/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/191223.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, December 23, 2019, Vol. 20, No. 255 Headlines A N T I G U A A N D B A R B U D A LIAT: Chairman Announces Retirement B R A Z I L B3 SA: Moody's Affirms Ba1 Global LC Sr. Unsec. Debt Rating B3 SA: Moody's Affirms Ba1 LT FC Sr. Unsec. Debt Rating BRF SA: Moody's Affirms Ba2 CFR, Outlook Stable C A Y M A N I S L A N D S AUTOPISTAS DEL NORDESTE: Fitch Affirms BB- Rating on $108.8MM Notes CHINA FISHERY: Kasowitz Benson Represents Senior Noteholders C O L O M B I A MONIQUIRA: Looks to Tourism to Revive Economy D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Commerce Lags in Tech. Advances in Delivery M E X I C O HIDALGO STATE: Moody's Ups Issuer Rating to Ba1, Outlook Stable P E R U CAMPOSOL HOLDING: Moody's Withdraws B1 CFR due to Inadequate Info X X X X X X X X [*] BOND PRICING: For the Week December 16 to December 20, 2019 - - - - - ===================================== A N T I G U A A N D B A R B U D A ===================================== LIAT: Chairman Announces Retirement ----------------------------------- RJR News reports that LIAT Ltd., formerly known as Leeward Islands Air Transport or LIAT, disclosed in a statement that, after 16 years in the position, Dr. Jean Holder is retiring. He informed shareholders at LIAT's Annual General Meeting held in Antigua, that he would not be available for nomination as a Director of LIAT's Board for the next term, according to RJR News. About LIAT LIAT Ltd., formerly known as Leeward Islands Air Transport or nLIAT, is an airline headquartered on the grounds of V.C. Bird International Airport in Antigua. It operates high-frequency inter-island scheduled services serving 15 destinations in the Caribbean. The airline's main base is VC Bird International Airport, Antigua and Barbuda, with bases at Grantley Adams International Airport, Barbados and Piarco International Airport, Trinidad and Tobago. The airline is owned by seven Caribbean governments, with three being the major shareholders: Barbados, Antigua & Barbuda and St. Vincent and the Grenadines along with Dominica(94.7 %); other Caribbean governments, private shareholders and employees (5.3%). In the last few years, LIAT has been challenged with financial difficulties, often needing additional funding as the airline dealt with the high cost of operations. In November 2016, the Barbados government defended LIAT's operations, even as opposition legislators called for a cessation of the business. In early 2015, LIAT offered early retirement packages to employees in efforts to downsize. In 2014, LIAT knew it had to deal with unprofitable routes to make operations viable. In the third quarter of 2013, the airline's top management was shaken, with news Chief Executive Officer Captain Ian Brunton's sudden resignation. LIAT's current chief executive officer is Julie Reifer-Jones, chairman is Jean Holder, and chief financial officer is Rojer Inglis. Dr. Ralph Gonsalves, prime minister of St. Vincent & the Grenadines, serves as chairman of LIAT shareholders. =========== B R A Z I L =========== B3 SA: Moody's Affirms Ba1 Global LC Sr. Unsec. Debt Rating ----------------------------------------------------------- Moody's America Latina affirmed B3 S.A. -- Brasil, Bolsa, Balcao's Ba1 global local currency senior unsecured debt rating and Aaa.br Brazilian national scale senior unsecured debt rating assigned to B3's outstanding local currency debentures This action follows a related press release made by Moody's Investors Service that it had affirmed all ratings assigned to B3 S.A. -- Brasil, Bolsa, Balcao. The following ratings assigned to B3 S.A. -- Brasil, Bolsa, Balcao were affirmed: - Local currency senior unsecured debt rating of Ba1; - Brazilian long-term national scale senior unsecured debt rating of Aaa.br RATINGS RATIONALE B3's global scale and national scale long term unsecured debenture rating of Ba1 and Aaa.br respectively, stem from B3's long term senior unsecured and issuer ratings of Ba1. B3 currently has BRL 1.2 billion of local currency debentures outstanding. B3's long term senior unsecured and issuer ratings reflect Moody's unchanged assessment of the company's creditworthiness, which incorporates the benefits to creditors from its increasing earnings, high pretax margins and cash flow generation, which will continue to be strong over the next 12 -18 months, supported by the positive operating environment. Our assessment also takes into consideration B3's rising but manageable leverage and the company's increased dividend payout targets which will be maintained in 2020. B3's ratings are positioned one notch above Brazil's Ba2 sovereign rating, reflecting its strong linkages with the Brazilian sovereign. Following on from 2018`s record year, B3 reported revenue growth of 23% and pre-tax income of BRL 3.1 billion (US$ 732 million) in the twelve months to 3Q19, an increase of over 50% versus a year earlier, illustrating its increased scale. Pre-tax margins were 49.3%, up by almost 840 basis points from a year earlier. Moody's expects B3 to continue to post strong financial results in 2020 as Brazil`s low interest rate environment will continue to shift investor risk appetite toward equity and other riskier investments, while capital market new issuances will continue to be strong, following on from 2019`s record levels of equity issuance. Moody`s also said that B3 offers services for which it has no competition, particularly in cash equities trading and post trading, and that its business model enables it to generate increased revenue during periods of market volatility, when