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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                 L A T I N   A M E R I C A

          Tuesday, February 25, 2020, Vol. 21, No. 40

                           Headlines



B R A Z I L

BRAZIL: Favela Economic Vitality Often Overlooked
ITAU UNIBANCO: Fitch Assigns Final 'BB' on US$1BB Sr Notes Due 2023


C A Y M A N   I S L A N D S

CAYMAN ISLANDS: Placed on Tax Haven Blacklist


C U B A

CRF I LTD: Sues Regime Over Defaulted Castro-Era Debt


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Mogul Says Political Crisis Won't Harm Tourism


E C U A D O R

ECUADOR DIVERSIFIED: Fitch Rates New Series 2020-1 Loans B+


J A M A I C A

JAMAICA: Economy Grew -0.5% to 0.5% in 2019 4th Qtr, BOJ Says


M E X I C O

CREDITO REAL: Fitch Assigns BB+(EXP) Rating on Sr. Unsec. Notes


T R I N I D A D   A N D   T O B A G O

TRINIDAD & TOBAGO: Unemployment Rate at 3.8% in 2018

                           - - - - -


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B R A Z I L
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BRAZIL: Favela Economic Vitality Often Overlooked
-------------------------------------------------
Dermot OSullivan at Rio Times Online reports that Brazil's favela
communities generate up to R$119.8 billion in financial
transactions per annum, more than do 20 of the 27 Brazilian states
- but this economic vitality is often overlooked.

Rio Times relates that Brazil's favelas are often associated with
violence and deprivation, but recent research carried out by Data
Favel and Locomotiva Institutes points to the often overlooked
economic vitality of these neighborhoods.

When combined, the country's favelas count 13.6 million residents,
just below the total population of the state of Bahia, according to
Rio Times Online.

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


ITAU UNIBANCO: Fitch Assigns Final 'BB' on US$1BB Sr Notes Due 2023
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Fitch Ratings assigned a 'BB' final Long-Term Rating to Itau
Unibanco Holding's MT Senior notes issued in the amount of
USD1,000,000,000 with a maturity date of Jan. 24, 2023, and USD
500,000,000 with a maturity date of Jan. 24, 2025.

The Final Rating follows a review of the final terms and conditions
conforming to information already received when Fitch assigned the
expected rating on Jan. 16, 2020.

The net proceeds of these Senior notes will be used for general
corporate purposes.

KEY RATING DRIVERS

The notes were rated at the same level as IUH's 'bb' Viability
Rating (VR) and its 'BB' Issuer default Rating (IDR), as these
senior notes 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 and the IDR,
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.




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

CAYMAN ISLANDS: Placed on Tax Haven Blacklist
---------------------------------------------
RJR News reports that the Cayman Islands has become the first UK
overseas territory to be named and shamed by Brussels for failing
to crack down on tax abuse.

The Islands has been added to the EU's blacklist of foreign tax
havens, which also includes Oman, Fiji and Vanuatu, according to
RJR News.

EU27 ambassadors took a decision to place the Cayman Islands on a
nine-strong list of overseas tax territories that do not
effectively co-operate with the EU, according to diplomats, the
report relays.

The move comes less than a month after the UK's exit from the EU,
the report discloses.

Officials said the Cayman Islands did not pass legislation that
adequately addressed concerns about companies who claim tax
advantages but do not have a sufficient economic presence on the
island, the report adds.




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C U B A
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CRF I LTD: Sues Regime Over Defaulted Castro-Era Debt
-----------------------------------------------------
Ezra Fieser at Bloomberg News reports that investment firm CRF I
Ltd. sued Cuba in a London court in an attempt to force the
island's communist government to repay commercial debt that it
defaulted on more than three decades ago.

CRF, which has held Cuban debt for more than a decade, said the
claim was filed in U.K. High Court against the government and
state-owned Banco Nacional de Cuba, according to Bloomberg News.
It stems from credits two European banks extended to the Cuban bank
in 1982 and 1984, according to a copy of the claim seen by
Bloomberg. CRF, which holds the debts in its portfolio, is seeking
principal and accrued interest, Bloomberg News relates.

"The board of CRF have made clear that the legal process now
underway will not be halted unless there is a satisfactory prior
negotiated settlement with the Cuban government," CRF said in a
statement, Bloomberg News notes.

