/raid1/www/Hosts/bankrupt/TCRLA_Public/200120.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, January 20, 2020, Vol. 21, No. 14

                           Headlines



A R G E N T I N A

ARGENTINA: Inflation Hits 53.8% in 2019, Highest in 3 Decades


B E R M U D A

ORTHO-CLINICAL DIAGNOSTICS: S&P Assigns CCC Rating on Unsec. Debt
SEABRAS 1 USA: Hires Stretto as Administrative Advisor


B R A Z I L

ITAU UNIBANCO: Fitch Assigns BB(EXP) Rating to USD Sr. Notes
ITAU UNIBANCO: Moody's Assigns Ba3 Rating to New Sr. Unsec. Notes
ITAU UNIBANCO: S&P Rates Proposed Senior Unsecured Notes 'BB-'
JBS SA: Opens New Friboi Processing Facility


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Should Explain Economic Miracle, Economist Says


E C U A D O R

ECUADOR SOCIAL: Fitch to Rate Class B Notes 'B-(EXP)'


M E X I C O

MEXARREND SAPI: Fitch Puts BB- LT IDRs on Rating Watch Negative


V E N E Z U E L A

VENEZUELA: Minister Reaffirms Strategic Partnership w/ China


X X X X X X X X

[*] BOND PRICING: For the Week January 13 to January 17, 2020

                           - - - - -


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

ARGENTINA: Inflation Hits 53.8% in 2019, Highest in 3 Decades
-------------------------------------------------------------
Global Insolvency, citing the Financial Times, reports that
Argentina's inflation rate hit 53.8 per cent in 2019, climbing to
its highest level in almost three decades and underlining the scale
of the challenges facing the embattled country's new leftist
president, Alberto Fernandez.

The national statistics agency disclosed that prices rose 3.7 per
cent in December after renewed currency volatility ahead of
elections last year, confirming Argentina's place among the top
five countries with the highest inflation rates in the world -
behind Venezuela, Zimbabwe, South Sudan and Sudan, according to
Global Insolvency.

Even so, Argentina's Peronist government faces the even more urgent
task of staving off the country's ninth sovereign debt default as
negotiations heat up ahead of a self-imposed deadline to come to an
agreement with creditors by the end of March, given heavy
obligations coming due in the following weeks, the report notes.

                          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 current president 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.

Moody's credit rating for Argentina was last set at Caa2 from B2
with under review outlook. Moody's rating was issued on Aug. 30,
2019.  S&P Global Ratings, in December 2019, raised its foreign
currency sovereign credit ratings on Argentina to 'CC/C' from
'SD/D'.  S&P's outlook on the long-term sovereign credit ratings is
negative. Fitch Ratings, in December 2019, upgraded Argentina's
Long-Term Foreign-Currency Issuer Default Rating to 'CC' from 'RD',
and its Short-Term Foreign-Currency IDR to 'C' from 'RD'.  DBRS,
Inc. meanwhile downgraded Argentina's Long-Term and Short-Term
Foreign Currency - Issuer Ratings to Selective Default (SD), from
CC and R-5, respectively, also in December 2019.




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B E R M U D A
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ORTHO-CLINICAL DIAGNOSTICS: S&P Assigns CCC Rating on Unsec. Debt
-----------------------------------------------------------------
S&P Global Ratings assigned its 'CCC' issue-level rating and '6'
recovery rating to the proposed senior unsecured notes that will be
co-issued by Ortho-Clinical Diagnostics Bermuda Co. Ltd.'s
(Ortho-Clinical) subsidiaries Ortho-Clinical Diagnostics S.A. and
Ortho-Clinical Diagnostics Inc. The '6' recovery rating indicates
our expectation for negligible (0%-10%; rounded estimate: 5%)
recovery in the event of a payment default.

Ortho-Clinical will use the proceeds from this issuance to
partially refinance its existing senior unsecured notes due 2022.
Our ratings on the company's existing debt remain unchanged.

S&P said, "Our 'B-' issuer credit rating on parent Ortho-Clinical
continues to reflect our expectation that the company's leverage
will remain high at more than 7.5x while its discretionary cash
flow generation stays minimal at between $30 to $40 million in 2019
and 2020." The rating also continues to incorporate our view that
the company operates in a very mature sector with modest growth
prospects and pricing pressures. These factors are partially offset
by Ortho-Clinical's significant scale and market presence in the
in-vitro diagnostics market and its strong revenue visibility
because of its significant consumable sales. The stable outlook
reflects our expectation for low-single-digit percent revenue
growth and moderate pricing pressure, which is in line with the
trends in the broader clinical diagnostics industry.


SEABRAS 1 USA: Hires Stretto as Administrative Advisor
------------------------------------------------------
Seabras 1 USA, LLC, and its debtor-affiliates seek authority from
the U.S. Bankruptcy Court for the Southern District of New York to
employ Stretto, as administrative advisor to the Debtors.

Seabras 1 USA requires Stretto to:

   a. assist with, among other things, claims management and
      reconciliation, plan solicitation, balloting,
      disbursements, and tabulation of votes, and prepare any
      related reports, as required in support of confirmation of
      a chapter 11 plan, and in connection with such services,
      process requests for documents from parties in interest,
      including, if applicable, brokerage firms, bank back-
      offices and institutional holders;

   b. prepare an official ballot certification and, if necessary,
      testify in support of the ballot tabulation results;

   c. assist with the preparation of the Debtors' schedules of
      assets and liabilities and statements of financial affairs
      and gather data in conjunction therewith;

   d. provide a confidential data room, if requested;

   e. manage and coordinate any distributions pursuant to a
      chapter 11 plan; and

   f. provide such other processing, solicitation, balloting and
      other administrative services described in the Engagement
      Agreement, but not included in the Section 156(c)
      Application, as may be requested from time to time by the
      Debtors, this Court or the Office of the Clerk of the
      U.S. Bankruptcy Court for the Southern District of New
      York.

Stretto will be paid based upon its normal and usual hourly billing
rates. Stretto will be paid a retainer in the amount of $25,000.

Stretto will also be reimbursed for reasonable out-of-pocket
expenses incurred.

Sheryl Betance, a managing director of Stretto, assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their estates.

Stretto can be reached at:

     Sheryl Betance
     STRETTO
     7 Times Square, 16th Floor
     New York, NY 10036
     Tel: (714) 716-1872
     E-mail: sheryl.betance@stretto.com

                      About Seabras 1 USA

Seabras 1 Bermuda LLC, and its wholly owned subsidiary Seabras 1
USA LLC, together with their other subsidiaries, are the owners of
a fiber optic cable system between New York USA and Sao Paulo
Brazil known as Seabras-1. Seabras-1 itself is fully operated by
Seaborn Networks, a leading developer-owner-operator of submarine
fiber optic cable systems.

Seabras 1 Bermuda LLC, and its wholly owned subsidiary Seabras 1
USA LLC, filed a Chapter 11 petition (Bankr. S.D.N.Y. Lead Case No.
19-14006) on Dec. 22, 2019.  In the petition signed by CEO Larry W.
Schwartz, the Debtors were estimated to have $50 million to $100
million in assets and $100 million to $500 million in liabilities.

The Debtors tapped Bracewell LLP as counsel; Barbosa Mussnich
Aragao as local counsel; and Stretto  as claims agent.  




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

ITAU UNIBANCO: Fitch Assigns BB(EXP) Rating to USD Sr. Notes
------------------------------------------------------------
Fitch Ratings assigned an expected rating of 'BB(EXP)' to Itau
Unibanco Holding's senior notes. The amount of the USD denominated
notes is yet to be determined. The notes will be issued under IUH's
Global Medium-Term Note Programme through IUH's Grand Cayman
Branch.

The tenor of these notes is yet to be determined, but is not
expected to exceed five years. The interest rate will be fixed, and
the interest rate payment frequency will be semi-annual. The net
proceeds of these senior notes will be used for general corporate
purposes.

The final rating is subject to the receipt of final documentation
conforming to information already received by Fitch.

KEY RATING DRIVERS

IUH's Long-Term Issuer Default Rating is 'BB'/Stable. The notes are
expected to be rated at the same level of IUH's 'bb' Viability
Rating, as these senior obligations will rank equally in the right
of payment with its other present and future unsecured and
unsubordinated indebtedness.

RATING SENSITIVITIES

As the notes are rated at the same level as the VR, their rating is
primarily sensitive to any change in the bank's VR. IUH's VR is
highly influenced by the Brazilian operating environment and the
bank's strong franchise and diversified business model. The bank's
risk appetite is commensurate with the operating environment. IUH's
IDRs and VRs are constrained by the sovereign ratings. IUH is the
largest private-sector financial conglomerate in Brazil and Latin
America.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3 - ESG issues are credit
neutral or have only a minimal credit impact on the entity, either
due to their nature or the way in which they are being managed by
the entity.


ITAU UNIBANCO: Moody's Assigns Ba3 Rating to New Sr. Unsec. Notes
-----------------------------------------------------------------
Moody's Investors Service assigned a Ba3 long-term foreign currency
debt rating to the proposed senior unsecured notes to be issued by
Itau Unibanco Holding S.A. (Cayman Islands). The proposed notes,
which are part of its existing $100 billion multi-seniority Global
Medium Term Note Programme, rated (P)Ba3, will be denominated and
settled in USD, and will be in three- and /or five-year tranches.

The outlook on the debt rating is stable.

The following ratings were assigned:

Issuer: Itau Unibanco Holding S.A. (Cayman Islands)

Senior Unsecured Regular Bond/Debenture, Assigned Ba3, stable

RATINGS RATIONALE

Itau Unibanco Holding S.A. (IUH) is the holding company of Itau
Unibanco S.A. (IU), which contributes 99% to the holding's
earnings. As such, debt obligations at the holding company
incorporate their structural subordination to IU's senior debt
obligations, which are rated (P)Ba2. The Ba3 senior unsecured debt
rating on the notes incorporates Itau Unibanco's fundamental credit
strength, as evidenced by its ba2 baseline credit assessment
(BCA).

IU's ba2 BCA reflects the bank's strong earnings recurrence
resulting from its well-established position in diversified
businesses, which ensures pricing power and scale. IUH reported
consolidated net income to tangible assets of 1.5%, reflecting the
expansion of its retail banking activities, supported by more
favorable credit risk conditions. The scenario of low interest
rates and inflation and the gradual economic recovery also led to
IUH growing the share of loans to small and very small companies
and to consumers. Combined with lower funding costs, the
higher-yielding loans supported margins, helping offset pressures
from increasing competition on fee earnings, particularly those
derived from card acquiring and asset management.

Asset quality has remained stable in the quarter, with problem
loans at 2.9% of total loans, backed by conservative reserve levels
of 6.2% of total loans. Accelerating loan growth, at the pace of
9.3% year-over-year, and higher dividend payout in the quarter
pressured capitalization, with Moody's tangible common equity ratio
declining to 8.97% of risk weighted assets, from 9.65% in the
previous quarter; nevertheless, capitalization remains adequate to
support further loan growth.

Moody's believes IUH's exposure to environmental risks is low,
consistent with its general assessment for the global banking
sector. IUH's exposure to social risks is moderate, consistent with
Moody's general assessment for the global banking sector. As well,
governance risks are largely internal rather than externally
driven. Moody's does not have any particular concerns with IUH's
governance.

WHAT COULD MOVE THE RATINGS -- UP/DOWN

The ratings assigned to the senior unsecured notes are notched from
IU's BCA of ba2 and consider the structural subordination of the
holding company's debts to the senior unsecured obligations issued
by the operating bank IU. As such, the ratings of the securities
will move in tandem with IU's BCA. IU's ratings have a stable
outlook and are in line with the stable outlook on Brazil's
sovereign debt rating of Ba2.

IU's BCA could be upgraded if Brazil's sovereign rating is
upgraded, and if the bank maintains strong asset quality and
profitability metrics supporting a continued strengthening in its
loss-absorbing capital buffers.

Conversely, the senior unsecured debt rating assigned to IUH could
face downward pressure if Brazil's sovereign rating is downgraded
or if IU's asset quality, capital and profitability weaken
materially.

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was Banks Methodology
published in November 2019.

Itau Unibanco Holding S.A. is headquartered in Sao Paulo, and is
the bank-holding company of Itau Unibanco financial conglomerate.
IUH had consolidated assets in the amount of BRL1,738.4 billion
($417.3 billion) and shareholders' equity of BRL138.5 billion
($33.3 billion) as of September 30, 2019.


ITAU UNIBANCO: S&P Rates Proposed Senior Unsecured Notes 'BB-'
--------------------------------------------------------------
S&P Global Ratings said that it assigned its 'BB-' issue-level
rating to Itau Unibanco Holding S.A.'s (BB-/Positive/B) proposed
series of global medium-term senior unsecured notes, issued through
its Grand Cayman branch. The offering will have a three- to
five-year tenor and will be dollar-denominated. The parent, Itau
Unibanco Holding S.A. (Itau), will use the proceeds primarily for
general corporate purposes.

The rating on the notes reflects their pari passu ranking with
Itau's other senior unsecured debt obligations. S&P said, "As a
result, we rate them at the same level as our long-term issuer
credit rating on the bank. Even though the exact amount is not yet
defined, the notes should not change Itau's funding base.
Therefore, we don't expect this issuance to alter our view of the
bank's funding profile."

The ratings on Itau reflect its diversified and resilient business
position stemming from a market-leading franchise, geographic and
business diversification, and its strong capacity to generate fee
revenues. S&P said, "Our ratings also incorporate the bank's
diversified and stable funding base due to a large retail deposit
base and adequate liquidity coverage of short-term wholesale
funding. We also factor in the bank's capital position, which,
despite high dividend payments, has been sustained by strong
earnings and modest credit growth. Finally, we believe the bank has
kept a diversified portfolio, low risk appetite, tight underwriting
standards, and manageable asset quality despite high credit losses
in the domestic market from 2015 to 2017, which were in line with
those of domestic peers."

S&P said, "Our stand-alone credit profile on Itau is 'bbb'.
However, Itau's large exposure to sovereign risk limits the
ratings. The sovereign ratings limit those on Itau because, similar
to other banks operating in Brazil, Itau has significant asset
exposure in the domestic market and to the sovereign. Moreover,
most of its liquid assets are invested in domestic government
bonds. Therefore, we cap our ratings on the bank by those on
Brazil."

  Ratings List

  New Rating

  Itau Unibanco S.A. (Cayman)
   Senior Unsecured            BB-


JBS SA: Opens New Friboi Processing Facility
--------------------------------------------
Global Meat News reports that owned by JBS SA, Friboi started a new
operation in the Mato Grosso state on January 9.  

The Company said it has invested over R$70 million (US$17 million)
in the acquisition and construction of the processing plant located
at Brasnorte city, which has an initial capacity to process 500
animals daily, according to Global Meat News.

According to Friboi, the initial aim is to meet domestic market
demand, the report notes.

In 2019, the Company said it invested in equipment upgrading and
implemented projects to allow a better production flow in its
facilities, the report discloses.

Other upcoming investments by Friboi include operating a continuous
freezing tunnel at its factory located in Barra do Garças (Mato
Grosso), which is expected to speed up operations, and the
increased capacity at its Mozarlândia plant, Brazilian state of
Goias, the report relays.

Two new hamburger lines at the Campo Grande (Mato Grosso) plant are
also planned in the first quarter to double production capacity,
the report notes.  The Company is also to begin a second work shift
at its Senador Canedo (Goias) facility to meet rising global demand
for animal protein, the report says.  These investments total more
than R$154 million (US$37.58 million), the report adds.

As reported in the Troubled Company Reporter-Latin America on Dec.
19, 2019, Moody's Investors Service upgraded JBS S.A.'s corporate
family rating to Ba2 from Ba3 and the senior unsecured ratings of
its wholly-owned subsidiaries JBS USA Lux S.A. and JBS Investments
II GmbH to Ba2 from Ba3. The rating of the secured term loan under
JBS USA Lux S.A. was upgraded to Ba1 from Ba2. The outlook for all
ratings is stable.




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

DOMINICAN REPUBLIC: Should Explain Economic Miracle, Economist Says
-------------------------------------------------------------------
Dominican Today reports that to classify the Dominican Republic as
a prototype of an economic miracle in Latin America, the government
has to explain why indebtedness grows more than GDP, why the
informal sector provides more than 55% of employment, why they have
reduced exports by specific lines, or why tax revenues have not
grown enough.

These considerations were presented by Guillermo Caram, former
governor of the Central Bank, who made the statement regarding the
dissemination of an article on the Argentine website Infobae,
entitled "What are the secrets of the 'economic miracle' that
nobody talks about in Latin America," under the signature of Dario
Mizrahi, according to Dominican Today.

In that sense, he stated that the authorities should reveal how it
is possible that in a "financial miracle," the debt increases much
faster than the GDP, the report notes.

Growth is supposed to generate wealth, resources, and surpluses
that make it unnecessary to resort to indebtedness, Caram said,
noting that in the country, the GDP 2012-2018 grew 41%. The debt
grew 63%, 34% faster, the report relays.

