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       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

          Tuesday, November 19, 2019, Vol. 20, No. 231

                           Headlines



A R G E N T I N A

ARGENTINA: President-Elect Says He Won't Rush Debt Deal


B A H A M A S

BAHAMAS: Damages & Other Impacts by Dorian Estimated at $3.4BB


B E R M U D A

FLOATEL INTERNATIONAL: S&P Lowers ICR to 'CCC', Outlook Negative
SAGICOR FINANCIAL: S&P Raises ICR to 'BB', Outlook Positive


B O L I V I A

BOLIVIA: Morales Says He Fears Civil War in Country


B R A Z I L

BRAZIL: Lula Accuses Bolsonaro of Destroying Brazil


C A Y M A N   I S L A N D S

UNITED INSURANCE: A.M. Best Cuts FSR to B(Fair) Then Withdraws It


C H I L E

CHILE: Social Upheaval Undermines Reputation for Stability


J A M A I C A

SEPROD LIMITED: Cites Benefits of Closing Sugar Factory


M E X I C O

BRASKEM IDESA: Fitch Publishes BB LT IDRs, Outlook Stable
BRASKEM IDESA: S&P Assigns Prelim 'BB-' ICR, Outlook Stable


P U E R T O   R I C O

CDT DE SAN SEBASTIAN: Case Summary & 20 Top Unsecured Creditors


S T .   L U C I A

ST. LUCIA: LT Growth Continues to be Impeded by High Public Debt

                           - - - - -


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

ARGENTINA: President-Elect Says He Won't Rush Debt Deal
-------------------------------------------------------
Amy Stillman at Bloomberg News reports that Argentine
President-elect Alberto Fernandez says he won't rush the debt
agreement process to ensure he gets a good deal for the country.

"We don't want to sign anything and then regret it," he said in an
interview for Pagina 12, according to Bloomberg News. "We don't
want to run after the timelines for the bondholders, we want to run
after the timeline that's best for Argentines," he added.

Bloomberg News notes that he said he listens to Guillermo Nielsen,
the debt negotiator for Argentina in 2005, on debt, but that he's
looking to make the final decisions himself.  Nielsen will be "very
close" to Fernandez, but he declined to elaborate on the role he
will have, Bloomberg News relates.

Investors fear that Fernandez, who was elected on a wave of popular
discontent with fiscal austerity and takes office Dec. 10, doesn't
have a clear strategy to save the country from financial ruin, and
his leadership could lead to a debt default, Bloomberg News
discloses.

Fernandez said that the oil, mining and agricultural industries
should make more of an effort on taxes, and he warned of
oligopolistic tendencies in some sectors such as beer and milk,
Bloomberg News relates.  "In the dairy sector, almost 100% is in
the hands of two. In the beer sector, everything is in the hands of
three operators," he added.

Fernandez said he will send a package of bills to congress next
month. He previously said he'd review the government's spending
plans for 2020 and suggested his predecessor's draft budget was
faulty, without providing details, Bloomberg News notes.

As reported in the Troubled Company Reporter-Latin America on Nov.
13, 2019, Reuters said markets are watching closely for any signals
from Fernandez on future economic policies or how he will approach
negotiations for the restructuring of some $100 billion in
sovereign debt.

                          About Argentina

Argentina is a country located mostly in the southern half of South
America.  It's capital is Buenos Aires. Alberto Angel Fernandez is
the President-elect of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.

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.

Back in July 2014, Argentina defaulted on some of its debt, after
expiration of a 30-day grace period on a US$539 million interest
payment.  The country hasn't been able to access international
credit markets since its US$95 billion default 13 years ago.  On
March 30, 2016, Argentina's Congress passed a bill that will
allow the government to repay holders of debt that the South
American  country defaulted on in 2001, including a group of
litigating hedge  funds that won judgments in a New York court. The
bill passed by a
vote of 54-16.



=============
B A H A M A S
=============

BAHAMAS: Damages & Other Impacts by Dorian Estimated at $3.4BB
--------------------------------------------------------------
A new report estimates the total cost of the impacts and effects of
Hurricane Dorian on The Bahamas at $3.4 billion, with hundreds dead
or missing and impacts on the economy that will last for years.

The estimate comes out to over a quarter of the country's GDP--or
the equivalent of the US losing the combined economic outputs of
California, Texas and Florida.  The magnitude of the losses
requires a new development approach to achieve climate and disaster
resilience in areas that range from location of settlements to
redesigning infrastructure and strengthening environmental
protection, according to the report, Assessment of the Effects and
Impacts of Hurricane Dorian in the Bahamas.

The number of confirmed deaths caused by Hurricane Dorian is 67,
with 282 persons still missing as of 18 October 2019. An additional
29,472 persons were affected by the hurricane by damages to their
homes and assets.

Between Sept. 1 and 3, Hurricane Dorian struck Grand Bahama and
Abaco with punishing winds and storm surges, with the island of New
Providence also suffering some impacts. Inadequate construction and
infrastructure located in vulnerable areas exacerbated the storm's
impacts.

"It is important that those directly affected by the disaster feel
the presence and solidarity of the government throughout the
difficult process ahead," said Daniela Carrera-Marquis, the
representative of the Inter-American Development Bank (IDB).
"Reconstruction efforts will last many years and will require a
well-coordinated participation of public and private sectors, civil
society and the international community."

