/raid1/www/Hosts/bankrupt/TCRLA_Public/200312.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

          Thursday, March 12, 2020, Vol. 21, No. 52

                           Headlines



C O L O M B I A

COLOMBIA: Struggling Amid Unheeded Lessons of Rebel Demobilization


M E X I C O

CEMEX SAB: Fitch Affirms BB LT IDR & Alters Outlook to Negative


P E R U

VOLCAN COMPANIA: Moody's Lowers CFR to B1 & Alters Outlook to Neg.


P U E R T O   R I C O

RELIANCE MANUFACTURING: Hires RCM Law Office
RELIANCE MANUFACTURING: Taps Del Valle Realty as Real Estate Agent
UNITED EMERGENCY: Plan & Disclosures Hearing Set for April 1

                           - - - - -


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C O L O M B I A
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COLOMBIA: Struggling Amid Unheeded Lessons of Rebel Demobilization
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EFE News reports that more than three years after a peace deal was
inked by the Colombian government and Revolutionary Armed Forces of
Colombia (FARC) guerrillas, the South American country still faces
major challenges in striving to leave behind its long legacy of
political violence.




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M E X I C O
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CEMEX SAB: Fitch Affirms BB LT IDR & Alters Outlook to Negative
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Fitch Ratings has affirmed CEMEX, S.A.B. de C.V.'s Long-Term Issuer
Default Rating at 'BB'. Fitch has also affirmed the company's
National Scale Long-Term Rating at 'A+(mex)' and affirmed the
company's National Scale Short-Term rating at 'F1(mex)'. The Rating
Outlook has been revised to Negative from Stable.

The revision of the Outlook to Negative incorporates Fitch's
expectation that CEMEX's operating cash flow and FCF will be under
pressure due to lower than expected economic growth in some of its
key markets as a result of COVID-19. Unless there is a rebound in
the company's markets, particularly Mexico, which contracted by 7%
during 2019, the company may have to take extraordinary measures to
stabilize its ratings. These measures, which may include selling
assets, could prove challenging during a period of high
uncertainty.

KEY RATING DRIVERS

Weak EBITDA Generation: CEMEX's EBITDA declined to USD2.1 billion
in 2019 from USD2.5 billion in 2017 and 2018. Steep volume declines
in Mexico accounted for about USD250 million of the decline with
the remaining mainly due to very weak performance in several
markets across Central America. Fitch forecasts CEMEX's EBITDA to
recover only modestly in 2020, as projected expansion in U.S.
EBITDA will not be sufficient to offset lost EBITDA in the Mexican
market during 2019. There is meaningful downside to these
projections considering rapidly declining global economic growth
expectations.

Difficult Mexican Market: Cement demand declined 7% in Mexico
during 2019. The severe weakening in construction activity was
triggered by a decline in business confidence and exacerbated by a
drastic slowdown in construction permitting, which paralyzed
construction activity in Mexico City. Mexico is the backbone of
CEMEX's cashflow generation, accounting for 37% of EBITDA. Fitch's
base case incorporates a modest rebound from these depressed levels
during 2020 and a very slow recovery in the years after.

Steady U.S. Market: Spending on highway and street construction
should increase to near mid-single digits in 2020 as the benefits
of the long-term highway bill and states' initiatives to find
additional funding for highway projects lead to continued spending.
Infrastructure spending measures in some of CEMEX's key states,
such as California and Texas, should support stable levels of
cement demand. Fitch expects new home construction to grow about 1%
in 2020, compared with a 5% contraction in 2019, mainly due to slow
home price appreciation and increasing wages. There is upside to
this projection given that mortgage rates have continued to
decline; however, COVID-19 has heightened uncertainty about the
magnitude of the growth in EBITDA in this market, if any.

Measures to Reduce Leverage: The company reported proceeds of about
USD500 million from asset divestments during 2019 and has announced
it reached agreements to sell additional assets worth about USD900
million. Fitch's base case suggests CEMEX net leverage will decline
to 4.3x in 2020 and 4x in 2021 from about 4.5x on a profroma basis
accounting for these sales. Projected leverage reduction is mainly
the result FCF of around USD300 million as no dividends will be
paid in 2020. CEMEX generated USD150 million of FCF in 2019 after
paying dividends of USD150 million.