interest rate and currency derivative volumes rise. Moody's said it expects that B3's leverage, as measured by Moody's-adjusted debt/EBITDA, will be maintained at 1.5x, as aligned with B3's leverage target. B3's actual Moody's-adjusted debt leverage ratio was 1.3x as of 3Q19, but this is expected to worsen following incremental debt issuance. B3 has increased its dividend payout ratio to a range of 120%-150% of 2019 net income, including share repurchases and cash dividend payouts, versus its previous range of 70%-80% in 2018. Despite relatively higher debt leverage and a higher new dividend payout ratio, B3's cash flow coverage ratio will continue to remain strong, defined as retained cash flow after dividends minus capex, as a percentage of debt. B3 reported cash flow coverage of 48.2 % in 2018 and as of 3Q19 the ratio was 43.2%. In addition, Moody`s expects B3`s interest coverage to improve, even as more debt is issued, because a combination of higher EBITDA and refinancing at lower interest rates will more than offset the effect of higher debt. Moody's does not have any particular governance concerns for B3, and does not apply any corporate behavior adjustment in its standalone assessment of B3's creditworthiness. WHAT COULD CHANGE THE RATINGS UP/DOWN The national scale debenture ratings are already at the highest level on the national scale for Brazil. A downgrade in B3's global and national scale ratings could be driven by a deterioration in the company's financial profile, which, in turn, could be triggered by a decrease in its operating margin that substantially reduces the company's debt-service capacity and leads its leverage to increase significantly. Negative pressure on the ratings could also arise from a deterioration in the company's risk management capabilities and execution effectiveness. A decline in Brazil's creditworthiness could also result in B3's ratings being downgraded. The principal methodology used in these ratings was Banks Methodology published in November 2019. B3 SA: Moody's Affirms Ba1 LT FC Sr. Unsec. Debt Rating ------------------------------------------------------- Moody's Investors Service has today affirmed all of B3 S.A. - Brasil, Bolsa, Balcao's (B3) ratings including its local currency issuer rating of Ba1 and its long term foreign currency senior unsecured debt rating of Ba1. The outlook on B3's ratings remains stable. The ratings affirmed were: - Long term local currency issuer rating of Ba1 - Long term foreign senior unsecured debt rating of Ba1 The outlook is Stable RATINGS RATIONALE The affirmation of B3's ratings reflects Moody's unchanged assessment of the company's creditworthiness, which incorporates the benefits to creditors from its increasing earnings, high pretax margins and cash flow generation, which will continue to be strong over the next 12 -18 months, supported by the favorable operating environment. Our assessment also takes into consideration B3's rising but manageable leverage and the company's increased dividend payout targets which will be maintained in 2020. B3's ratings are positioned one notch above Government of Brazil's Ba2 sovereign rating, reflecting its strong linkages with the Brazilian sovereign. B3 has a fully vertically integrated business model as the preeminent financial market infrastructure provider in Brazil and earns revenues from a variety of sources including trading, clearing and depository services in cash equities and derivatives, registration and custody of over-the counter derivatives, fixed-income securities, car liens and real estate financing registration, as well as data services. Brazil's record low interest rate environment has bolstered many of B3's businesses, leading to record levels of equity and derivative trading volumes, as well as growth in corporate debt issuances, outstanding credit and in vehicle financing. Together with B3`s significant operating leverage that followed the completion of the merger between BM&F Bovespa S.A. and Cetip S.A. in 2017, the favorable operating environment has resulted in B3 reporting very strong and improved financial performance. Following on from 2018`s record year, B3 reported revenue growth of 23% and pre-tax income of BRL 3.1 billion (USD 732 million) in the twelve months to 3Q19, an increase of over 50% versus a year earlier, illustrating its increased scale. Pre-tax margins were 49.3%, up by almost 840 basis points from a year earlier. Moody's expects B3 to continue to post strong financial results in 2020 as Brazil`s low interest rate environment will continue to shift investor risk appetite toward equity and other riskier investments, while capital market new issuances will continue to be strong, following on from 2019`s record levels of equity offerings. Moody`s also said that B3 offers services for which it has no competition, particularly in cash equities trading and post trading, and that its business model enables it to generate increased revenue during periods of market volatility, when interest rate and currency derivative volumes rise. Moody's said it expects that B3's leverage, as measured by Moody's-adjusted debt/EBITDA, will be maintained at 1.5x, as aligned with B3's leverage target for 2020. B3's actual Moody's-adjusted debt leverage ratio was 1.3x as of 3Q19, but this is expected to worsen following incremental debt issuance. B3 has increased its dividend payout ratio to a range of 120%-150% of 2019 net income, including share repurchases and cash dividend payouts, versus its previous range of 70%-80% in 2018. Despite relatively higher debt leverage and a higher dividend payout ratio, B3's cash flow coverage ratio will remain strong, defined