Bloomberg News discloses that the suit comes after numerous efforts
to settle outstanding commercial debt obligations, which the Cuban
government stopped making interest payments on in the mid 1980s,
CRF said.  The Cuban government in 2015 reached an agreement with
some members of the Paris Club of foreign lenders in which it
agreed to repay $2.6 billion of the $11.1 billion it owed in
principal an accumulated interest on debt with other governments,
Bloomberg News says.

CRF formed the so-called London Club of creditors shortly
thereafter and sought to reach a similar deal, Bloomberg News
relates.  Seven years of attempts to reach a settlement were
ignored or rebuffed by the Cuban government, CRF said in its
statement, Bloomberg News notes.  The London Club made an offer as
recently as 2018 that included a substantial haircut, Bloomberg
News relates.  The firm hired law firm Gibson, Dunn & Crutcher LLP
to represent it in the claim, Bloomberg News notes.

Around the time Cuba stopped making interest payments, former Cuban
dictator Fidel Castro, who died in 2016, referred to debt as a
"cancer" that "imperialism has created." Castro's brother Raul
oversaw a rapprochement with U.S. President Barack Obama in late
2014 that was seen as Cuba's chance to normalize commercial
relations, Bloomberg News adds.

CRF said it remains open to negotiations with Cuba, which would
allow the island of 11.4 million to attempt to regain access to
borrowing. "Such a settlement could greatly improve Cuba's access
to the global capital markets," the firm said, Bloomberg News
relates.




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

DOMINICAN REPUBLIC: Mogul Says Political Crisis Won't Harm Tourism
------------------------------------------------------------------
Dominican Today reports that tourism mogul Frank Rainieri said the
political crisis sparked after the suspension of the municipal
election has raised some concern among tour operators, but "there
is no fear that this could lead to a decline in the tourism
sector."

"Without a doubt some worry and ask . . . .  but when one explains
and they see that the elections have already been called for March
15 and that everything is going automatically the calm returns,"
said the president of the Puntacana Group, according to Dominican
Today.

The praised the civic attitude of the population and political
parties, the report notes.  "In a similar event in any other
country in Latin America is that the streets overflow and nothing
has happened here," the report relays.

"I think it's a message of confidence in the country given the
degree of democracy that we have that has allowed a situation that
nobody likes, bothers, almost outrageous and yet has been handled
by the people in a civilized manner in a way according to what is a
democracy, respect and calm," he said at the American Chamber of
Commerce (AmchamDR) luncheon, 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 in April 2019
that the Dominican Today related that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."

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

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




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E C U A D O R
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ECUADOR DIVERSIFIED: Fitch Rates New Series 2020-1 Loans B+
-----------------------------------------------------------
Fitch Ratings assigned a 'B+' issue-specific rating to the $195
million proposed series 2020-1 loans originated by Ecuador
Diversified Payment Rights. The Rating Outlook is Stable.

RATING ACTIONS

TRANSACTION SUMMARY

The future flow program is backed by U.S. dollar-denominated,
existing and future DPRs originated in the U.S. (AAA/Stable) by
Banco del Pacifico S.A. (BdP) of Ecuador. The majority of DPRs
(99.9% in 2019) are processed by designated depository banks (DDBs)
that will execute account agreements (AAs).

Fitch's rating addresses timely payment of interest and principal
on a quarterly basis.

KEY RATING DRIVERS

Originator Credit Quality: The rating of this future flow
transaction is tied to the credit quality of the originator, BdP.
The company's Issuer Default Rating (IDR) is highly influenced by
its operating environment. Ecuador's IDR was affirmed on Aug. 21,
2019 at 'B-', and the Rating Outlook was revised to Stable from
Negative.

Going Concern Assessment: Fitch uses a going concern assessment
(GCA) score to gauge the likelihood that the originator of a future
flow transaction will stay in operation through the transaction's
life. Fitch assigns a GCA score of 'GC1' to BdP based on the bank's
systemic importance and state-owned shareholder. The score allows
for a maximum of six notches above the local-currency (LC) IDR of
the originator; however, additional factors limit the maximum
uplift.

Notching Uplift from LC IDR: The 'GC1' score allows for a maximum
six-notch rating uplift from the bank's IDR, pursuant to Fitch's
future flow methodology. However, uplift is tempered to two notches
from BdP's IDR due to factors mentioned, including Ecuador's lack
of last resort lender, large beneficiary concentration and high
future flow debt relative to total funding.

Relatively High Future Flow Debt: Total future flow debt including
the series 2020-1 loans is expected to represent approximately 6.7%
of BdP's total funding and 46.2% of non-deposit funding utilizing
financials as of December 2019. Fitch considers the ratio of future
flow debt to overall non-deposit funding to be relatively high and
will not allow the financial future flow ratings up to the maximum
uplift indicated by the GCA score.

Volatility of Future Receivables: BdP processed an average of
approximately $1.54 billion in DPR flows in 2018 and 2019, up from
$1.2 billion in 2017. While flows between 2018 and 2019 remained
nearly flat, the increase from 2017 is mainly related to large
nonrecurring capital flows. Fitch believes these flows should not
be relied upon as they are not continuous flows over the course of
business, such as those related to exports. Fitch excluded certain
government-related and nonrecurring DPR flows from its cash flow
analysis and base case assumption. Historical volatility of the DPR
flows limits the notching differential of the transaction.

Moderate Debt Service Coverage: Fitch expects the pro forma
unadjusted quarterly minimum debt service coverage ratio (DSCR) to
be approximately 20.1x. Fitch's adjusted base case DSCR is 17.0x
the maximum quarterly debt service for the life of the program when
considering Fitch's 'B+' interest rate stress, rolling quarterly
DDB collections from January 2015 to December 2019 and the
exclusion of certain nonrecurring and government-related DPR flows.
The calculated expected quarterly DSCR is commensurate with the
assigned rating. Fitch tested the sustainability of debt service
coverage and believes the transaction can withstand some stress,
including the loss of key beneficiaries and would continue to
support the assigned rating level.

No Lender of Last Resort: Ecuador is a dollarized economy without a
true lender of last resort. While certain mechanisms are in place
to help fend off a banking system crisis, this limits the notching
differential of the transaction.

Reduced Redirection/Diversion Risk: The structure mitigates certain
sovereign risks by collecting cash flows offshore until collection
of the periodic debt service amount, allowing the transaction to be
rated over the sovereign country ceiling. Fitch believes payment
diversion risk is partially mitigated by the AAs signed by the
three correspondent banks processing the vast majority of USD DPR
flows originating in the U.S.

RATING SENSITIVITIES

The credit strength of the transaction is linked to the performance
and credit quality of Banco del Pacifico S.A. The ratings are
sensitive to changes to the bank's LC IDR; the ability of the DPR
business line to continue operating, as reflected by the GCA score;
and changes in the sovereign environment and ratings assigned to
the Ecuadorian sovereign. Additionally, a change in Fitch's view of
the bank's GCA score can lead to a change in the transaction's
rating. Any changes in these variables will be analyzed in a rating
committee to assess the possible impact on the transaction
ratings.

Additionally, although coverage ratios are a key input to the
ratings assigned to the new issuance, the pro forma quarterly
minimum DSCR is estimated to be 20.1x and, therefore, should be
able to withstand some decline in cash flows in the absence of
additional issuances.




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

JAMAICA: Economy Grew -0.5% to 0.5% in 2019 4th Qtr, BOJ Says
-------------------------------------------------------------
RJR News reports that the Bank of Jamaica (BOJ) is estimating that
the local economy grew in the range of minus 0.5 per cent to 0.5
per cent during the December 2019 quarter.

That was a slower pace relative to the 0.6 per cent recorded for
the previous three months, according to RJR News.

The Central Bank said the estimated growth in the quarter mainly
reflected an increase in consumption spending, partly offset by a
decline in net exports, the report relays.

The BOJ says there was estimated growth in most industries for the
review quarter, with the exception of mining and quarrying as well
as construction, the report discloses.

Over the next eight quarters, real GDP is projected to expand at an
average quarterly rate in the range of 0.5 per cent to 1.5 per
cent, in line with the previous projection, the report says.

The Bank of Jamaica projects that labour market conditions will
also improve further over the next eight quarters, the report
notes.

It has forecast that the average unemployment rate over the March
2020 to December 2021 will decline to 6.9 per cent, relative to 7.7
per cent over the last year, the report relays.

The employed labour force is projected to increase at an average
rate of 0.8 per cent per quarter, while the labour force is
projected to remain generally flat, the report discloses.

The BOJ says the growth in employment is expected to provide a
boost for wage increases, which may lay the basis for higher
inflation in the future, the report adds.