"Why have tax revenues grown at a much lower rate than GDP? 26%,
obtained by deflating from nominal growth (44%) 18% inflation
between 2012 and 2018?" asked the economist, the report notes.

Comparing that 26% of revenue growth with 41% of GDP, he said that
it should be explained why revenues evolved 63% below economic
growth, the report discloses.

Dominican Today says that another contradiction of the Dominican
economic miracle is employment, says Caram, stressing that the
government should explain why the informal sector generates 55% of
jobs.

"Between 2014-2018, jobs grew 14% while GDP was 27%. As there is no
evidence that our labor productivity has increased, it is not
understood why employment has grown at a rate equivalent to half
the GDP," the report relates.

"How is it possible that an economic miracle causes a deterioration
of the deficit in the balance of goods, 6.7%, going from US$8.7
billion in 2012 to US$9.3 billion in 2018?"

On fall exports and external dependence:  For Caram, it is
counterproductive that the country represents an economic miracle
when there is a fall in the production of items that have
traditionally had comparative advantages, the report notes.

"25% reduction in sugar exports, conversion of importers instead of
coffee exporters and 11% drop in industrial exports in those six
years," the report relays.

For Caram, one cannot speak of a miracle when there is an external
dependency, both when paying rents for foreign investments, the
report relays.  Both increased by 60% between 2012-2018, from US $
2.5 billion to US $ 3.9 billion, as well as in the service payments
of the non-financial public sector debt that averaged US $ 4.5
billion/year in those years, the report notes.

On poverty, lack of transparency: The benefits of the Dominican
economy do not correspond, according to Caram, with the maintenance
of such high subsidies and developing hurtful programs of human
dignity such as humiliating Christmas deals, the report relays.

Another of the weaknesses of the Dominican economic system, which
Caram refers to questioning the Argentine publication, is the low
position that the country has at the level of competitiveness
since, among 141, it ranks 78, the report relays.

The lack of transparency also contradicts any economic miracle,
affirms that "there is corruption, and there are complicities
between economic agents and the government in public decision
making: hiring, pricing," the report notes.

Another element that highlights Caram is the state intervention in
the market by setting interest rates to raise money to cover its
deficits, setting fuel prices, or electricity, the report relays.

In its list of the "12 miracles" of the local economy, it includes
institutional weakness. At the same time, the State disrespects
decisions of other organizations and the precariousness of public
services such as health, education, transportation, or citizen
security, the report adds.

                    About Dominican Republic

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

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

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

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




=============
E C U A D O R
=============

ECUADOR SOCIAL: Fitch to Rate Class B Notes 'B-(EXP)'
-----------------------------------------------------
Fitch Ratings expects to rate classes A and B 144A/Reg S notes to
be issued by Ecuador Social Bond S.a.r.l. 'AAAsf(EXP)' and
'B-sf(EXP)', respectively. The Rating Outlook is Stable.

The Republic of Ecuador (B-/Stable) expects to obtain funding to
finance its social housing program (EC-U0001) through the issuance
of class A and B notes. The Social Bond (B[EXP]), issued by Ecuador
and partially guaranteed by the Inter-American Development Bank
(IDB, AAA/Stable), will be the asset backing the class A and B
notes (together the repack notes). The assigned ratings address
timely payment of interest and principal on a semi-annual basis.

RATING ACTIONS

Ecuador IDB Repack

Class A; LT AAA(EXP)sf; Expected Rating

Class B; LT B-(EXP)sf;  Expected Rating

KEY RATING DRIVERS

Social Bond's Credit Profile: The Social Bond to be issued by the
Republic of Ecuador will be the asset backing class A and B notes
to be issued by Ecuador Social Bond S.a.r.l. (ESB). The Social Bond
shares all characteristics of other external indebtedness of
Ecuador. The only difference is that its proceeds are for specific
investment in Ecuador's social housing program and its debt service
benefits from a partial credit guarantee by the Inter-American
Development Bank.

IDB's Partial Credit Guarantee: The partial credit guarantee
between the IDB and Ecuador ESB as initial purchaser of the Social
Bond, partially covers Ecuador's failure to meet its obligations on
the Social Bond. After Ecuador's default on the Social Bond, all
draws from the IDB guarantee will be exclusively applied by the
Trustee to cover 100% of class A's debt service, covering a
percentage of the underlying Social Bond. The IDB guarantee
effectively covers 100% of the class A notes to be issued by ESB
within the 23-day cure period.