FX Exposure: CEMEX reported that 92% of total debt was denominated
in hard currency, compared with about 35% of EBITDA generated in
hard currency during 2019. CEMEX's main hard currency contributors
are the company's operations in the U.S., the U.K. and in several
euro-based countries. Various fuel and energy prices, which tend to
be U.S. dollar-denominated, are an important portion of cement
production costs. CEMEX employs hedging instruments to mitigate
currency risk in costs and revenues. The company has historically
been successful in maintaining U.S. dollar prices after steep
currency depreciation in Mexico, its main market.

Strong Business Position: CEMEX is one of the world's largest
cement producers, selling 63 million metric tons of cement during
2019. It is the leading cement producer in Mexico and one of the
top cement producers in the U.S. CEMEX also has a large global
presence in ready mix and aggregates, with sales of 50 million
cubic meters of ready mix and 135 million metric tons of aggregates
in 2019. CEMEX's main geographic markets, in terms of its EBITDA,
include Mexico (37%), Central and South America (15%), the U.S.
(24%), Europe (16%), and Asia, Middle East and Africa (8%).

DERIVATION SUMMARY

CEMEX's ratings reflect its diversified business position across
several large markets, notably Mexico, the U.S. and several
European countries, its vertical integration and economies of
scale, and positive FCF generation. The company is the leading
cement producer in Mexico. The company is also one of the top
cement producers in the U.S. and the largest cement producer in
Spain.

CEMEX's closest comparisons are large global cement producers such
as LafargeHolcim (BBB/Stable) and HeidelbergCement (BBB-/Stable),
with whom CEMEX competes in several markets. LafargeHolcim, has the
broadest geographic diversification with operations spanning Europe
(25% of EBITDA), North America (25%), the Middle East and Africa
(12%), Latin America (16%), and Asia (27%). This compares with
HeidelbergCement at 30% of EBITDA generated in the U.S. and Canada,
while its exposure to Europe is 40%, Asia is 20% and Africa 10%.
Latin America is CEMEX's largest region, representing about 50% of
EBITDA, of which about 35% is generated in Mexico. The U.S.
represented about 25% of CEMEX's EBITDA with the remainder from
Europe at about 15% and, to a lesser extent, Israel and the
Philippines, primarily.

CEMEX's broader geographic diversification and larger scale compare
well with regional building materials companies such as Martin
Marrieta (BBB/Stable) and cement producers Votorantim Cimentos
(BBB-/Stable) and InterCement Participacoes S.A. (B-/Stable).
Votorantim Cimentos (IDR: BBB-/Stable), which has a dominant
position in Brazil and operations in the U.S. and Canada and
throughout the world, is not a direct peer, as its rating is tied
to that of Votorantim S.A., which includes mining, utilities and
financial services subsidiaries. Martin Marrietta is focused in the
U.S. and the Caribbean. InterCement's portfolio is weighted heavily
toward volatile, emerging market countries such as Brazil,
Argentina, Paraguay and Mozambique, which leads to much greater
cash flow uncertainty and higher exposure to FX risk when compared
with CEMEX.

From a financial perspective, CEMEX's ratings reflect its weaker
credit metrics when compared with its global peers, which are rated
higher. Its net leverage is projected to fall below 4.0x in 2022,
which is line with that expected of a 'BB' cement company with a
global presence. CEMEX global scale, business position and access
to funding are all positive factors. CEMEX's FFO fixed-charge
coverage is projected below 3x and is below the 3.5x expected for a
typical 'BB'-rated building materials issuer.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within the Rating Case for the Issuer

  - U.S. and Mexico cement sales volumes increase low-single digits
in 2020-2021;

  - Consolidated sales volume growth of low single digits over the
intermediate term;

  - EBITDA expected at around USD2.1 billion in 2020 and USD2.2
billion in 2021;

  - Capex of approximately USD800 million in 2020 and 2021;

  - Positive FCF generation over the intermediate term primarily
used for debt reduction;

  - Mexican peso to U.S. dollar exchange rate remains at around
19.5.

RATING SENSITIVITIES

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

  - Net debt/EBITDA around 3.5x;

  - Rising cement demand in international markets combined with
    robust cash flow generation in Mexico and U.S. that leads to
    significantly stronger EBITDA expectations;

  - A meaningful strengthening of CEMEX's business position in
    markets outside Mexico that leads to expectations of growing
    operating cash flow generation.

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

  - Weak economic conditions that restrict operating cash flow
    and free cash flow to a degree that net debt/EBITDA will
    remain above 4.0x throughout 2020 and beyond;

  - Expectations of a pronounced deterioration of Mexico's economic

    environment that leads to a material contraction in EBITDA
    prospects.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: CEMEX's main maturities over the next 2-3 years
are bank debt amortizations of approximately USD700 million in 2021
and USD1.2 billion in 2022 and USD520 million of convertible
securities maturing in 2020. The company has demonstrated ability
to access bank debt and capital markets, as shown by successful
debt refinancing, which totaled approximately USD4.0 billion in
bank debt in 2016 and 2017 and USD3.7 billion in capital market
debt, including EUR400 million of notes issued in March 2019 and
USD1 billion issued in November 2019. CEMEX had USD1.1 billion in
committed credit facilities maturing 2022 as of December 2019,
which complement its liquidity, and USD788 million in cash. Fitch
expects Cemex to continue to manage its debt maturities.

ESG CONSIDERATIONS

ESG issues are credit neutral or have only a minimal credit impact
on the entity(ies), either due to their nature or the way in which
they are being managed by the entity(ies).




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P E R U
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VOLCAN COMPANIA: Moody's Lowers CFR to B1 & Alters Outlook to Neg.
------------------------------------------------------------------
Moody's Investors Service downgraded to B1 from Ba2 the corporate
family rating of Volcan Compania Minera S.A.A. y Subsidiarias and
the rating of its senior unsecured notes due in February 2022. The
outlook is negative.

Rating Actions:

Issuer: Volcan Compania Minera S.A.A. y Subsidiarias

Corporate Family Rating, Downgraded to B1 from Ba2

Gtd Senior Unsecured Notes due 2022, Downgraded to B1 from Ba2

Outlook Action:

Issuer: Volcan Compania Minera S.A.A. y Subsidiarias

Outlook, Changed to Negative from Stable

RATINGS RATIONALE

The downgrade to B1 reflects the weakening of Volcan's liquidity
position, combined with the company's weaker profitability and
financial profile at a time of heightened pressure on base metals
prices. Volcan has a tight liquidity position, with a low cash
balance of USD34 million at year-end 2019 and a high amount of debt
maturing within the next 12 months (close to USD200 million at
year-end 2019), while its free cash flow generation is currently
limited. Volcan also has a USD535 million bond maturity in February
2022, which it will need to address in a timely manner. Under its
latest macroeconomic outlook, and considering the effects of the
coronavirus contagion, Moody's anticipates commodity prices to
remain around current lows until the end of Q2 2020, recovering
only gradually, which will continue to strain Volcan's earnings.

Moody's expects that Volcan will be addressing its weak liquidity
over the coming quarters, through various measures, including
potential asset sales and other transactions, and with a view to
reduce its reliance on short-term debt. Moody's also expects that
the company will address, with anticipation, the necessary
liability management on its bond maturing in early 2022. The
negative outlook nevertheless considers the continued pressure on
Volcan's earnings in the coming quarters and potential for delays
in the implementation of its plans which would further strain its
liquidity and pressure its ratings.

Volcan's B1 ratings incorporate the company's competitive cost
position, operational diversity in terms of metals produced and
assets, and position as a leading producer of zinc globally, having
some of the largest zinc reserves. Besides, Glencore plc (Glencore,
Baa1 Stable) became a controlling shareholder of Volcan in November
2017, with positive implications for Volcan's strategy, operations,
corporate governance standards and financial policies. However,
Volcan's ratings are constrained by the company's modest scale
(revenue of $744 million in 2019) compared with that of its global
peers and its concentration in one country, as well as its high
earnings volatility because of its exposure to commodity prices and
tight liquidity.

A stabilization of Volcan's outlook would require the company to
materially improve its liquidity by reducing its short-term debt
levels and addressing its large 2022 bond maturity. Volcan's
ratings could be upgraded if it maintains its competitive cost
position, and continues to invest for growth, achieving higher
scale, while maintaining adequate liquidity. Quantitatively, an
upgrade would also require an EBIT margin above 10% and a total
adjusted debt/EBITDA below 3.5x on a sustained basis.

Volcan's ratings could be downgraded if it fails to materially
improve its liquidity in the coming quarters, namely to reduce its
short-term debt and to address its large 2022 bond maturity in a
timely manner.

The principal methodology used in these ratings was Mining
published in September 2018.

Volcan is a Peruvian mining company which primarily produces zinc
and lead concentrate and some copper concentrate, all with high
silver content. The company operates through five operating units
including seven mines, seven concentrator plants and one leaching
plant for silver oxide production. All of Volcan's operations are
located in Peru and, in 2019, it reported revenue of USD744
million. Volcan is a holding company listed on the stock exchanges
of Lima, Santiago and Madrid (Latibex). Since November 2017,
Glencore has a controlling stake of 55% in Volcan's Class A voting
shares, which is equivalent to a 23.3% economic interest in
Volcan.




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P U E R T O   R I C O
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RELIANCE MANUFACTURING: Hires RCM Law Office
--------------------------------------------
Reliance Manufacturing, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire RCM Law
Office LLC.

RCM Law Office LLC was appointed as notary public for the contract
option for the sale of real estate property.

The compensation to RCM Law Office LLC shall be from such funds as
may be available to Debtor and to which Debtor may be legally
entitled, at the customary rates specified in the Notary Law.

RCM Law and/or its principals are disinterested persons as defined
in 11 U.S.C. Sec. 101(14), according to court filings.

The firm can be reached through:

     Rebeca Caquias Mejias, Esq.
     RCM Law Office LLC
     355 San Genaro Sagrado Corazon
     San Juan, PR 00926
     Mobile: 787-300-9024
     E-mail: rebeca@rcmlawpr.com

                 About Reliance Manufacturing

Reliance Manufacturing, Inc., is a privately-held home builder in
San Juan, Puerto Rico.

Reliance Manufacturing sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-05778) on Oct. 1, 2018.
In the petition signed by Gilberto Media Safon, president, the
Debtor disclosed $441,201 in assets and $2,788,977 in liabilities.
Judge Hon. Brian K. Tester presides over the case.  The Debtor
tapped MRO Attorneys at Law, LLC as its legal counsel.


RELIANCE MANUFACTURING: Taps Del Valle Realty as Real Estate Agent
------------------------------------------------------------------
Reliance Manufacturing, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire Del Valle
Realty Group as its real estate agents for the marketing and sale
of certain real estate properties of the Debtor.

Del Valle's commission is 5 percent of the value of the property
sold.

Del Valle is a disinterested person as the term is defined in 11
USC Sec. 101(14), according to court filings.

The firm can be reached through:

     Javier O. Del Valle Rodriguez
     Del Valle Realty Group
     Ave. Arterial Hostos
     San Juan, PR 00918
     Phone: +1 787-643-7000

                 About Reliance Manufacturing

Reliance Manufacturing, Inc., is a privately-held home builder in
San Juan, Puerto Rico.

Reliance Manufacturing sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-05778) on Oct. 1, 2018.
In the petition signed by Gilberto Media Safon, president, the
Debtor disclosed $441,201 in assets and $2,788,977 in liabilities.
Judge Hon. Brian K. Tester presides over the case.  The Debtor
tapped MRO Attorneys at Law, LLC as its legal counsel.


UNITED EMERGENCY: Plan & Disclosures Hearing Set for April 1
------------------------------------------------------------
Judge Mildred Caban Flores has conditionally approved the
Disclosure Statement proposed by United Emergency Medical Corp.
explaining its Chapter 11 plan.

The Debtor and parties-in-interest may now solicit acceptances or
rejections of the Plan of Reorganization.

Acceptances or rejections of the Plan may be filed in writing by
the holders of all claims on/or before 14 days prior to the date of
the hearing on confirmation of the Plan.

Any objection to the final approval of the Disclosure Statement
and/or the confirmation of the Plan shall be filed on/or before
fourteen (14) days prior to the date of the hearing on confirmation
of the Plan.

The Bankruptcy Court will convene a hearing on April 1, 2020, at
9:00 a.m. to consider final approval of the Disclosure Statement
and the confirmation of the Plan.

A copy of the order dated Feb. 20, 2020, is available at
https://tinyurl.com/vqycmdl from PacerMonitor at no charge.

                    About United Emergency

United Emergency Medical Corp. is a privately held company that
provides medical transportation services. United Emergency filed a
Chapter 11 petition (Bankr. D.P.R. Case No. 19-02477) on May 2,
2019.  The case is assigned to Hon. Mildred Caban Flores.  At the
time of filing, the Debtor disclosed assets of $1,681,407 and
liabilities of $825,705.  The Debtor's counsel is Ruben Gonzalez
Marrero, Esq. of GONZALEZ & VELASCO LAW OFFICE.



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

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