                            About Jamaica

As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings in September 2019 raised its long-term foreign and
local currency sovereign credit ratings on Jamaica to 'B+' from
'B'. The outlook is stable. At the same time, S&P Global Ratings
affirmed its 'B' short-term foreign and local
currency sovereign credit ratings on the country. S&P Global
Ratings also raised its transfer and convertibility assessment to
'BB-' from 'B+'.

RJR News reported in June 2019 that Steven Gooden, Chief Executive
Officer of NCB Capital Markets, warned that the increasing
liquidity in the Jamaican economy might result in heightened risk
to the financial market if left unchecked.  This, he said, is
against the background of the local administration seeking to
reduce the debt to GDP to 60% by the end of the 2025/26 fiscal
year, which will see Government repaying more than J$600 billion
which will get back into the system, according to RJR News.




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M E X I C O
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CREDITO REAL: Fitch Assigns BB+(EXP) Rating on Sr. Unsec. Notes
---------------------------------------------------------------
Fitch Ratings assigned Credito Real, S.A.B. de C.V. Sofom, E.R.'s
upcoming four-year senior unsecured notes for up to CHF200 million
an expected long-term rating of 'BB+(EXP)'. The final rating is
contingent upon the receipt of final documents conforming to
information already received.

The notes will be unconditionally guaranteed by two restricted
subsidiaries of Credito Real (Credito Real, S.A. and CREAL Nomina,
S.A. de C.V.). Credito Real intends to use net proceeds from the
offering to fund organic growth as well as general corporate
purposes. Fitch expects there will not be increased exposure to
market risk as a result of this transaction, as the company will
hedge both FX rate risk and interest rate risk though derivative
financial instruments.

RATING ACTIONS

KEY RATING DRIVERS

The rating of the senior global debt is at the same level as
Credito Real's Long-Term Issuer Default Ratings (IDRs) of 'BB+', as
the likelihood of default of the notes is the same as the one of
Credito Real.

Credito Real's ratings are highly influenced by its
industry-leading franchise in the payroll deductible loans business
in Mexico, and a proven and resilient business model, which has
historically resulted in better than peer's asset quality for the
segment and an ability to generate high and recurring earnings. The
ratings are also significantly influenced by the company´s
high-risk appetite due to the operational, political and
reputational risks inherent to its payroll business and rapid
balance sheet growth. Its IDR also reflects its access to more
diversified funding sources and better unsecured debt structure
than local peers as well as healthy capital and leverage position
given its recurrent earnings generation through the economic cycle.
As of December 2019, leverage (measured as total debt to tangible
equity) was 4.8x. Fitch estimates that the proposed global senior
unsecured notes on a pro forma basis would result in an increase of
its leverage metrics close to 5.1x, levels still commensurate with
its ratings.

RATING SENSITIVITIES

The rating of this issue would mirror any changes in the company's
IDR, or could be downgraded below the company's IDRs if the level
of unencumbered assets substantially deteriorates subordinating the
bondholders to other debt.

SUMMARY OF FINANCIAL ADJUSTMENTS

Pre-paid expenses were reclassified as other intangibles and
deducted from Fitch Core Capital. Results from investments in
associates were reclassified as operating income. The extraordinary
gain that resulted from the early amortization of derivatives in
2016 was reclassified as non-recurring. Its legacy operational
lease portfolio was included in gross loans, with the portion of
delinquent leases classified as impaired loans. The coupons of the
perpetual notes were reclassified as interests.

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.

Credito Real has an ESG Relevance Score of 4 for Customer Welfare -
Fair Messaging, Privacy & Data Security due to its exposure to
reputational and operational risks as its main business targets
government employees and dependencies at relatively high rates,
which has a negative impact on the credit profile and is relevant
to the rating in conjunction with other factors.

Credito Real has an ESG Relevance Score of 4 for Exposure to Social
Impacts due to its exposure to a shift in social or consumer
preferences or to government regulation of its lending offer, this
has a negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors.




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T R I N I D A D   A N D   T O B A G O
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TRINIDAD & TOBAGO: Unemployment Rate at 3.8% in 2018
----------------------------------------------------
Trinidad Express reports that Trinidad and Tobago's unemployment
rate tumbled from 22.3 per cent in 1987 to 3.8 per cent in the
second quarter of 2018.

This is a significant decline and it means the country's
unemployment rate was one of the lowest in the world, according to
Trinidad Express.



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

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
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Information contained herein is obtained from sources believed to
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of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
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.


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