as retained cash flow after dividends minus capex, as a percentage of debt. B3 reported cash flow coverage of 48.2% in 2018 and as of 3Q19 the ratio was 43.2%. In addition, Moody`s expects B3`s interest coverage to improve, even as more debt is issued, because a combination of higher EBITDA and refinancing at lower interest rates will more than offset the effect of higher debt. B3 operates Brazil's large and systemically important central counterparty clearing house (CCP), as well as the central securities depositary (CSD), and acts between counterparties for financial securities traded in Brazil's financial markets, becoming the buyer to every seller and the seller to every buyer. The efficient functioning and risk management of these operations is the backbone of B3's effectiveness as a financial market infrastructure provider, and is key to B3's intrinsic creditworthiness. B3s ratings are positioned one notch above the Government of Brazil's (Ba2 stable) rating. The one-notch differential from the sovereign rating reflects B3's dominant market position, diverse revenue base and resilient financial performance through Brazil`s recession and tepid economic recovery. B3 has a strong credit linkage to Brazilian sovereign risk through its collateral holdings of government securities and the geographical concentration of its operations. Its cash position and the majority of its settlement funds that safeguard it from counterparty default are invested in Brazilian government bonds. The stable outlook on B3`s ratings reflects the rating agency`s expectations that B3's financial performance will remain strong. The outlook is in line with the stable outlook on Brazil's sovereign rating. Moody's does not have any particular governance concerns for B3 and does not apply any corporate behavior adjustment in its standalone assessment of B3's creditworthiness. WHAT COULD CHANGE THE RATINGS UP/DOWN B3's issuer and debt ratings of Ba1 currently do not face upward pressure because they are positioned one notch above Brazil's sovereign bond rating. In the event Brazil's creditworthiness improved and the sovereign rating is upgraded, that could lead to an upgrade of B3's Ba1 ratings. A decline in Brazil's creditworthiness could result in B3's ratings being downgraded. A downgrade in B3`s ratings could also be driven by a significant and unexpected deterioration in the company's financial profile, which, in turn, could be triggered by a decrease in its operating margin that substantially reduces the company's debt-service capacity and leads its leverage to increase significantly. Negative pressure on the ratings could also arise from a deterioration in the company's risk management capabilities and execution effectiveness. The methodologies used in these ratings were Securities Industry Service Providers Methodology published in November 2019, and Clearing Houses Methodology published in November 2019. BRF SA: Moody's Affirms Ba2 CFR, Outlook Stable ----------------------------------------------- Moody's Investors Service affirmed BRF S.A.'s Ba2 corporate family rating and its senior unsecured ratings. The outlook changed to stable from negative. Rating actions: Issuer: BRF S.A. Corporate Family Rating: affirmed at Ba2 $109 million GTD global notes due 2022: affirmed at Ba2 EUR325 million global notes due 2022: affirmed at Ba2 $346 million global notes due 2023: affirmed at Ba2 $518 million global notes due 2024: affirmed at Ba2 $750 million GTD global notes due 2030: affirmed at Ba2 RATINGS RATIONALE The change of BRF's outlook to stable from negative reflects the improvements observed in credit metrics in the past few quarters, as a result of the reorganization that has taken place within the company, including changes in the management, operations, logistics and commercial strategies, combined with asset divestitures and liability management initiatives. These internal changes, coupled with some improvement observed in BRF's main markets and the spread of the African Swine Fever (ASF) in China and other countries in Asia/Eastern Europe, have supported a recovery in BRF operating performance, with positive free cash flow generation in 2019. BRF's Ba2 ratings reflect its strong business profile and leadership in both processed foods in Brazil and global poultry markets. After a strong deterioration in operational and financial performance between 2016-2018, the company is in a clear path of recovery, which Moody's expects will continue through 2020, reflecting the rationalization measures already implemented and an improvement in the domestic market in Brazil, allowing BRF to focus on a more profitable mix, along with a moderation of grain prices. Besides, the Halal segment, which accounts for about 20% of the company's total sales, will continue to post healthy margins, supported by a higher-margin mix and lower costs. International markets will continue to benefit, reflecting more directly the effect of the African Swine Fever (ASF) animal protein prices. Offsetting these positive attributes are the low geographic diversity in terms of production footprint and heavy concentration in one protein (poultry), and strong exposure to grain prices and currency volatility, because around 45% of the company's sales come from international markets and about 58% of total debt is denominated in foreign currency. The stable outlook reflects its expectations that BRF will present steady credit metrics in the next 12 to 18 months, and maintain an adequate liquidity profile, managing capital spending and dividend distribution in a prudent manner, avoiding compromising its leverage and cash flow. An upgrade would be