody's and DBRS ratings were issued on Aug. 30, 2019; Fitch rating
on Sept. 3, 2019.

The next general elections in Argentina will be held on October 27,
2019, to elect the president of Argentina, members of the national
congress and governors of most provinces.  Incumbent President
Mauricio Macri is running for re-election and his top opponent is
Alberto Fernandez.  If no candidate reaches certain thresholds, a
runoff vote between the top two candidates will be held on Nov.
24.




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B R A Z I L
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BNDES PARTICIPACOES: Moody's Affirms Ba2 Local Curr. Issuer Rating
------------------------------------------------------------------
Moody's America Latina Ltda. affirmed all ratings of BNDES
Participacoes S.A., a wholly-owned subsidiary of Banco Nacional de
Desenvolvimento Economico e Social -- BNDES. Moody's affirmed
BNDESPAR's Ba2 long-term local currency issuer rating and the
Aa1.br long-term Brazilian National Scale deposit rating (NSR). All
ratings have a stable outlook.

RATINGS RATIONALE

The affirmation of BNDESPAR's ratings reflects the affirmation of
the Ba2 ratings of its parent company, BNDES, which is its sole
shareholder.

BNDESPAR's main role is to support the Brazilian capital markets
through minority and temporary equity investments in the corporate
sector, as well as investments in fixed income instruments. The
agency's investment portfolio has sizable equity and securities
holdings from domestic corporations, both government owned and
privately held. BNDESPAR continues to gradually divest some of its
holdings as market conditions allow, reallocating its assets
according to BNDES' investment strategy. As of 1Q2019, BNDESPAR
registered a net income of BRL 8.6 billion compared to BRL 570 m
one year earlier, which resulted from extraordinary gains with the
sale of equity holdings.

WHAT COULD CHANGE THE RATING -- DOWN/UP

BNDESPAR is a 100%-owned subsidiary of BNDES, and, as such its
ratings are intertwined with the bank's ratings. Positive or
negative movement on BNDESPAR's ratings would trigger changes to
the development bank's ratings.

METHODOLOGY USED

The principal methodology used in these ratings was Banks published
in August 2018.

BNDESPAR is headquartered in Rio de Janeiro, Brazil, and reported
BRL 119.6 billion (USD 31 billion) in assets and BRL 104 billion
(USD 27 billion) in shareholders' equity as of March 31, 2019.

LIST OF AFFECTED RATINGS AND ASSESSMENTS

The following ratings and assessments of BNDESPAR were affirmed:

  - Long-term local issuer rating of Ba2, stable outlook

  - Long-term Brazilian national scale deposit rating (NSR) of
Aa1.br

Outlook Actions:

Outlook, Stable


BNDES: Moody's Affirms Ba2 Local Currency Deposit Ratings
---------------------------------------------------------
Moody's Investors Service affirmed all of Banco Nacional de
Desenvolvimento Economico e Social's (BNDES) ratings, following the
affirmation of the bank's ba2 baseline credit assessment. BNDES is
rated Ba2 and Not Prime for long- and short-term local currency
deposits and Ba3 and Not Prime for long- and short-term foreign
currency deposits. All ratings have a stable outlook.

RATINGS RATIONALE

The affirmation of BNDES' ba2 BCA and all its ratings reflects the
bank's role as a source of long-term project financing for
infrastructure in Brazil (Ba2 stable) and its increasing importance
in assisting the government's strategic pipeline of privatizations
and concessions. The introduction of a revised lending rate policy
in 2018 has materially reduced loan subsidies, supporting BNDES's
efforts to refocus on its core business and on becoming a
services-oriented bank. This move is leading to a credit positive
resizing of BNDES's balance sheet, which had grown substantially
over the past decade, and the use of its deep inhouse expertise in
project and long-term financing. In addition, BNDES has introduced
measures to enhance transparency and to strengthen its corporate
governance.

The loan portfolio has declined 31% from its 2015 peak of BRL700
billion to mid-2019, returning to levels of the mid 2012. A tepid
economic recovery and resulting weak demand for new investments,
combined with the reduction in subsidies, led to borrowers'
increasing interest in capital markets as an alternative funding
source for large companies. Over the past three years, the bank has
privileged loans to small and medium-sized enterprises, which
resulted in a lower, although still elevated loan concentration.

The ratings also reflect its view that BNDES' asset quality will
remain above market average over the next 12-18 months, reflecting
the bank's disciplined credit origination and gradually improving
economy. In June 2019, the ratio of problem loans to gross loans
declined to 0.4%, compared to the 1.7% in December 2018, partially
aided by the BRL 8 billion write off in H1 2019, mostly related to
a specific loan default. BNDES's loan loss reserves are sound and
account for more than 80% the volume of problem loans and
renegotiated loans.

As a result of its marked growth deceleration, there has been a
consistent improvement in the banks' capital base since 2016 and
its view is that this capital buffer will remain ample over the
next 12-18 months, following the plan to support sustainable and
disciplined credit growth over the coming years. In June 2019,
Moody's preferred ratio of tangible common equity (TCE) to risk
weighted assets (RWAs) peaked at 17.1% in June 2019, supported by
the contraction in the bank's loan portfolio and strong results in
the period.

BNDES's profitability has been solid, as evidenced by net interest
margins and net income to tangible banking assets averaging 1.8%
and 1.1%, respectively, in the past 10 years ending December 2018.
In part, results reflect the benefits of its investment portfolio
held at BNDES Participacoes S.A. - BNDESPAR (Ba2 stable), BNDES's
investment subsidiary, which, however, can add volatility to the
bank's performance. As an example, BNDES reported 3.5% net income
to tangible banking assets in 1H2019, derived from extraordinary
gains with the sale of equity holdings, which, if excluded, would
reduce net income to tangible banking assets to 1.7% in June 2019.
As a development bank with a mandate to foster development
opportunities in the social, environmental and impact banking
areas, Moody's expects BNDES to focus less on profitability metrics
and to place emphasis on key performance indicators as a catalyst
for development, instead. Moody's anticipates BNDES will continue
to gradually wind down holdings at BNDESPAR, which may boost
profitability, while allowing for a desired asset reallocation.

Under its current strategic priorities, the bank's profitability
will depend on its ability to adapt successfully to (i) an expected
reduction in size, with loans disbursements expected to be at 1% of
GDP from an average of 2.4% from 2009-15, (ii) streamlining
operating expenses and (ii) widening the scope of its operations to
include fee-based services, especially from project advisory and
investment banking activities on behalf of the government's
privatization program.

The bank's BCA also incorporates the comfortable liquidity cushion
and the bank's reliance on stable and long-term funding. Having
received BRL 438.5 billion from the National Treasury over the past
decade to boost its lending program, BNDES is committed to repay
these funds gradually, and plans to return additional BRL56 billion
by year end. To date, it has returned BRL 379 billion. Weaker
demand for new loans has allowed a faster repayment of resources to
the National Treasury, as the inflows of loan repayments surpassed
disbursements by BRL 44.5 billion in the H1 2019. Other relevant
long-term funding source is the constitutionally mandated Workers'
Assistance Fund (FAT Fund). In addition, BNDES anticipates it could
tap specialized funds to support its social and environment agenda.
Moody's expects that the bank's current funding structure will
remain adequate to support its lending strategy.

WHAT COULD CHANGE THE RATING -- DOWN/UP

BNDES' ratings are aligned to the Ba2 sovereign rating, which has a
stable outlook, reflecting the close interlinkage between BNDES'
standalone creditworthiness and the sovereign's credit position and
economic potential. As such, a positive move in the Brazil's
sovereign ratings could trigger an upward movement in BNDES's
ratings.

BNDES' ratings could be downgraded if the bank's financial
flexibility weakens, driven by a steady deterioration in its
asset-quality metrics, with a direct impact on its capital ratios.
The supported local-currency deposit and foreign-currency senior
unsecured ratings could face downward pressure if the sovereign
bond rating is downgraded or has its outlook changed to negative

METHODOLOGY USED

The principal methodology used in these ratings was Banks published
in August 2018.

BNDES is headquartered in Rio de Janeiro, Brazil, and reported BRL
799.3 billion (USD 207 billion) in assets and BRL 99.6 billion (USD
26 billion) in shareholders' equity as of June 30, 2019.

LIST OF AFFECTED RATINGS AND ASSESSMENTS

The following ratings and assessments of BNDES were affirmed:

  - Long-term global local currency deposit rating of Ba2, stable
outlook

  - Short-term global local currency deposit rating of Not Prime

  - Long-term global foreign currency deposit rating of Ba3, stable
outlook

  - Short-term global foreign currency deposit rating of Not Prime

  - Senior Unsecured Foreign debt of Ba2, stable outlook

  - Long-term global local currency counterparty risk rating of
Ba1

  - Short-term global local currency counterparty risk rating of
Not Prime

  - Long-term global foreign currency counterparty risk rating of
Ba1

  - Short-term global foreign currency counterparty risk rating of
Not Prime

  - Long-term Brazilian national scale deposit rating of Aa1.br

  - Short-term Brazilian national scale deposit rating of BR-1

  - Long-term Brazilian national scale counterparty risk rating of
Aaa.br

  - Short-term Brazilian national scale counterparty risk rating of
BR-1

  - Baseline credit assessment of ba2

  - Adjusted baseline credit assessment of ba2

  - Long-term counterparty risk assessment of Ba1(cr)

  - Short-term counterparty risk assessment of Not Prime(cr)

Outlook Actions:

Outlook, Stable


BRAZIL: To Bet Big on Biodiesel Made From Soy
---------------------------------------------
EFE News reports that Brazil will reopen its main biodiesel
production plant to harness the energy contained in soybeans, the
government of the northeastern state of Piaui said.

In a statement, the regional government said that the automated
plant -- located in the city of Floriano, some 1,350 kilometers
(840 miles) to the north of the country's capital, Brasilia -- will
be capable of producing 90 million liters (23.8 million gallons) of
biodiesel per year following an investment of BRL60 million ($14.4
million), according to EFE News.

                          About Brazil

The Federal Republic of Brazil is the largest country in Latin
America.  Sao Paulo is the most populated city and Brasilia is the
capital.  The federation is composed of the union of 26 states, the
Federal District and more than 5,000 municipalities.  Its
government is headed by President Jair Bolsonaro.  Among other
things, Brazil's government is hounded by corruption allegations.

Brazil has an advanced emerging economy.  Amid growth in recent
decades, the country entered an ongoing recession in 2014 amid a
political corruption scandal and nationwide protests.

Standard & Poor's credit rating for Brazil stands at BB- with
stable outlook (January 2018). Moody's credit rating for Brazil was
last set at Ba2 with stable outlook (April 2018). Fitch's credit
rating for Brazil was last reported at BB- with stable outlook
(February 2018). DBRS's credit rating for Brazil is BB (low) with
stable outlook (March 2018).


ODEBRECHT SA: BNDES Bank Facing BRL14.6 Billion Losses
------------------------------------------------------
Paula Arend Laier at Reuters reports that Brazilian state-run
development bank BNDES stated it is facing losses of up to BRL14.6
billion (US$3.5 billion) from loans made to conglomerate Odebrecht
SA, which has been in bankruptcy protection since June.

Of this total, BRL3.7 billion is related to federal government
losses on export financing credits, and BRL8.7 billion is loans to
companies under the Odebrecht Group umbrella, the BNDES said in a
statement on its website, according to Reuters.

BNDES loans to Odebrecht companies total BRL32.9 billion in nominal
terms, equivalent to an inflation-adjusted BRL51.3 billion.

Odebrecht filed for bankruptcy protection in June, aiming to
restructure 51 billion reais of debt in what would be one of Latin
America's largest-ever in-court debt restructurings, the report
notes.

                       About Odebrecht SA

Odebrecht S.A. -- www.odebrecht.com -- is a Brazilian conglomerate
consisting of diversified businesses in the fields of engineering,
construction, chemicals and petrochemicals. Odebrecht S.A. is a
holding company for Construtora Norberto Odebrecht S.A., the
biggest engineering and contracting company in Latin America, and
Braskem S.A., the largest petrochemicals producer in Latin America
and one of Brazil's five largest private-sector manufacturing
companies. Odebrecht controls Braskem, which by revenue is the
fourth largest petrochemical company in the Americas.

On June 17, 2019, Odebrecht filed for bankruptcy protection, aiming
to restructure BRL51 billion (US$13 billion) of debt.

The bankruptcy filing comes after years of struggles for Odebrecht,
the biggest of the Brazilian engineering groups caught in a
sweeping political corruption investigation that has rippled across
Latin America, Reuters relayed, as reported by The Troubled Company
Reporter - Latin America.

On August 28, 2019, the Troubled Company Reporter - Latin America,
citing The Wall Street Journal, reported that Odebrecht and its
affiliates filed for chapter 15 bankruptcy, seeking U.S.
recognition of the largest-ever bankruptcy in Latin America.
Odebrecht SA and several of its affiliates has filed for bankruptcy
protection in the U.S. Bankruptcy Court for the Southern District
of New York on Aug. 26.  The case is assigned to Hon. Stuart M.
Bernstein.


SUL AMERICA: Fitch Affirms 'BB-' LongTerm IDRs, Outlook Stable
--------------------------------------------------------------
Fitch Ratings affirmed Sul America S.A.'s Long-Term Local and
Foreign Currency Issuer Default Ratings at 'BB-' and Long-Term
National Rating at 'AA-(bra)'. The Rating Outlooks are Stable.

KEY RATING DRIVERS

The affirmation of SASA's IDRs reflects the company's favourable
business profile relative to other Brazilian insurers, very strong
financial performance and earnings, and adequate capitalization,
partially offset by the weaknesses in the Brazilian insurance
industry's profile and operating environment. The IDRs also capture
the company's significant exposure to Brazilian government
securities and other non-investment grade securities, which, in
turn, negatively affect Fitch's assessment of SASA's investment and
asset risk and capitalization and leverage credit factors.

The affirmation of SASA's national ratings reflects the insurer's
stable credit profile relative to other Brazilian entities rated on
the national scale.

SASA announced the sale of its saving bonds, auto and property and
casualty (P/C) portfolios. The closing of these transactions are
pending regulatory approvals and could take approximately one year
from the date of their announcement. As of June 2019, these three
businesses made up approximately 16% of SASA's total premiums.
Given their modest contribution to revenues and profitability,
Fitch does not expect significant changes in its assessment of
SASA's business and financial profiles.

SASA's business mix will be further concentrated on the health
segment under the new business model. At June 2019, 79% of total
premiums originated from the health segment. In 2018, it was the
third-largest insurer in this segment with a market share of 10%.
SASA has also has a small market share in the life and private
pension segments, which are dominated by the insurance arms of
large retail banks.

Fitch considers SASA's capitalization and leverage adequate, but
Fitch's overall assessment of capital adequacy also recognizes that
investment risks are not captured within the ratios. At June 2019,
the financial leverage ratio (FLR) stood at 23%, net premiums
written (NPW) to capital at 2.4x, and net leverage at 4.0x. In the
first half of 2019, the company's fixed-charge coverage ratio
remained comfortable at 11.2x. The company has not yet disclosed
details on its expected debt structure following the conclusion of
the sale of the three portfolios.

SASA's financial performance is very strong. The company's combined
and operating ratios were 97% and 94%, respectively, through the
first six months of 2019 (96% and 93%, respectively, in 2018).
Technical results are supported by stable loss ratios. SASA's
bottom-line profitability has also remained stable and strong
through the cycles. The company's ROAE was 15% for the first half
of 2019, unchanged from 2018. Fitch expects SASA's financial
performance and earnings to remain solid. However, the company will
be more concentrated in the health segment after the divestures are
completed.

SASA's exposure to non-investment grade securities is a key
negative rating driver. Brazilian government securities make up a
significant portion of its investment portfolio (75% at June 2019),
and represent approximately 100% of capital, which Fitch views as a
material concentration. Total non-investment grade securities and
other risky assets represented 133% of SASA's capital at June 2019
excluding the securities supporting unit-linked products.

SASA's liquidity is adequate, but Fitch's assessment is negatively
affected by the lower credit quality of the short-term securities.
At June 2019, liquid assets (which consider only 50% of
non-investment grade short-term securities) covered 68% of
technical reserves (excluding reserves for unearned premiums).

RATING SENSITIVITIES

RATING SENSITIVITIES - IDRs

Upgrade Sensitivities: SASA's IDRs would be positively affected by
an improvement in Brazil's industry profile and operating
environment, driven by a decline in country risk and a stronger
financial market development, which, in turn, would lead to an
improvement in Fitch's assessment of SASA's investment and asset
risk as well as capitalization and leverage credit factors.

Downgrade Sensitivities: SASA's IDRs would be negatively affected
by a deterioration in Brazil's industry profile and operating
environment, which would lead to a worsening of Fitch's assessment
of SASA's investment and asset risk as well as capitalization and
leverage credit factors. In addition, SASA's ratings could be
negatively affected by a sustained and material deterioration in
profitability and leverage, characterized by an ROAE below 8% and
FLR above 31%.

RATING SENSITIVITIES - National Ratings

The national ratings of SASA may be affected by a change in Fitch's
perception of the company's creditworthiness with respect to other
Brazilian entities rated on the national scale.

Fitch has affirmed the following ratings:

  -- Long-Term Foreign and Local Currency IDRs at 'BB-'; Outlook
Stable;

  -- Short-Term Foreign and Local Currency IDRs at 'B'.

  -- Long-Term National Rating at 'AA-(bra)'; Outlook Stable;

  -- Short-Term National Rating at 'F1+(bra)';

  -- Long-Term National Rating of senior unsecured debentures due
2019, 2021 and 2022 at 'A+(bra)'.




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

DOMINICAN REPUBLIC: 11 Companies Mull IPOs With Trusts, Bonds
-------------------------------------------------------------
Dominican Today reports that Securities superintendent Juan Ernesto
Jimenez recently revealed that some 11 companies explore their
entry to the stock market through trusts and corporate bonds, and
others that only await the update of the regulatory and tax
framework to launch their IPO.

He said that to date, there are five approved public IPOs for
trusts, but that there are currently legal and tax hurdled that
stop the issuance of corporate shares in the capitals market,
according to Dominican Today.

"There is currently a tax lock in relation to the issuance of
shares, one of a legal nature, which is the one that was introduced
in the tax reform of 2012 and which says that the one who buys a
share is a joint guarantor of the capital gain that could having
had and an administrative resolution that the DGII (Inernal Taxes)
has that says that the person who sells a share to a certain type
of investor has to pay 1% of the value of the income for possible
capital gain," Mr. Jimenez said.

                    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).




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P U E R T O   R I C O
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BOBALU INC: Case Summary & 10 Unsecured Creditors
-------------------------------------------------
Debtor: Bobalu, Inc.
        Villas Del Sol
        203 Calle Marbella
        Carolina, PR 00985

Business Description: Bobalu Inc. is a privately held company
                      headquartered in Carolina, Puerto Rico.
                      The Company previously sought bankruptcy
                      protection on Aug. 29, 2017 (Bankr. D. P.R.
                      Case No. 17-06083) and May 6, 2016 (Bankr.
                      D. P.R. Case No. 16-03662).

Chapter 11 Petition Date: October 1, 2019

Court: United States Bankruptcy Court
       District of Puerto Rico (Old San Juan)

Case No.: 19-05691

Judge: Hon. Mildred Caban Flores

Debtor's Counsel: Enrique M. Almeida Bernal, Esq.
                  Zelma Davila, Esq.
                  ALMEIDA & DAVILA, PSC
                  PO Box 191757
                  San Juan, PR 00919-1757
                  Tel: (787) 722-2500
                  Fax: (787) 777-1376
                  E-mail: adecfmail@gmail.com
                          info@almeidadavila.com

Estimated Assets: $0 to $50,000

Estimated Liabilities: $1 million to $10 million

The petition was signed by Lourdes Milagros Santiago Torres,
president.

A full-text copy of the petition containing, among other items, a
list of the Debtor's 10 unsecured creditors is available for free
at http://bankrupt.com/misc/prb19-05691.pdf


ICH INTERMEDIATE: S&P Assigns 'B+' Long-Term ICR, Outlook Stable
----------------------------------------------------------------
S&P Global Ratings said it assigned its 'B+' long-term issuer
credit rating on Puerto Rico-focused managed care company ICH
Intermediate Holdings II L.P. (d/b/a InnovaCare). The outlook is
stable.

S&P also assigned its 'B+' debt ratings to InnovaCare's proposed
senior secured first-lien credit facilities, which include an $80
million five-year revolver and a $550 million seven-year term loan.
InnovaCare's downstream holding companies, MMM Holdings LLC, ICH US
Intermediate Holdings II Inc., and ICH Flow-Through LLC will be
issuing the debt on a co-borrower basis.

InnovaCare's key credit strengths are its No. 1 Medicare Advantage
(MA) and No. 2 Medicaid market shares in Puerto Rico (PR);
interrelated competitive advantages, namely its high brand
awareness, consistently high MA Star quality ratings (4.5 for
2020), and well-established, integrated health plan/provider model;
good operating margins (projected run-rate return on revenues of
5%-5.5% in 2019-2021); and solid debt service and coverage metrics
(projected financial obligations-to-debt ratio of 2x-2.5x and
EBITDA fixed-charge coverage of 4x-5x in 2020). InnovaCare's
relatively new MA health plan and primary care business in Florida
are not significant earnings contributors yet, but they provide
potential growth and diversification benefits.

S&P said, "We forecast revenue of $3.3 billion-$3.5 billion in
2019, $3.5 billion-$3.7 billion in 2020, and $3.7 billion-$4
billion in 2021. We expect adjusted EBITDA and EBIT margins of
5.5%-6% and 5%-5.5%, respectively, in 2019-2021. We expect
financial leverage of 35%-40% by year-end 2019, 30%-35% by year-end
2020, and 25%-30% by year-end 2021; financial obligations-to-EBITDA
of 2.5x-3x in 2019, 2x-2.5x in 2020, and 1.5x-2x in 2021; and
EBITDA fixed-charge coverage of 3.5x-4x in 2019, 4x-5x in 2020, and
5x-6x in 2021. We expect regulated capital to remain 'BBB'
deficient in 2019-2021."

S&P could lower its rating by one notch in 2020 based on the
following scenarios:

-- Adjusted EBIT margin deteriorates on a sustained basis,
reflecting competitive position weakening and/or
higher-than-expected medical or operating costs.

-- The 'BBB' capital deficiency deteriorates further due to lower
retained regulated capital and/or higher debt (driving excess debt
funded double-leverage).

-- Financial leverage and financial obligations-to-EBITDA ratio
deteriorate and stay above 40% and 4x, respectively, and EBITDA
fixed-charge coverage deteriorates and stays below 4x due to
weaker-than-expected earnings, slower-than-expected debt repayment,
sponsor dividends, and/or debt-funded acquisitions.

S&P is unlikely to raise its rating in 2020. However, it could
raise the rating by one notch based on the following scenarios:

-- InnovaCare's business risk profile improves significantly based
on revenue/earnings growth, greater diversification, higher
run-rate adjusted EBIT margin, and better PR-related operating
conditions (including Medicaid funding stability).

-- Capital redundancy improves to 'BBB' on a sustained basis due
to higher retained regulated capital and/or lower debt (driving
less excess debt funded double-leverage).



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

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Chapman, Editors.

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

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