IDB's Strong Credit Quality: The rating assigned to the class A
notes is commensurate with the Issuer Default Rating (IDR) of the
guarantee provider. IDB is rated 'AAA'/Stable.

Strength of the Partial Guarantee: IDB's obligations under the
guarantee will constitute direct, unsecured obligations of IDB. The
guarantee is comprehensive in scope, ensuring timely payment of
debt service on the class A notes through the financing structure.

Class B Notes Linked to Ecuador's Long-Term Foreign Currency IDR:
Given all flows from the IDB guarantee will be applied to the class
A notes to meet debt service according to the guarantee's schedule,
a default by Ecuador under its obligations of the Social Bond would
lead to a default of ESB's obligations under the class B notes.
Hence, the credit quality of the class B notes is a pass-through of
Ecuador's rating.

RATING SENSITIVITIES

Class A notes ratings are sensitive to changes in the Long-Term
Foreign Currency IDR of the IDB, and the class B notes' ratings are
sensitive to changes in Ecuador's Long-Term IDR. Additionally,
changes in Fitch's view regarding the strength of the IDB guarantee
may impact the class A notes' ratings.




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

MEXARREND SAPI: Fitch Puts BB- LT IDRs on Rating Watch Negative
---------------------------------------------------------------
Fitch Ratings placed Mexican company Mexarrend S.A.P.I. de C.V.'s
BB- Long-Term Local and Foreign Currency Issuer Default Ratings,
BB- global senior unsecured debt rating, and A-(mex) Long- and
Short-Term National Ratings, local senior long-term unsecured
notes, and short-term unsecured debt program on Rating Watch
Negative.

The RWN reflects the erosion of the company's capital base and the
breach of Fitch's leverage sensitivity of 7x as of September 2019,
mainly driven by the registered net losses and high growth.
Mexarrend incurred extraordinary expenses driven by the unwind of
the derivative instruments used for the USD150 million unsecured
bond partial prepayment, in addition to costs associated to the
amortization of expenses related to the prepaid bond and those
associated with the placement of the new bond. The later together
with a significant balance sheet growth resulted on an unforeseen
increase on the company's tangible leverage ratio above Mexarrend's
and Fitch's expectations. Although current shareholders agreement
with Alta Growth and Colony Capital consider the possibility of
additional capital injections that could result on eased leverage
pressures, there is not an explicit commitment to make them on a
specific date of 2020.

Fitch expects to resolve the Watch status around three months from
now, with the outcome being heavily contingent on Fitch's
assessment on whether the tangible leverage ratio has returned or
is on track to return to levels around 7x or not, and once Fitch
has access to audited statements to assess accurately the impact on
earnings of the recent funding strategies. Fitch's updated opinion
on whether the entity is executing its strategy of growth and
profitability to strengthen structurally earnings generation will
also be a critical part of the watch status resolution.

KEY RATING DRIVERS

IDRS, NATIONAL RATINGS AND SENIOR DEBT

Mexarrend's ratings are highly influenced by its company profile,
which is characterized by a well-positioned and growing franchise
among Mexican independent leasing companies built through organic
and inorganic growth, although small within the Mexican financial
system as well as by a specialized business model that generates
recurrent core earnings through the economic cycles but will be
challenged by the reduction of one of its business lines. Recently
pressured tangible capital levels beyond the company's forecasts,
after relevant balance sheet growth and extraordinary events, have
also a higher influence on the ratings.

The ratings also reflect Mexarrend's inherent risks associated to
high organic and inorganic loan growth, although reasonably
executed; the weaker- than-peers asset quality ratios, and its
funding mix with an adequate portion of unsecured funding sources
and relatively adequate liquidity position. Fitch incorporated as
well the recent funding strategy that resulted on an unexpected
loss, that although is not related to the core business of the
company, it was the result of the Mexarrend's decisions and
execution.

Mexarrend's capital base was eroded as of September 2019 as a
result of the negative net income and other accumulated income
(OCI) losses. The later together with a significant increase on
total debt after the global issuance in the third quarter of 2019
(3Q19), pressured the company's tangible leverage ratio to levels
that are no longer commensurate with a 'BB-' rating. However, Fitch
believes the ultimate impact on capital will be defined once the
2019 audited financial statements are published and the
materialization of additional capital injections from shareholders
are clearer. Although Fitch was expecting an increase on tangible
leverage in 2019 and 2020, this was expected to be gradual and
projections estimated a maximum tangible leverage of 7x; a level
that Fitch had previously established as a downgrade trigger and
that was materially surpassed in the 3Q19 to 9x. Although a
relevant proportion of the effect is considered non-cash due to the
OCI effects on equity, without considering this effect this ratio
would have been 8.0x, still well above Fitch's projections.

The company registered negative pre-tax and net income as of
September 2019, driven by non-recurring items that are expected to
still generate net losses as of the close of December 2019. The
negative profitability was mainly driven by expenses associated to
the 2024 global unsecured issuance placed in July 2019, the
execution of the unwind of the hedging instruments and amortization
of prepaid expenses related to the partial amortization of the 2022
bond, the premiums of the derivative instruments of the new bond
and a negative carry from the excess cash in the balance sheet from
the resources of the recent bond. Fitch believes some of these
expenses are one-offs and are not related to the core operations
but resulted on unexpected and significant costs that were not
sufficiently compensated with core earnings.

As of September 2019, the pre-tax income to average assets ratio
was a negative 1.7%, while the average from 2015 to 2018 was 3.8%.
Previous to 2017, the company registered significantly higher
pre-tax income to average assets of above 5% recurrently. Fitch has
repeatedly stated that the valuation of its hedging instruments
since 2017 are virtually non-cash items but the losses from the
execution of the unwind were already materialized since these
contracts ended before their contracted maturity and faced a
valuation difference on the accounting vs market value. Regardless
of the extraordinary expenses, Mexarrend earnings base will need to
prove stability after the most recent change in the business model,
since the company decided to reduce significantly its equipment
financing business.

The agency views Mexarrend's funding base as relatively more
flexible and diverse especially compared to smaller Mexican NBFIs
rated by Fitch. However, it has a high concentration on market
debt. The company has access to global and local markets, banking
facilities, financial entities and vendor financing. As of
September 2019, 89.2% of total funding was unsecured a ratio which
compares positively against some competitors in the market.
Although unencumbered assets increased significantly, the coverage
of unsecured debt was reduced to 1.2x instead of the 1.4x as of
December 2018, given the high increase of unsecured debt as of
September 2019. Fitch will follow up closely this ratio since the
company is getting closer to the bonds rating's trigger.

Liquidity risk is relatively low as accumulated liquidity gaps are
positive; but refinancing risk increased as the majority of its
debt will mature in a bullet payment in 2024.

Mexarrend' global issuances rating are at the same level as
Mexarrend's Long-Term IDRs as the likelihood of default of the
notes is the same as for the IDRs. The local debt issues are at the
same level as Mexarrend's Long- and Short-Term National Ratings,
reflecting the same likelihood of default.

RATING SENSITIVITIES

IDRS, NATIONAL RATINGS AND SENIOR DEBT

A downgrade of the rating may occur if a possible capital injection
does not occur around three months from now or if tangible leverage
is not restored or on track to be restored to levels around 7x,
while earnings and balance sheet growth continue to erode
Mexarrend's capital position. If a capital injection is completed
and the leverage metrics enhanced in a material and sustained
manner, Fitch could remove the RWN and the ratings will be
affirmed. This should reflect Mexarrend's ability to adequately
execute its strategy to intrinsically enhance profitability and
capital metrics with a high growth projected in a more difficult
operating environment over a 12-18 month period. On the other hand,
a rating downgrade by one notch is very likely absent any capital
injection, given the current ample deviation in the leverage ratios
from what Fitch considers is consistent with the current rating
level.

The national scale ratings were also placed on RWN since these are
local relativities of creditworthiness and, therefore, could be
affected by a potential downgrade of Mexarrend's IDRs. In this
scenario, downside potential on these ratings is limited to the
category immediately below their current levels.

The ratings of the international and local debt issues will mirror
any movement in the company's Long-Term IDRs and National Ratings,
respectively, reflecting the same likelihood of default than the
company. The notes' rating may diverge from the IDRs if asset
encumbrance increases to the extent that it relevantly subordinates
senior unsecured bondholders.

SUMMARY OF FINANCIAL ADJUSTMENTS

For comparability and analytical purposes, Fitch reclassified
certain income statement and balance sheet accounts. In particular,
gross operating and finance lease income is composed of interest,
operating lease and equipment financing income net of the cost of
equipment. The revenue related services and supplies are presented
net of cost as "other operating income". Fixed assets under
operating leased contracts were classified as the operating lease
portfolio. Pre-paid expenses and some other assets were
reclassified as intangibles given their low loss absorption
capacity.

ESG CONSIDERATIONS

ESG Considerations

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3 - ESG issues are credit
neutral or have only a minimal credit impact on the entity, either
due to their nature or the way in which they are being managed by
the entity.

Mexarrend has an ESG Relevance Score of 4 for Management Strategy
due to recent changes like a new shareholder structure and the
changed role of the founder acting only as the CEO, and not as the
chairman of the board. However, recent execution risks from
inorganic growth need to be improved. This has an impact on the
credit profile, and is relevant to the ratings in conjunction with
other factors.

Mexarrend has an ESG Relevance Score of 4 for Governance Structure
due to positive corporate practices that were implemented recently,
but areas for improvement persist and given that it is exposed to
key person risk, which moderately decreased recently. The later has
an impact on the credit profile, and is relevant to the ratings in
conjunction with other factors.

Mexarrend has an ESG Relevance Score of 4 for Financial
Transparency given that although financial transparency has
improved, this is still recent and further enhancements are still
ongoing due to its non-regulated nature. This has an impact on the
credit profile, and is relevant to the ratings in conjunction with
other factors.




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

VENEZUELA: Minister Reaffirms Strategic Partnership w/ China
------------------------------------------------------------
The Latin American Herald Times reports that Venezuelan foreign
minister Jorge Arreaza reiterated his country's comprehensive
strategic partnership with China as the two nations share "sincere,
frank and mutually beneficial" ties.

Arreaza, who arrived in Beijing on Thursday and held a working
session with his Chinese counterpart Wang Yi, said the cooperation
between China and Venezuela extended to all spheres, according to
The Latin American Herald Times.

"It's a necessary association for trying to diversify the
Venezuelan economy, making efforts so that the Chinese investments
are reflected immediately in benefits for our people in housing,
increased oil production, food, and telecommunications," he said,
the report notes.
The report notes that the minister highlighted cooperation with
Beijing in sectors like environment, satellites, agriculture,
mining, and education.

Arreaza met Chinese Vice Premier Wang Qishan and gave a speech on
"Venezuela's role in defending multilateralism" at the China
Institute of International Studies, the report relays.

Taking a dig at the United States, the Venezuelan minister said
China did not aspire for "political domination over populations"
and "exploiting their natural resources," the report discloses.

He praised the Belt and Road Initiative -- Beijing's ambitious
multi-billion dollar investment project -- as a "peace proposal,"
and any attempt to "share gains and development as a common goal,"
the report relays.

The report discloses that Arreaza claimed that Venezuela's trade
and economic situation had improved despite inflation and the
supply of food and medicines in the country was getting better.

He blamed the US for the economic crisis in the country, alleging
that the South American country was put under great pressure by the
"blockade" and "economic, trade and financial war" waged by
Washington, the report notes.

The report relays that the minister asserted that despite a large
sum of Venezuelan money being stuck abroad due to sanctions, the
country witnessed its "most prosperous Christmas celebrations in
the last four or five years."

Discussing the possibility of dialog with the opposition, often
espoused by China, Arreaza said the negotiation effort mediated by
Norway, also supported by Washington, had failed because the
opposition withdrew from it, the report notes.

"The opposition doesn't want dialog, it never has," he said, the
report discloses.

Arreaza said he had held a discussion with Wang Yi over the
"similarities" between developments in Venezuela and the ongoing
protests in the Chinese semi-autonomous city of Hong Kong, the
report relates.

"The attempt to force another color revolution in Hong Kong is
familiar. The similarities are overwhelming: the symbolism that
they use, the funding which they receive, the pressure tactics on
security forces, it's the same format," he said, the report says.

The minister stressed that China was "an absolutely sovereign"
country and "would not get influenced by third parties" in its
policies and ties with Venezuela, the report notes.

Arreaza will travel to the city of Xi'an in central China over the
weekend, where he would meet local authorities before ending his
visit, the report adds.

                              About Venezuela

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

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

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

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

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

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

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




===============
X X X X X X X X
===============

[*] BOND PRICING: For the Week January 13 to January 17, 2020
-------------------------------------------------------------
  Issuer Name              Cpn     Price   Maturity  Country  Curr
  -----------              ---     -----   --------  -------   ---
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
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
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    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
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
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     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
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
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 2020.  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.
.


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