considered in case of a continuous improvement in operating performance, with BRF showing a resilient performance regardless the underlying macroeconomic environment and consumption patterns in key markets. An upward rating movement would require BRF to maintain a strong liquidity position, and improve credit metrics, with leverage, measured by total adjusted debt/EBITDA sustained below 3x and cash flow from operations (CFO)/Debt improving towards at least 15%. Moreover, an upward rating movement would also be subject to its relative position to Brazil's sovereign ratings. A downgrade could result from a deterioration in BRF's operating performance and liquidity, with weaker cash flow limiting the company's ability to deleverage. Quantitatively, a downgrade could also occur if total adjusted debt/EBITDA remains above 4x on a sustained basis. A deterioration in the Government of Brazil's (Ba2 stable) credit quality could hurt BRF's ratings. The principal methodology used in these ratings was Protein and Agriculture published in May 2019. BRF S.A. is one of the largest food conglomerates globally and posted consolidated net revenue of BRL32.5 billion ($8.4 billion, considering average exchange rate) for the twelve months ending September 2019. Processed food and food services, which typically generate higher and less volatile margins than the chilled and frozen protein export business, represented about 45.5% of net revenue. The company operates 37 plants and 47 distribution centers in the world, exports to more than 150 countries and has a leading position in global poultry exports. =========================== C A Y M A N I S L A N D S =========================== AUTOPISTAS DEL NORDESTE: Fitch Affirms BB- Rating on $108.8MM Notes ------------------------------------------------------------------- Fitch Ratings affirmed Autopistas del Nordeste (Cayman) Ltd's notes at 'BB-'. The Rating Outlook is Stable. The notes are due in 2026 and have an outstanding balance of USD108.8 million. RATING RATIONALE The rating is supported by the minimum revenue guarantee (MRG) paid by the Dominican Republic's government, which largely mitigates the project's volume and price risks, as toll revenues remain persistently insufficient to cover operational costs and debt service. MRG payment delays have slightly decreased, but remain significant at about 130 days. This risk is mitigated by AdN's adequate liquidity to meet debt service in the short to medium term. The rating also reflects a flexible debt structure with principal payments that can be deferred for two years if needed and robust liquidity in the form of the typical reserve accounts and additional resources retained by the stockholders within the project to face its operational and financial obligations should delays in receipt of the MRG continue or increase significantly. Considering the MRG cash inflows, Fitch's rating case yields a solid debt service coverage profile with minimum and average debt service coverage ratio (DSCR) of 1.31x in 2023 and 1.34x, respectively, considered strong for the rating category, in light of the transaction's reduced exposure to volume risk. AdN's rating is constrained by Fitch's assessment of the credit quality of the Minister of Public Works and Communications' MRG grantor obligation, which is commensurate with that of the Dominican Republic's sovereign (BB-/Stable). Fitch believes the delays in the payment of the MRG are not signs of the sovereign's incapacity or unwillingness to pay but rather a strategic use of the financial flexibility offered by the project's liquidity position and a reflection of the complex administrative process needed to make budget appropriations. If such a buffer was not available, Fitch believes the government would try and reduce the payment cycle. The presence of Multilateral Investment Guarantee Agency (MIGA) insurance may also incentivize the government to treat the MRG as a senior expenditure. KEY RATING DRIVERS Adequate Governmental Support: The government of the Dominican Republic pledged under the concession agreement in 2001 an MRG that protects noteholders from the risk of insufficient traffic over the life of the notes. The government has continued to honor this pledge, and Fitch expects required payments to be made over the life of the notes. The concession agreement also calls for the government to post a SBLC under certain circumstances to provide additional support to the transaction. Financial Guarantee: The notes benefit from a partial political risk guarantee provided by the MIGA, a member of the World Bank Group. A failure by the government to honor the MRG would be covered under this guarantee; however, disbursements can be delayed, and internal liquidity is essential to the project's capacity to service debt. Fitch believes the MIGA guarantee provides additional incentives for the government to honor its obligations under the concession. Low Volume Touristic Asset (Revenue Risk - Volume: Weaker): The toll road connects Santo Domingo and the northern province of Samana. It provides an efficient route but has competing free alternatives. Moreover, despite robust gains in recent years, actual traffic remains far below initial projections requiring substantial payments via the MRG. This dependence on external revenues is expected to continue in the near to intermediate term. Regular Toll Increases [Revenue Risk - Price: Midrange]: The operator of the road is able to increase tolls annually by inflation under the concession agreement and has historically completed annual rate adjustments without issue. Predictable Operating Costs [Infrastructure Development & Renewal: Midrange]: A fixed operation and maintenance (O&M) agreement with an experienced toll road operator. The project benefits from oversight from an independent engineer who provides quarterly reports on the overall condition of the toll road along with current and future maintenance needs. There is a 12-month major maintenance reserve account. Conservative Debt Structure [Debt Structure: Stronger]: The notes are fully amortizing, fixed-rate obligations with typical project finance covenants. Liquidity available within the structure includes a six-month debt service reserve account, working capital voluntarily contributed by the stockholders, among others. Additional flexibility is also available as targeted principal amortization on the notes is deferrable. Financial Summary The project's rating case ratios are strong for the rating category with minimum and average DSCRs at 1.31x in 2023 and 1.34x, respectively. The rating is constrained by Fitch's assessment of the credit quality of the Minister of Public Works and Communications' MRG grantor obligation. PEER GROUP Given AdN's revenue profile, the most comparable transactions are P.A. Pacifico 3 and P.A. Costera, two Colombian toll road transactions rated 'BBB-', with revenues that are mostly dependent on grants and traffic top up payments by the concession's grantor. AdN's rating case credit metrics are slightly lower than those of the Colombian transactions, which present LLCRs of approximately 1.4x. Differently from P.A. Pacifico 3 and P.A. Costera, AdN's rating is constrained by the MRG grantor obligation's credit quality. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Negative Rating Action: -- A negative rating action on the Dominican Republic; -- Annual cash flows from operations, without considering MRG payments, plus all available cash below 1.5x debt service in a sustained basis; -- Heavier MRG collection delays that trigger the use of the DSRA to meet debt service obligations on a sustained basis. Future Developments That May, Individually or Collectively, Lead to Positive Rating Action: -- A positive rating action on the Dominican Republic's sovereign rating, to the extent project fundamentals and financial metrics support an improvement. TRANSACTION SUMMARY The toll road, completed in 2009, extends 106 kilometers (approximately 66 miles), connects Santo Domingo with the northern province of Samana, and includes three toll plazas. In comparison with alternative roads in the region, it considerably reduces the travel distance between Santo Domingo and Samana. AdN is the issuer, created under the laws of the Cayman Islands, and is an exempted limited liability company. CREDIT UPDATE As of September 2019, traffic increased 14.6% compared to the same period in 2018, while toll revenues increased 10.3%. Although traffic continues well below the original forecast, project liquidity remains strong in the form of a debt service reserve account (USD15.0 million), operational reserves permitted by the Indenture to be used for debt service if needed (USD25.4 million), and cash (USD3.4 million) as shareholders have decided not to take out the totality of the dividends accrued. Although the latter is not a contractual obligation, the company has expressed the intention of its shareholders to keep a relevant cash amount within the project to maintain healthy liquidity levels. The SBLC required under the concession agreement to cover any deficiency in MRG has not been renewed since 2017. However, the concession agreement indicates that in if the Revenue Deficit Reserve Account is at least USD1.0 million, the SBLC is not required. Thus, the company has properly funded this reserve. During 2019, the government delays in the payment of the MRG narrowed. Two MRG payments were received corresponding to periods of December 2018 to February 2019 and March to May 2019. The invoice corresponding to June to August 2019 has been recently invoiced. Fitch will continue to closely monitor collection days to verify the term does not significantly widen as this could represent short-term liquidity problems in the future. The concessionaire has programmed toll plaza expansion works for 2020, which are expected to be performed with available funds from the appropriate reserve accounts. These works are expected to conclude in April 2020. FINANCIAL ANALYSIS Fitch's base case assumed revenues according to MRG as traffic volumes are not expected to reach levels above those guaranteed by the Minister of Public Works and Communications. The Dominican Republic's Consumer Price Index (CPI) was assumed at 4.5% for 2019, and 4.0% onwards. The United States' CPI was assumed at 2.0% for 2019, 2.3% for 2020, 2.5% for 2021 and 2% onwards. O&M expenses were increased annually by inflation plus 5%. DSCR including resources from MRG resulted at 1.32x minimum in 2023 and 1.36x average. Fitch's rating case assumed Fitch's base case assumed revenues according to MRG as traffic volumes are not expected to reach levels above those guaranteed by the Minister of Public Works and Communications. The Dominican Republic's and United States' CPIs were assumed to be the same as in the base case. O&M expenses were increased annually by inflation plus 10%. DSCR including resources from MRG resulted at 1.31x minimum in 2023 and 1.34x average.. The decrease in both Fitch's base and rating cases' credit metrics observed in this review in comparison with those indicated in the previous review mostly reflects the fact that from 2019 onwards AdN is expected to pay taxes, following the expiration of the fiscal credit it benefited in previous years. Tax expenses incorporated in Fitch's base and rating cases reflect issuer estimates and may be slightly overstated as Fitch cases yield a lower taxable base. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of Environmental, Social and Governance (ESG) credit relevance is a score of 3. This signals that 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. CHINA FISHERY: Kasowitz Benson Represents Senior Noteholders ------------------------------------------------------------ In the Chapter 11 cases of China Fishery Group Limited (CAYMAN), et al., the law firm of Kasowitz Benson Torres LLP submitted a verified statement under Rule 2019 of the Federal Rules of Bankruptcy Procedure, to disclose that it is representing the Noteholder Group. In 2019, Davidson Kempner Capital Management LP, Cowell & Lee Asia Credit Opportunities Fund, Hutch Capital Management LLC, Autonomy Capital (Jersey) L.P., EG Capital Advisors UK Ltd, and EG Capital Advisors retained Kasowitz to represent their interests as investment managers of or sub-advisors to certain funds, controlled accounts, and/or other entities that hold or are beneficial owners of CFG Investment S.A.C.'s 9.75% Senior Notes Due 2019 in connection with the Debtors' chapter 11 cases. Kasowitz represents only the Noteholder Group and does not represent or purport to represent any entity other than the Noteholder Group in connection with the Debtors' chapter 11 cases. In addition, the Noteholder Group does not represent or purport to represent any other entity in connection with the Debtors' chapter 11 cases at this time. As of Dec. 13, 2019, members of the Noteholder Group and their disclosable economic interests are: (1) Davidson Kempner Capital Management LP 520 Madison Avenue, 30th Floor New York, NY 10022 * Senior Notes: $65,571,000 * Club Loan: $53,250,000 (2) Cowell & Lee Asia Credit Opportunities Fund c/o Cowell & Lee Capital Management Limited Room 1501 Ruttonjee House 11 Duddell Street Central, Hong Kong * Senior Notes: $47,282,000 (3) Hutch Capital Management LLC 8401 Patterson Ave, Suite 202 Richmond, VA 23229 * Senior Notes: $5,810,000 (4) Autonomy Capital (Jersey) L.P. Conway House, 2nd Floor 7-9 Conway Street St. Helier, Jersey JE2 3NT * Senior Notes: $11,500,000 (5) EG Capital Advisors UK Ltd 28 Savile Row London, W1S 2EU United Kingdom * Senior Notes: $4,220,000 (6) EG Capital Advisors Ugland house PO Box 309 Grand Cayman, Cayman Islands * Senior Notes: $550,000 Counsel for Senior Noteholders can be reached at: KASOWITZ BENSON TORRES LLP Michael A. Hanin, Esq. Matthew B. Stein, Esq. 1633 Broadway New York, NY 10019 Tel: (212) 506-1700 Fax: (212) 506-1800 E-mail: mhanin@kasowitz.com mstein@kasowitz.com A copy of the Rule 2019 filing, downloaded from PacerMonitor.com, is available at https://is.gd/QQ1D7x About China Fishery Group China Fishery Group Limited (Cayman) and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11895) on June 30, 2016. In the petition signed by CEO Ng Puay Yee, China Fishery Group was estimated to have assets at $500 million to $1 billion and debt at $10 million to $50 million. The cases are assigned to Judge James L. Garrity Jr. Weil, Gotshal & Manges LLP has been tapped to serve as lead bankruptcy counsel for China Fishery and its affiliates other than CFG Peru Investments Pte. Limited (Singapore). Weil Gotshal replaces Meyer, Suozzi, English & Klein, P.C., the law firm initially hired by the Debtors. The Debtors have also tapped Klestadt Winters Jureller Southard & Stevens, LLP, as conflict counsel; Goldin Associates, LLC, as financial advisor; RSR Consulting LLC as restructuring consultant; and Epiq Bankruptcy Solutions, LLC, as administrative agent. Kwok Yih & Chan serves as special counsel. On Nov. 10, 2016, William Brandt, Jr., was appointed as Chapter 11 trustee for CFG Peru Investments Pte. Limited (Singapore), one of the Debtors. Skadden, Arps, Slate, Meagher & Flom LLP serves as the trustee's bankruptcy counsel; Hogan Lovells US LLP serves as special counsel; and Quinn Emanuel Urquhart & Sullivan, LLP, serves as special litigation counsel. =============== C O L O M B I A =============== MONIQUIRA: Looks to Tourism to Revive Economy --------------------------------------------- The Latin American Herald reports that Moniquira, known as the cradle of the country's bocadillo de guayaba (a traditional guava jelly snack), is looking to revive its struggling economy with a varied tourism offering. Most of the town's 24,000 inhabitants make a living from growing plantains, yucca and sugarcane on small plots of land and selling them in the local market, although low prices, institutional neglect and a lack of generational renewal threaten to make farming inviable, according to The Latin American Herald. In response, the small farmers and inhabitants of Moniquira, located in the north-central province of Boyaca, are looking to attract visitors and bolster the local economy by touting the town's natural and gastronomic heritage, its mild climate and adventure tourism potential, the report notes. The Aroma Of The Guava Fruit The smell of the guava pervades the halls of the La Moniquireña bocadillo factory, where some 50 crates of the sweet and juicy tropical fruit arrive every Sunday, the report relays. The owner of the business, Libardo Villamil, told EFE that the bocadillo de guayaba was invented in Moniquira but is typically associated with the neighboring province of Santander because the town previously belonged to that administrative region, the report notes. Plight of The Countryside The bijao plant, which grows in the tropics, is one of Moniquira's main crops, the report notes. Its inhabitants pick the leaves and then bleach them before selling them in