The government of The Bahamas asked the IDB to assess the impacts
of Hurricane Dorian. As part of a long-standing partnership, the
IDB teamed up with the United Nations Economic Commission for Latin
America and the Caribbean (ECLAC) for technical assistance with the
valuation. The taskforce was complemented by the Pan-American
Health Organization (PAHO).

"Hurricane Dorian left a trail of destruction to houses, essential
infrastructure and entire ecosystems that will require major
investments," said Omar Bello, Coordinator for the Sustainable
Development & Disaster Unit at ECLAC and a lead author of the
report. "The economy and livelihoods will be impacted for years to
come from the temporary absence of damaged assets, especially those
of tourism and fisheries."

The Damage and Loss Assessment (DaLA) team of external experts,
ECLAC, IDB and PAHO staff started in early October the complex task
of collecting relevant baseline and post-disaster data to assess
the effects and impacts of the disaster. The results are divided
into damage, losses and additional costs. Damage is a monetary
estimation of the value of the physical assets partially or totally
destroyed in each sector. Losses are a monetary estimation goods
that go unproduced and services that go unprovided during a period
running from the time the disaster occurs until full recovery and
reconstruction. Additional costs are outlays required to produce
goods and provide services that represent additional spending by
the public and private sectors.

The $3.4 billion impact was divided as 72 percent in damage, 21
percent in losses and 7 percent in additional costs with the
private sector absorbing almost 90 percent of total losses. Abaco
suffered 87 percent of the losses and 76 per cent of the damage.



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B E R M U D A
=============

FLOATEL INTERNATIONAL: S&P Lowers ICR to 'CCC', Outlook Negative
----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Floatel International Ltd. to 'CCC' from 'B-'.

The risk of a distressed exchange has increased amid a very
challenging market environment.  Following last year's refinancing,
debt maturities are relatively long-dated, with the bank vessel
facility and RCF maturing in 2023, and the bonds being due in 2024.
Floatel generated positive free operating cash flow in first-half
2019 and liquidity sources remain well above cash uses over the
coming 12 months. However, we anticipate that the company will not
cover interest payments and scheduled amortization out of operating
cash flows in the years to come. A very uncertain outlook, where no
material work is expected in the coming years, notably in the North
Sea, and a high share of idled rigs, both for Floatel and its
competitors, should lead to increasing cash burn. S&P said, "With
those factors combined, the debt level appears to be high in
relation to potential operating cash generation, given reported
debt was $832 million at the end second-quarter 2019, and we
estimate EBITDA to be only about $30 million-$35 million in 2020.
Additional work could inflate this figure, but the historically low
firm contract backlog (which was only $56 million at the end of
June 2019) and negligible tendering activity does not indicate that
stronger scenarios are likely."

A merger with Prosafe would likely be a credit positive but U.K.
and Norwegian authorities seem to be saying no.  Prosafe is the
largest operator, but with a more heterogeneous fleet (some older
ones but also some newly built ones) than Floatel. Together, they
represent virtually the whole market in this niche, hence the
reluctance of authorities to give a green light to the merger
because no competition would likely lead to higher costs for
customers. The merged entity could, however, accelerate the
balancing of the market, notably through scrapping, while
benefiting from stronger pricing power and synergies to reduce
costs. S&P does not include a merger in itsr base-case scenario,
given the current stance in regulatory approvals.

S&P said, "The negative outlook reflects our view that rapidly
shrinking EBITDA and very weak market prospects could lead to
financial distress in the coming 12 months. Despite a liquidity
position that protects from a liquidity crisis in the near term,
amortization and interest expenses of about $80 million in 2020,
surpass our base-case EBITDA by about $50 million, which would
result in the liquidity position rapidly deteriorating. We also
anticipate debt-to-EBITDA to remain well above 10x in 2020.

"We could lower the rating on Floatel by one notch or more if the
likelihood of a default or distressed exchange becomes more likely
within the next six months. We would lower the rating to 'SD'
(selective default) if the company engages in a distressed exchange
offer to its lenders or it buy back bonds trading at distressed
levels; or to 'D' (default) in a case of a companywide default.

"We could revise the outlook to stable or even raise the rating by
a notch if the merger with Prosafe is completed and we assess the
group as having a sufficiently strong backlog and balance sheet to
go through continued challenging market conditions."


SAGICOR FINANCIAL: S&P Raises ICR to 'BB', Outlook Positive
-----------------------------------------------------------
S&P Global Ratings raised to 'BB' from 'BB-' its issuer credit
ratings on Bermuda-based NOHC, Sagicor Financial Corporation
Limited (SFCL) and on its Cayman Islands-based financing vehicle,
Sagicor Finance (2015) Limited (SF15). S&P also raised its
issue-level rating on SF15's $320 million seven-year senior
unsecured notes due 2022 to 'BB' from 'BB-'. The issuer credit
ratings have a positive outlook.

Sagicor group has been able to consistently generate and accumulate
earnings in recent years thanks to conservative underwriting
practices and its sound diversification of income sources. Sagicor
underwrites insurance and banking products in a wide range of
countries in the Caribbean and in different states in the U.S.
These factors have been driving satisfactory earnings and allowing
the group to consistently build up capital. S&P said, "We expect
reported equity to grow about 15% this year. We believe Sagicor's
solid results and growing capital base will continue strengthening
its capacity to manage debt service. Additionally, the increasing
contribution of insurance premiums underwritten in the U.S. (about
44% of total gross premiums written [GPW] as of June 2019) along
with improving economic conditions in Jamaica, have resulted in
lower overall industry and country risks at the group level. As a
result of these developments, we revised the group credit profile
(GCP) upwards to 'bbb-' from 'bb+'."

S&P's ratings on SFCL and SF15 are two notches below Sagicor's GCP
because of the group's operating subsidiaries' structural
subordination to policyholder obligations. The issue-level rating
on SF15's $320 million senior unsecured notes due in 2022 is the
same as that on its issuing entity SF15 because of the notes'
seniority. SFCL is the ultimate parent at the top of the Sagicor
group's structure and SF15's purpose is to provide financing to the
group.




=============
B O L I V I A
=============

BOLIVIA: Morales Says He Fears Civil War in Country
---------------------------------------------------
Former President Evo Morales said in an interview with EFE News
that he feared that a civil war might break out in Bolivia and
called on his countrymen to end the clashes in the streets.

"I'm very afraid. Under our administration, we united countryside
and city, east and west, professionals and non-professionals. Now,
the violent groups have come," Morales said in response to a
question about the chances of a civil war in his country according
to EFE News.

The 60-year-old Morales, who was granted political asylum in Mexico
on Nov. 12, said he had "firsthand information" that "organized
paramilitaries" and "paid gang members and drug addicts" working
for the Bolivian right were committing acts of violence in the
streets, the report notes.

Since the disputed Oct. 20 presidential elections, which set off
the political crisis in Bolivia, at least 20 people have been
killed and more than 500 others injured in clashes between
supporters and opponents of Morales, the Andean nation's first
indigenous president, the report relates.

Morales, who resigned on Nov. 10, said the death toll could be
higher, claiming that 23 people died "from gunshots."

"I'm calling on my people, from the countryside and the city, poor,
the humble, and those who exercise economic power, to say that we
cannot be fighting. I want them to stop these confrontations,"
Morales said during the interview at EFE's Mexico City bureau.

The former president, who was first elected in 2006, said he
regretted "having provided equipment to the armed forces," adding
that the military had just "one helicopter" when he first took
office and were now using their weapons "against the people," the
report relays.

Morales alleged that certain powerful groups were paying workers
between 200 and 300 pesos to "do violence" in a country where the
average salary is around 120 pesos ($17), the report discloses.

"These construction workers have preferred to put up barricades and
engage in (acts of) aggression instead of earning 120 Bolivian
(pesos) working with dignity in construction," the former president
said, the report notes.

Morales said professors at public and private universities were
urging students to "block roads all day" and giving them grades for
assignments in courses that had been suspended, the report says.

Morales said a new presidential election would take place and the
results of the vote held last month would be annulled in response
to the findings of the Organization of American States (OAS), which
released a report recommending that a new presidential election be
held due to the irregularities in the Oct. 20 vote that he won, the
report relays.

Later in the day, Morales was forced to resign amid pressure from
the political opposition, military and police, the report recalls.

Morales was seeking a fourth term in office and his mere
participation in this year's election was seen as illegitimate by
the opposition, the report notes.

Morales secured a third term in office in 2014 after winning a
Constitutional Court decision a year earlier, the report recalls.

That tribunal had ruled that because his initial term began three
years prior to the enactment of the new constitution it did not
count toward term limits restricting presidents to two five-year
periods in office, the report notes.

It then appeared Morales would be barred from running for yet
another term this year after voters narrowly rejected his plans to
do so in a 2016 referendum, but the Constitutional Court in late
2017 abolished term limits for all elected officials on the grounds
that they violate candidates' human rights, the report discloses.

Morales told EFE that he wanted his supporters to engage in a
"national dialogue" with the transitional government to avoid
violence.

"The position that is growing is the 'out with the dictatorship and
let democracy live' one. My great wish is that there be a dialogue
with mediators," Morales said, the report relays.

The former president said his participation in the "national
dialogue" would be essential to "pacify Bolivia" since he has "much
authority to speak" with the disaffected groups, the report says.

Morales said he would welcome mediation by Spain and the European
Union to end the political crisis in Bolivia, the report notes.

The report relates that the former president, however, said he had
not been in touch with Spanish or European diplomats since
resigning, but he said Spain and certain EU members could play a
positive role in resolving the crisis.

Morales said the EU could play an important role in Bolivia because
"dialogue is important," the report notes.

"Not just the European Union, but also the Catholic Church and the
United Nations," the former president, leader of the Movement
Toward Socialism (MAS) party, said, the report discloses.

"Before, yes, we were in touch with the embassy of Spain and we
inaugurated a technical institute at the Uyuni Salt Flats," Morales
said, referring to the assistance provided since 2017 by the AECID,
the Spanish international aid agency, the report relays.

The AECID created a $4.4 million fund via a debt swap to help
launch three technical institutes in Bolivia, the report says.

"It would be so good if Spain or (former Spanish Prime Minister
Jose Luis Rodriguez) Zapatero, an expert in mediation, (former
Uruguayan President) Pepe Mujica or other governments would join
the mediation (process) for pacification," Morales told EFE.

The former Bolivian president, however, criticized "some members of
the European Union that took a position" in the crisis, a reference
to Britain, which joined the United States in supporting the new
government in the Andean nation, the report notes.

"I didn't like it, but if they play a role (as mediators), (then
they are) welcome," Morales said, the report relays.

The former president took a shot at Washington, saying that he
always valued the assistance provided by Spain and the EU because
they offered aid without conditions and not demanding anything in
return, while "the aid offered by the United States . . . always
has conditions," the report says.

The Mexican government offered Morales political asylum because the
former president feared for his life if he stayed in Bolivia, the
report adds.

As reported in the Troubled Company Reporter-Latin America on June
24, 2019, Fitch Ratings has affirmed Bolivia's Long-Term Foreign
Currency Issuer Default Rating at 'BB-' and revised its Outlook to
Negative from Stable.




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

BRAZIL: Lula Accuses Bolsonaro of Destroying Brazil
---------------------------------------------------
EFE News reports that former Brazilian President Luiz Inacio Lula
da Silva harshly criticized the government of President Jair
Bolsonaro, accusing him of "destroying the country" and "fomenting
hatred" during a rally in northeastern Brazil, his political
stronghold, nine days after being released from prison.

Lula, who after a decision by the Supreme Court recovered his
freedom after 580 days behind bars, was given a thunderous ovation
by the thousands of his supporters -- many wearing t-shirts with
his image -- who had gathered starting at midday on the Our Lady of
Carmo Square, the central plaza of Recife, capital of Pernambuco
state, to participate in the "Lula Is Free Festival," according to
EFE News.

As reported in the Troubled Company Reporter-Latin America on Nov.
18, 2019, Fitch Ratings affirmed Brazil's Long-Term Foreign
Currency Issuer Default Rating at 'BB-'. The Rating Outlook is
Stable.




===========================
C A Y M A N   I S L A N D S
===========================

UNITED INSURANCE: A.M. Best Cuts FSR to B(Fair) Then Withdraws It
-----------------------------------------------------------------
AM Best has removed from under review with negative implications
and downgraded the Financial Strength Rating to B (Fair) from A-
(Excellent) and the Long-Term Issuer Credit Ratings to "bb" from
"a-" of United Insurance Company (UIC) (Cayman Islands) and its
subsidiary, United Re (Europe) S.A. (United Re) (Luxembourg). The
outlook assigned to these Credit Ratings (ratings) is negative.
Concurrently, AM Best has withdrawn the ratings of UIC and United
Re at the company's request to no longer participate in AM Best's
interactive rating process.

AM Best placed the ratings under review with negative implications
in August 2019, following UIC's disclosure that as part of an
affiliated transaction, it provided a cash deposit that materially
weakened its balance sheet strength and liquidity. The cash deposit
was repaid to UIC in October 2019.

The ratings reflect UIC's balance sheet strength, which AM Best
categorizes as weak, as well as its adequate operating performance,
neutral business profile and marginal enterprise risk management.

UIC's risk-adjusted capitalization has been impacted negatively by
significant growth, operating losses and an increase in investment
risk. Additionally, in 2019 the group received an affiliated
surplus note, which has limited its risk-adjusted capital and
liquidity position. The group's balance sheet strength at year-end
2019 is projected to improve due to the monetization of an
affiliated recoverable, maintenance of lower risk invested assets,
a stabilization in new business growth and a significant
improvement in operating performance.

The group's operating performance over the past five years has been
volatile, and recently, the group incurred increased losses and
related expenses on its new third-party business. Investment
returns have been variable over the past five years and have
trended lower.

UIC's risk management framework and management's capabilities
relative to its risk profile have been strained. UIC recently has
taken actions to limit its underwriting losses and investment risk,
by non-renewing underperforming business and liquidating its main
investment fund. AM Best remains concerned with the level of
material affiliated transactions and lack of timely communication
of such transactions.  



=========
C H I L E
=========

CHILE: Social Upheaval Undermines Reputation for Stability
----------------------------------------------------------
Eduardo Thomson and Sydney Maki at Bloomberg News report that Chile
is on the brink of losing its hard-won reputation as the safest bet
in Latin America following the biggest social upheaval in a
generation.

One month into a wave of mass protests, Chile's credit-default
swaps are near those of the region's other most stable countries,
according to Bloomberg News. The gap between the spread on its
five-year CDS and Peru's has narrowed 21 basis points to two basis
points, Bloomberg News notes.  The gap with Panama has disappeared
over the same period, with the Central American nation now 0.6
basis point below Chile, Bloomberg News discloses.

Almost 40 years of steady growth has turned Chile into the
wealthiest country in South America, Bloomberg News says.  It has
little public debt, a large sovereign wealth fund and low, stable
inflation, all of which has help build its reputation as a shining
star in Latin America, Bloomberg News relates.  But not anymore.

"Chile has earned that developed-market-like EM title, though I do
have a feeling that it is starting to turn," said Aaron Gifford, an
emerging-market sovereign analyst at T Rowe Price Associates Inc.
in Baltimore, Maryland, Bloomberg News relates.  "Chile's an
emerging market--that's what it is."

Chile has been convulsed by protests and riots for almost four
weeks, with people demanding better pensions, healthcare and
education, as well as a new constitution, Bloomberg News notes.
The police have appeared to lose control at times, with almost a
third of supermarkets looted, more than $2 billion of damage and
thousands of shops closed, Bloomberg News says.

The disturbances may cost Chile 300,000 jobs, Finance Minister
Ignancio Briones said, Bloomberg News notes.

Still, the pillars that underpin the economy, including the giant
copper industry, remain intact and Chile's CDS remain far below
those in Mexico or Brazil, Bloomberg News relates.

"It would take a lot more to really make a dent in terms of
fundamentals," Alvaro Vivanco, head of Latin America strategy and
macro analysis at NatWest Markets Securities Inc., said in an
interview with Bloomberg News.  "It's an extremely well anchored
economy. That's not going to change," he added.

Yet, investors are beginning to worry about the government's
response to the crisis, Bloomberg News relates.  President
Sebastian Pinera has pledged an extra $1.2 billion in spending,
including a new minimum income and an increase in state-paid
pensions, Bloomberg News notes.

He has also agreed to ditch Chile's constitution, which enshrines
the free-market policies put in place under the dictatorship of
Augusto Pinochet, Bloomberg News says.  The prospect of a new
constitution sent the peso to record lows last week, Bloomberg News
notes.

"It is unquestionable that due to recent events the gap between the
risk of Chile against other countries has closed," Credicorp
Capital economists including Tomás Sanhueza said in a note to
clients, Bloomberg News relays.  The CDS could rise further "once
the social-related reforms are defined and the economic
implications of these changes are known," it added.



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J A M A I C A
=============

SEPROD LIMITED: Cites Benefits of Closing Sugar Factory
-------------------------------------------------------
RJR News reports that Seprod has cited the decision to close the
Golden Grove sugar factory in July as one that will have a positive
impact on the company's return on equity and cash flow.

It said the closure followed ten years of operational losses from
sugar manufacturing, according to RJR News.

Seprod's financial results for the January to September period show
losses from the discontinued operation amounted to J$455 million,
up from $275 million during the corresponding period last year, the
report notes.

Seprod, a food manufacturing and distribution company, now in its
ninth decade, describes itself as the largest food company in the
English speaking Caribbean, with nine subsidiaries in Jamaica,
Trinidad & Tobago, Dominica Republic, Guyana, Barbados and Cayman
Islands.



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

BRASKEM IDESA: Fitch Publishes BB LT IDRs, Outlook Stable
---------------------------------------------------------
Fitch Ratings published the 'BB' Long-Term Foreign and Local
Currency Issuer Default Ratings of Braskem Idesa, S. A. P. I. Fitch
has also published a 'BB' rating on Braskem Idesa's bechmark size
senior secured notes due 2029. The secured notes will rank pari
passu to Braskem Idesa's existing project finance debt and will
receive the same collateral package of the company's existing debt.
The Rating Outlook is Stable.

Braskem Idesa's ratings reflect its strong competitive position
within the global petrochemical sector underpinned by its access to
competitive raw materials, which supports its high margins, large
business scale and strong market share in the Mexican polyethylene
(PE) market. Fitch's ratings incorporate a successful refinancing
of part of Braskem Idesa's project finance debt, which should
improve the company's financial flexibility.

The company's ratings are constrained by uncertainties surrounding
its long-term ethane supply agreement with Petroleos Mexicanos
(Pemex; BB+/Negative), which have provided the company with
low-cost feedstock. Other rating constraints include its single
asset operation, short track record of operations, moderately high
leverage and limited financial flexibility until it pays down its
full project finance debt (USD2.6 billion). The cyclical nature of
the petrochemical industry, which results in cash flow volatility,
and the commodity nature of Braskem Idesa's products are additional
negative rating considerations.

Fitch's analysis incorporates an expectation that Braskem Idesa
will import ethane from the U.S. market in response to the lower
than expected supply from Pemex. In its base case scenario, Fitch
projects Pemex will supply on average 70% of the contracted volumes
and that the company will continue to receive payments of
liquidated damages from Pemex to compensate Braskem Idesa for the
shortfall. This scenario, in combination with weaker petrochemical
spreads during 2019, will reduce Braskem Idesa's profitability. The
company's net debt to EBITDA ratio will be around 6.0x during 2019
but should decline to below 4.0x by mid-2021.

KEY RATING DRIVERS

Cyclical Commodity Business: The inherently cyclical nature of the
commodity chemicals sector makes Braskem Idesa exposed to feedstock
and end-product price volatility, driven by prevailing market
conditions and demand/supply drivers. Fitch expects a deterioration
in the PE-ethane spread during 2019 and 2020 considering new PE
capacity coming online and uncertainties on global recession/trade
war, with average spreads of between USD750-USD850 per ton (down
from USD950-1,000 per ton during 2017-2018). Fitch expects spreads
to start a more meaningful recovery during the latter half of 2021
as the markets become more balanced.

Good Business Position: Braskem Idesa is a single asset complex
polyethylene producer with a relatively large business scale
(1.05kton) compared to global peers in the industry; its production
facility is modern and uses industry leading technology. The
company has a market share of around 34% in Mexico in the segments
of high-density polyethylene (HDPE) and low-density polyethylene
(LDPE). Its competition is primarily imports of PE. The company's
PE products serves a broad and diverse range of end markets,
including packaging, food and beverage, industrials, construction
and others.

Low Cost Position: Braskem Idesa benefits from its access to
natural gas based ethylene feedstock, which has historically
maintained a cost advantage over naphta based ethylene. The company
has a 20-year supply agreement to purchase ethane from state-owned
Pemex at a discount to market reference. This feedstock price
advantage in combination with Braskem Idesa's large scale and
modern facilities has resulted in EBITDA margins of 55% and 61% in
2017 and 2018. These margins compare favorably to margins of its
peers of between 20% and 25%. Fitch's base case scenario projects
EBITDA margins gravitating toward 48%-50% during 2019 and 2020 due
to weaker spreads and lower supply from Pemex (70%-75% of the
contracted volumes).

Exposure Risk to Pemex: Pemex's lack of investments has resulted in
a decline in the production of ethane and natural gas. Braskem
Idesa and Pemex's ethane contract considers 66k bpd of supply of
ethane, which the company has not been able to deliver: it is
currently able to only provide about 50k bpd. Fitch's base case
includes around USD2 million-USD3 million of capex related to
Braskem Idesa's fast track project to import ethane from the U.S.
that should start operations during late November 2019 and should
allow the company to maintain a utilization rate of around 90% in
the medium term. The construction of a new import terminal for
ethane is not incorporated into the analysis. Potential impact on
the rating from this development will depend on terms and financing
conditions.

Spreads Deterioration to Pressure Leverage: The deterioration of
spreads and lower utilization rate during 2019 should lead to an
increase in Braskem Idesa's net leverage to 6.0x in 2019. This
compares to 4.7x and 4.0x during 2017 and 2018, respectively.
Leverage should decline to below 4.0x by 2021, as a result of
ongoing positive FCF generation and increased EBITDA resulting from
higher utilization rate and volumes. Braskem Idesa's FCF during
2019 and 2020 should be around MXN3.8 billion and MXN5.1 billion,
considering capex of MXN0.5 billion in 2019 and in 2020 and MXN0.8
billion of distribution to sponsors conditioned to the completion
of the bond issuance. Fitch does not incorporate any distribution
to sponsors during 2019. Given its state of the art facilities,
Braskem Idesa's maintenance capex should be low until 2021, when it
has a scheduled maintenance stoppage (MXN 1.6 billion of capex).

Financial Flexibility to Improve: Braskem Idesa has just completed
a renegotiation of its project finance debt terms. The company was
not in compliance with physical and financial completion covenants
stated in the project finance loan agreement, and since December
2016, its non-current portion of the debt was reclassified to
current liabilities. Through the issuance of the current proposed
secured bond issuance, the company is renegotiating a portion of
this project finance debt in order to gradually migrate to a
corporate finance structure. This is more appropriate for a
fully-operational company and it should improve financial
flexibility in the medium term.

The bonds will share the collateral on a pari passu basis with all
of Braskem Idesa's existing bank debt (project finance), including
100% of Braskem Idesa's shares, real property, bank accounts and
certain contractual rights and interests. Terms under the current
project finance loan do not allow distributions to shareholders
until financial completion is achieved, which is expected to occur
during 2020. The bonds indenture foresees that once the project
finance loan is fully liquidated the bonds will become senior
unsecured.

Moderate Rating Linkage: Braskem Idesa and its controlling
shareholder Braskem S.A (75% equity interests, IDR BBB-/Stable)
have some operational and functional ties within the production and
sale of PE. Braskem Idesa is strategically important for Braskem as
it lowers its feedstock risk and increases its access to other
markets. Legal ties are weak, as the parent does not guarantee the
debt obligations of the subsidiary. Braskem Idesa's project finance
debt has a strong set of covenants that limits financial
flexibility and dividends distributions. As of Dec. 31, 2018,
Braskem Idesa reported MXN42 billion of debt under subordinated
shareholder loans, being MXN31 billion with Braskem and MXN11
billion with Grupo IDESA.

DERIVATION SUMMARY

Given its access to low cost feedstock, Braskem Idesa's EBITDA
margin is well positioned relative to PE producers peers such as
Braskem S.A. (BBB-/Stable) and Nova Chemicals (BBB-/Negative) or
more diversified player such as Dow Chemical Company (BBB/Stable)
in terms of operating margins. It also positively compares with its
Latin American chemical peers such as Alpek S.A (BBB-/Stable) or
Orbia Advance Corporation, S.A.B de C.V. (BBB-/Stable).
Nevertheless, Braskem Idesa has a higher exposure to
supply/contract risks compared to its peers. It also has a weaker
position in terms of exposure to a single asset and product and
geographic diversification.

Braskem Idesa's net leverage ratios should remain above most of its
peers until mid-2022, when its ratios should decline to around
2.5x. The average leverage for the Latin American investment grade
chemicals peers are around 2.5x, while Dow's net leverage is around
2.0x and Nova's is 3.5x.

KEY ASSUMPTIONS

Fitch's key standalone assumptions within its rating case for the
issuer include:

  -- 70% of ethane being supplied by Pemex and increasing imports
levels to support utilization rate around 92% by 2020;

  -- Braskem Idesa spreads around USD750-USD850 per ton during
2019-2020;

  -- Average capex of MXN0.5 billion in the next three years;

  -- No shareholder loans distributions in 2019. Contingent on
completion of the bond issuance, Fitch expects around MXN0.8
billion of shareholder loan distribution in 2019. New distribution
only in 2021 of around MXN2.7 billion;

  -- USD1 billion bond issuance to refinance part of the project
finance and increase financial flexibility.

RATING SENSITIVITIES

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

Braskem Idesa's ratings are unlikely to be upgraded in the medium
term given its still high leverage ratios and until feedstock
supply is normalized leading to lower exposure to uncertainties on
the contract with Pemex.

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

  -- Changes in the supply agreement with Pemex or a more
shareholder friendly policy that leads net leverage to remain above
4.5x by 2021;

  -- Deterioration of its PE's market share in Mexico.

LIQUIDITY

Bond Issuance to improve Financial Flexibility: Braskem Idesa had
MXN5.2 billion of cash and marketable securities and MXN49.7
billion of total debt at June 30, 2019. The company's total debt
relates to the project finance debt and as of June 30 2019, it was
all classified at short term due to the default on the physical and
financial completion covenants. Recently, the company was able to
negotiate a waiver with its lenders and now its debt will be
reallocated to long term. In a normalized scenario, the project
finance has a long-term amortization schedule with an average of
MXN6 billion of annual payments and final maturity at 2029. As
planned, Braskem Idesa's cash flow generation is expected to be
sufficient to cover its project finance debt amortization schedule.
With the proposed bond issuance, the company will prepay part of
its project finance debt, lengthening its debt amortization
schedule. As a result, there should be an improvement in debt
service coverage.

FULL LIST OF RATING ACTIONS

Fitch has published the following ratings:

Braskem Idesa

  -- Long-Term Foreign Currency IDR 'BB'; Outlook Stable;

  -- Long-Term Local Currency IDR 'BB'; Outlook Stable;

  -- Benchmarket senior secured debt issuance 'BB' due 2029.

BRASKEM IDESA: S&P Assigns Prelim 'BB-' ICR, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings assigned its 'BB-' preliminary issuer credit
rating on Mexico-based polyethylene producer Braskem Idesa.

S&P said, "At the same time, we assigned our 'BB-' preliminary
issue-level rating on the company's proposed issuance of secured
notes up to $1.0 billion, with a '3' recovery rating. The '3'
recovery rating indicates our expectation for meaningful recovery
(50%-90%).

"The stable outlook on Braskem Idesa reflects our expectation that
its operations will continue to improve. We also expect an increase
in its production of polyethylene as projected, and expect it will
supply Mexico's demand for this product according to the market
estimates.

"Our 'BB-' rating on Braskem Idesa reflects its focus on the
production of one single product (polyethylene, with a wide range
of uses), limiting its scale, its high dependence on ethane as its
sole feedstock, and its high debt level. Our rating also reflects
its short track record, because it started operating in mid-2016.
In our view, this constraints are partially offset by its position
as the largest polyethylene producer in Mexico, its vertical
integration, its EBITDA margins that are above its peers due to a
low cost raw material, and its diversified customer base."




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

CDT DE SAN SEBASTIAN: Case Summary & 20 Top Unsecured Creditors
---------------------------------------------------------------
Debtor: CDT De San Sebastian Inc.
           d/b/a Centro De Medicina & Cirugia Ambulatoria
           De San Sebastian
        PO Box 1663
        San Sebastian, PR 00685

Business Description: CDT De San Sebastian Inc., a tax-exempt
                      entity (as described in 26 U.S.C. Section
                      501), operates an outpatient care center
                      in Puerto, Rico.

Chapter 11 Petition Date: November 13, 2019

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

Case No.: 19-06636

Judge: Hon. Brian K. Tester

Debtor's Counsel: Jose Ramon Cintron, Esq.
                  LAW OFFICE OF JOSE R CINTRON ESQ
                  605 Calle Condado, Suite 602
                  San Juan, PR 00907
                  Tel: 787 725-4027
                  Fax: 787-725-1709
                  E-mail: jrcintron@prtc.net

Estimated Assets: $1 million to $10 million

Estimated Liabilities: $1 million to $10 million

The petition was signed by Eduardo Rodriguez MD, president.

A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at:

      http://bankrupt.com/misc/prb19-06636_creditors.pdf

A full-text copy of the petition is available for free at:

              http://bankrupt.com/misc/prb19-06636.pdf



=================
S T .   L U C I A
=================

ST. LUCIA: LT Growth Continues to be Impeded by High Public Debt
----------------------------------------------------------------
An IMF mission visited St. Lucia during October 29-November 8,
2019, for the annual Article IV consultation discussions on
economic developments and macroeconomic policies. At the end of the
mission, Mr. Ding, mission chief for St. Lucia, issued the
following statement:

St. Lucia's near-term growth prospects are favorable, supported by
large infrastructure investments and robust tourist inflows.
However, longer-term growth continues to be impeded by high public
debt, lingering vulnerabilities in the financial system, and
structural impediments to private investment. To enhance economic
resilience in an increasingly precarious external environment,
near-term policies should focus on rebuilding fiscal space and
addressing risks to financial stability. Concerted efforts are also
needed to mobilize climate financing and unlock potential growth
through supply-side reforms.

Robust tourism inflows have sustained economic activity despite
delays in public infrastructure investment. Growth picked up in
2019 with record growth in tourism activities more than offsetting
a contraction in construction. Preliminary information also shows a
further improvement in the current account. Unemployment has
declined somewhat but remains high at 18 percent. Inflation remains
subdued.

Near-term growth prospects are favorable, albeit with downside
risks. The commencement of large public infrastructure projects by
the year-end is expected to substantially boost growth in 2020-22.
The major upgrade of the international airport and the road network
will help address capacity constraints and has the potential to
catalyze a more durable expansion of the tourism sector and related
activities. Downside risks to the outlook include a
deeper-than-expected slowdown in major source markets for tourism,
energy price shocks, disruptions to global financial markets, and
loss of correspondent bank relationships. St. Lucia's high
vulnerability to natural disasters constitutes an ever-present risk
to both growth and the fiscal outlook.

Fiscal policies should be geared toward rebuilding policy space and
ensuring public debt converges to the ECCU target of 60 percent of
GDP by 2030. Prudent fiscal policies in recent years, supported by
revenues from the citizenship-by-investment program (CIP), have
helped to stabilize public debt as a share of GDP. The primary
fiscal position is projected to remain broadly balanced in 2019,
notwithstanding additional salary expenditures and retroactive wage
increases from the recently concluded wage negotiations. However,
the still elevated level of public debt, currently at 65 percent of
GDP, leaves the government with little fiscal space to react to
shocks. The debt-financed infrastructure investments, despite being
on concessional terms with long-run repayment largely covered by
new revenue measures, will move public debt further away from the
regional target in the absence of fiscal consolidation efforts. The
need to invest in climate resilience and the uncertainty over
future CIP revenues pose additional challenges to public finances.

The government's near-term focus should be on revenue -- enhancing
measures and investing to build resilience against climate related
shocks. The fiscal measures that have been announced -- including
reforms to the personal income tax and the residential property
tax-are expected to be budget neutral in the near term. This
underscores the need to restrain current spending (particularly the
public wage bill) and to mobilize additional revenues from the
hotel accommodation fee, introducing a carbon tax, and reducing the
scope of VAT exemptions. Since some of these measures will likely
be regressive, they should be introduced in parallel with targeted
transfers that offset the impact of these measures on poor
households. Concerted efforts are also needed to mobilize donor
grants to fund investments in climate resilience. Any
over-performance of the CIP, or of other revenue sources, should be
directed toward financing a self-insurance fund -- that would be
invested in liquid, highly rated, international assets -- to
bolster the economy's resilience against natural disasters.

The government's commitment to adopting a fiscal rule to guide
fiscal policy over the medium-term is welcome. To be effective, the
fiscal rule should encompass a comprehensive definition of fiscal
activities, including the fiscal costs of natural disasters and the
lumpy expenditure associated with infrastructure investment. The
fiscal rule should be part of a broader fiscal responsibility
framework that embeds appropriate institutional and governance
arrangements (including oversight and accountability) that ensure
both the appropriate degree of flexibility as well as
enforceability of the fiscal rule. The fiscal rule will need to be
carefully calibrated to strike the balance between credibly meeting
the debt target and providing space for much-needed resilience
building.

To support private sector investment, measures are needed to
address inefficiencies in financial intermediation. The prolonged
contraction of bank credit to the private sector remains a
significant headwind to the domestic economy. This in part reflects
banks' steady efforts to repair their balance sheets, which should
continue. However, there is scope to improve credit market
efficiency by completing legislative initiatives to modernize
foreclosure and insolvency legislation thereby facilitating
recovery of impaired loans and collateral, adopting the harmonized
legislation needed to establish a regional credit bureau and
registry, and taking steps to allow for the greater use of movable
property as loan collateral.

Emerging financial sector risks warrant a more assertive approach
to regulation and supervision. The contraction in domestic lending
and excess liquidity have led local banks to increasingly allocate
their asset portfolio to overseas debt securities. This has
supported bank profitability but may also expose the sector to
losses if global financial market conditions deteriorate and risk
premia rise. The rapid expansion of credit union transactions and
membership has increased the sector's macro-financial significance.
Loan delinquencies by credit unions are high and some institutions
have relatively limited prudential buffers which increases the
sector's vulnerability to shocks. The swift adoption of the
Harmonized Co-operative Societies Act, combined with a
strengthening of supervisory oversight of the non-bank financial
sector, remain key policy priorities. In addition, continued
efforts are needed to satisfy international taxation and AML/CFT
standards.

St. Lucia is committed to further enhancing resilience to climate
change and natural disasters. The government's infrastructure
programs include a commendable focus on building resilience to
natural disasters. Progress has also been made in implementing
recommendations of the 2018 Climate Change Policy Assessment
including updating the national and sectoral adaptation plans,
preparing a climate financing strategy, and mobilizing resources
from the global climate funds. To address the remaining
institutional and financing gaps in the climate adaptation and
mitigation strategy, efforts are needed in the active costing of
climate projects, improving public financial management of climate
financing and outlays, and mobilizing private investment in
mitigation and adaptation.

Decisive and targeted reforms are needed to address supply-side
impediments to long-term growth. Enhancing labor market performance
and productivity will require a better alignment of the education
system with labor market needs. There is also scope to improve the
business environment especially by enhancing delivery of online
government services and access to credit, reduce electricity costs
by making greater use of renewable energy, further diversify the
economy toward higher-value exports, and increase local content in
the tourism supply chain.


                           *********


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

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