the market for an extremely low price, the report discloses. A farmworker who cultivates the bijao plant may earn "some 150,000 pesos (around $45) a week," said Guillermo Luis, a farmworker who also lamented the low prices of two other crops of which Moniquira is Boyaca's main producer: coffee and sugarcane, the report says. "Since the price is very low, people don't farm the land because they go broke. I've even sold my mules, and young people also don't want to work in the fields because there's no incentive," he said, the report notes. Guavas for bocadillos, meanwhile, are now brought in from other towns because that crop stopped being cultivated due to the damage caused by a species of small beetle native to Asia, the farmworker said, adding that the solution lies in carrying out a recovery effort in alliance with Colombia's National Training Service, the report relays. New Opportunities The problems of the farming sector led to a search for new economic opportunities, including an effort to draw visitors with an eco-tourism offering that leverages the area's nature trails and more than 15 waterfalls, the report discloses. One of those waterfalls, the Salto del Zorro, offers tourists the opportunity to practice the sport of abseiling, or rappelling (descending in a controlled manner off a vertical drop), go on nature hikes and take a dip in crystalline water, the report relays. A National Tourism Fund project also is financing campaigns to highlight Moniquira's natural beauty and eco-tourism and adventure tourism potential, the report adds. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Commerce Lags in Tech. Advances in Delivery --------------------------------------------------------------- Dominican Today reports that for the president of the business association Fenacerd, the use of delivery services by grocery stores to consumer is of vital importance and highlighted its contribution to increase as high as 90% the sales of those businesses. Manuel Ortiz Tejada, however, noted the hard work carried out by commercial leaders so that grocery stores and other businesses adopt new technologies, since only 10% of commerce accepts payments with plastic, according to Dominican Today. He added that the effort is being centralized in 90% of the commerce that does not accept plastic, or know about e-commerce, so that they can enter into technology, 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). =========== M E X I C O =========== HIDALGO STATE: Moody's Ups Issuer Rating to Ba1, Outlook Stable --------------------------------------------------------------- Moody's de Mexico S.A. de C.V. upgraded the baseline credit assessment and the issuer ratings of the State of Hidalgo to ba1 from ba2 and to Ba1/A1.mx (Global Scale, local currency/Mexico National Scale) from Ba2/A2.mx, respectively. The outlook is stable. RATINGS RATIONALE RATINGS RATIONALE FOR THE BCA AND ISSUER RATINGS The upgrade of the bca to ba1 from ba2 and the issuer ratings to Ba1 from Ba2 reflects the State of Hidalgo's strong cash financing balances, improved liquidity, very low debt levels, low unfunded pension liabilities and the absence of financial contingencies. Such positive trends are tempered by the state's relatively weak economic base and low own source revenue collection. Over 2014-2018, Hidalgo has consistently registered strong cash financing surpluses, equivalent on average to 5.5% of its total revenues, well above its Ba1-rated Mexican peers (-0.7%), as revenue growth has consistently surpassed expenditure growth in those years. Non-earmarked federal transfers "participaciones" and own source revenues have posted a compound annual growth rate of 9.0% and 9.1%, respectively, compared to the total expenditures growth of 5.6%. While Moody's expects that federal transfers for Mexican sub-sovereigns will grow below from their historic average in 2019-20, as a result primarily of low economic growth, Moody's expects Hidalgo to continue posting cash financing surpluses on average equivalent to 0.9%. Also, Moody's notes that the state will undertake relatively high capital expenditures compared with the 2014-2018 average (5.2% vs. 4.5% of total expenditures), nevertheless, cash financing balances will continue to compare favorably with Ba1 rated-peers. The state's liquidity has also been improving. Cash to current liabilities reached 1.54 times in 2018 and, as of September 2019, stood at 2.24 times. Given its expectation of continuous cash financing surpluses for 2019-20 Moody's anticipates that Hidalgo's liquidity will remain relatively strong at 1.66 times cash to current liabilities. In terms of debt, Hidalgo's net direct and indirect debt has remained very low, equaling 12.4% of total revenues in 2018, below the 21.9% median for Ba-rated peers. In addition, at the end of 2018 and in June 2019 the state refinanced three of its five long term loans, achieving a reduction of 33.2% in the debt's weighted average cost. Moody's notes that the state has no plans to acquire additional debt and therefore Moody's projects that leverage will decline to close to 11.9% of total revenues with debt service representing a low 1.5% of total revenues. Hidalgo has low unfunded pension liabilities, equivalent to 20% total revenues, well below the median of Mexican states rated by Moody's (106%). In addition, the state doesn't face financial contingencies related to its water company. Tempering Hidalgo's credit profile are the state's low own source revenues, equivalent to only 4.9% of total revenues on average between 2014-2018, below the Ba's Mexican rated peers (8.4% of total revenues). For 2019-20 Moody's expects that own source revenues collection will reach an average of 5.7% of total revenues. RATINGS RATIONALE FOR THE STABLE OUTLOOK The stable outlook of Hidalgo's ratings reflects Moody's expectation that the state will continue to post positive but lower cash financing balances, maintain its liquidity levels and a similar revenue base. ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS In Moody's assessment, environmental considerations don't represent an imminent material credit risk to the credit profile of the State of Hidalgo. Mexican states receive federal aid through a disaster fund in case of natural disasters. Social considerations are material to Hidalgo's credit profile. The state records a "medium" human development index, reflecting the relatively weak positioning of social indicators such as health, education and income levels. Governance considerations are material to Hidalgo's rating, the state's governance and management is in line with other Mexican peers. Hidalgo occupies the twelfth position in an evaluation conducted by the Ministry of Finance looking at the progress achieved in the implementation and operation of the results-based budget and performance evaluation system. WHAT COULD CHANGE THE RATING UP OR DOWN A material improvement of the state's own source revenues collection while maintaining stable and positive financial balances will exert positive pressure on the ratings. Conversely, a significant deterioration of financial balances would exert negative pressure on the ratings. The principal methodology used in these ratings was Regional and Local Governments published in January 2018. ======= P E R U ======= CAMPOSOL HOLDING: Moody's Withdraws B1 CFR due to Inadequate Info ----------------------------------------------------------------- Moody's Investors Service withdrew the B1 corporate family rating and stable outlook of CAMPOSOL Holding Plc. There were no ratings assigned to specific debt instruments. RATINGS RATIONALE Moody's has decided to withdraw the rating because of inadequate information to monitor the rating, due to the issuer's decision to cease participation in the rating process. Moody's withdraw Camposol Holding's ratings due to the company's corporate reorganization and the fact that Moody's will not receive financial information to continue monitoring the rating. In October 2019, Camposol Holding finalized a corporate reorganization resulting in the spin-off of its agricultural business which accounted for the majority of its consolidated revenues and EBITDA. Moody's last rating action on Camposol Holding was on August 16, 2019 when the agency upgraded Camposol Holding's corporate family rating to B1 from B2 with stable outlook. Based out of Lima, Peru, Camposol Holding is now engaged in the processing and marketing of shrimp. Camposol Holding posted revenues of $455 million in 2018. =============== X X X X X X X X =============== [*] BOND PRICING: For the Week December 16 to December 20, 2019 --------------------------------------------------------------- Issuer Name Cpn Price Maturity Country Curr ----------- --- ----- -------- ------- --- Corp Universidad de Co 5.9 64.2 11/10/2021 CL CLP City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD Fospar S/A 6.5 1.2 5/15/2026 BR BRL Province of Santa Fe 6.9 74.7 11/1/2027 AR USD Embotelladora Andina S 3.5 37.9 8/16/2020 CL CLP USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD KrisEnergy Ltd 4.0 40.4 6/9/2022 SG SGD Noble Holding Internat 5.3 60.5 3/15/2042 KY USD AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL MIE Holdings Corp 7.5 56.4 4/25/2019 HK USD Banco Macro SA 17.5 65.2 5/8/2022 AR ARS Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Province of Santa Fe 6.9 75.2 11/1/2027 AR USD Odebrecht Finance Ltd 7.0 16.5 4/21/2020 KY USD Noble Holding Internat 6.2 62.2 8/1/2040 KY USD YPF SA 16.5 67.3 5/9/2022 AR ARS Banco Macro SA 17.5 65.2 5/8/2022 AR ARS Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD Empresa de Transporte 4.3 30.9 7/15/2020 CL CLP Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD SACI Falabella 2.3 50.6 7/15/2020 CL CLP Sylph Ltd 2.4 65.1 9/25/2036 KY USD Banco Security SA 3.0 27.4 6/1/2021 CL CLP Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Province of Santa Fe 6.9 75.2 11/1/2027 AR USD Odebrecht Finance Ltd 7.0 16.5 4/21/2020 KY USD Province of Santa Fe 6.9 74.7 11/1/2027 AR USD Embotelladora Andina S 3.5 37.9 8/16/2020 CL CLP USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD MIE Holdings Corp 7.5 56.2 4/25/2019 HK USD Enel Americas SA 5.8 32.7 6/15/2022 CL CLP Empresa Provincial de 12.5 0.0 1/29/2020 AR USD Cia Energetica de Pern 6.2 1.1 1/15/2022 BR BRL Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD MIE Holdings Corp 7.5 56.2 4/25/2019 HK USD China Huiyuan Juice Gr 6.5 46.6 8/16/2020 CN USD Odebrecht Finance Ltd 7.0 17.0 4/21/2020 KY USD Yida China Holdings Lt 7.0 74.3 4/19/2020 CN USD Noble Holding Internat 6.1 62.0 3/1/2041 KY USD USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD YPF SA 16.5 67.3 5/9/2022 AR ARS Provincia del Chubut A 4.5 2208 3/30/2021 AR USD Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD Polarcus Ltd 5.6 71.8 7/1/2022 AE USD Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY Plaza SA 3.5 38.3 8/15/2020 CL CLP Banco Security SA 3.0 5.6 7/1/2019 CL CLP Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD Empresa Electrica de l 2.5 63.8 5/15/2021 CL CLP Sociedad Austral de El 3.0 17.0 9/20/2019 CL CLP Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP Esval SA 3.5 49.9 2/15/2026 CL CLP ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2019. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *