/raid1/www/Hosts/bankrupt/TCRLA_Public/200313.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

          Friday, March 13, 2020, Vol. 21, No. 53

                           Headlines



B O L I V I A

BOLIVIA: Morales Cites Studies to Blast Claim of Election Fraud


B R A Z I L

BANCO DE BRASILIA: Fitch Affirms BB- LongTerm IDR, Outlook Stable
JBS SA: Plans U.S. Listing as BNDES Sells Stake


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: $907MM January Tax Collection is Below Target
DOMINICAN REPUBLIC: Industry Braces for China Price Hikes
DOMINICAN REPUBLIC: Mines Roll Back Operations as Market Dwindles


G U Y A N A

GUYANA: Election Observers Concerned About Tabulation Process


J A M A I C A

JAMAICA: Ministers Meet With Cruise Industry Leaders


M E X I C O

HIPOTECARIA SU CASITA 06-5U: Moody's Ups Class A Debt to B3(sf)


P A R A G U A Y

PARAGUAY: IDB OKs $90MM Loan to Enforce Government Policies

                           - - - - -


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B O L I V I A
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BOLIVIA: Morales Cites Studies to Blast Claim of Election Fraud
---------------------------------------------------------------
The Latin American Herald reports that former Bolivian president
Evo Morales said that if fraud took place in last October's
election in the Andean nation, the Organization of American States
(OAS) was the guilty party.

"Many entities (maintain) that there was no fraud on Oct. 20 in
Bolivia.  If there was fraud, it was that of the OAS," Morales told
a press conference in the western Argentine city of Mendoza,
according to The Latin American Herald.

The Bolivian spoke out after two researchers at the Massachusetts
Institute of Technology said that their study of the returns found
no "statistical support" for OAS accusations of fraud to aid
Morales in his bid for a fourth term, the report notes.

"The most famous universities of Latin America and Europe said
there was no fraud and asked the OAS to retract and (conduct) a
profound investigation of those who carried out the electoral
audit," the report quoted Mr. Morales as saying.

The day after the elections, as the vote-counting continued, the
OAS joined the Bolivian opposition in claiming fraud, the report
notes.

Seeking to address those concerns, Morales agreed to an audit of
the ballots by the OAS, which issued a report on Nov. 10 asserting
that the results could not be validated due to "deliberate actions
that sought to manipulate" the vote count, the report says.

Morales, the first indigenous president of Indian-majority Bolivia,
denied the OAS allegation but agreed to a new general election, the
report notes.

Hours later, however, the military forced him to resign and he
accepted temporary exile in Mexico, before being granted asylum in
Argentina, the report relays.

In a Feb. 27 article in The Washington Post, John Curiel and Jack
R. Williams of the MIT Election Data and ScienceLab wrote: "as
specialists in election integrity, we find that the statistical
evidence does not support the claim of fraud in Bolivia's October
election," the report says.

The MIT researchers carried out their study at the request of the
Center for Economic and Policy Research, which last November
published a paper that likewise contradicted the OAS, the report
notes.

The OAS, according to Curiel and Williams, took a "novel approach
to fraud analysis" that rested on untested assumptions and
arbitrary standards, the report discloses.

Based in Washington and reliant on the US government for 60 percent
of its funding, the OAS responded to the MIT study with a statement
reiterating its claims of fraud, the report notes.

Bolivians are set to go the polls on May 3 for a re-run of the
October election and Morales announced plans to seek a seat in
Senate, but authorities barred his candidacy on the grounds that he
is not in the country, the report discloses.

The right-wing provisional government in La Paz has threatened
Morales with arrest if he returns to Bolivia, the report says.

Morales said that there was "no technical or juridical argument" to
justify the Supreme Electoral Tribunal's decision to keep his name
off the ballot, adding that he fears other candidates from his
leftist MAS party will also be disqualified, the report notes.

"They tried to destroy, to do away with, the MAS. They could not.
Now, they are trying to exclude individual candidates," he said,
the report discloses.

Morales used the appearance in Mendoza to repeat his appeal for a
global electoral mission to monitor "all the elements" of the
upcoming election process in Bolivia, the report notes.

"We defenders of democracy ask the international community to
accompany us, not just with observers," he said. "We are prepared
to protect the vote, but the participation of the international
community will also be important," the report says.

The leader of the provisional government, former Sen. Jeanine Anez,
is running for president despite having said at the time of her
installation as interim president by the armed forces that she
would serve only until voters elected a new government, the report
relates.

Anez belongs to a right-wing party that got only 4 percent of the
vote nationwide last October, the report notes.

MAS has chosen Luis Arce, who was economy minister for most of
Morales' 2006-2019 tenure, as its presidential candidate, the
report adds.

As reported in the Troubled Company Reporter-Latin America in
December 2019, S&P Global Ratings revised its rating outlook on
Bolivia to negative from stable. At the same time, S&P affirmed its
'BB-' long-term foreign and local currency sovereign credit ratings
and its 'B' short-term foreign and local currency ratings. The
transfer and convertibility assessment is unchanged at 'BB-'.




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B R A Z I L
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BANCO DE BRASILIA: Fitch Affirms BB- LongTerm IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings affirmed and removed from Rating Watch Negative Banco
de Brasilia S.A.'s 'BB-' Long-Term Issuer Default Ratings. The
Rating Outlook is Stable.

KEY RATING DRIVERS

IDRS, NATIONAL RATINGS AND VR

Fitch has removed BRB's ratings from Negative Watch following the
publication of BRB's audited financial statements and the
conclusion of the forensic audit. Ernst & Young issued an
unqualified opinion on BRB's financial statements for the period
ending on Dec. 31, 2019, while the forensic audit to investigate
potential irregularities that could have taken place in the legal,
financial, procedural, and information systems and technology areas
of the bank over the past six years resulted in no adjustments to
accounting balances. As such, Fitch believes that uncertainty
related to the potential impact on the bank's overall business and
risk profile has been reduced.

Fitch had placed BRB's rating on RWN in May 2019 because of delays
in the publication of the bank's YE 2018 audited financial
statements and due to uncertainties stemming from the forensic
audit.

BRB's Long-Term Local and Foreign Currency Issuer Default Ratings
(IDRs) are driven by its 'bb-' Viability Rating (VR). The bank's VR
is highly influenced by its resilient company profile and also
captures the limitations imposed by the Brazilian operating
environment. BRB continues to maintain its strong franchise in
Federal District with a stable and diversified retail funding base,
while the bank's financial profile has improved.

BRB's asset quality indicators are good, reflecting its focus on
secured lending. In December 2019, payroll deductible loans and
mortgages made up 55% and 8% of gross loans, respectively. In the
same period, NPLs over 90 days stood at a comfortable 1.7% of gross
loans, from 2.0%. Loans classified in the 'D-H' range fell to 5.1%
in December 2019 from 7.6% in 2018.

The bank has solid profitability, with operating profit at a high
6.2% of RWAs at December 2019 (5.7% in 2018). Fitch expects BRB's
earnings to remain stable and benefit from growth in relatively
lower risk products. BRB's capitalization is comfortable. The
bank's Fitch Core Capital ratio has steadily improved since 2015,
supported by modest growth, good profitability and moderate
dividend payments. In December 2019, the FCC ratio stood at 17.3%
up from 15.4% at YE 2018. Furthermore, funding and liquidity
remains sound. The bank has a retail funding base, which is highly
stable, diversified and low cost.

SUPPORT RATING

Fitch affirmed BRB's SR at '4'. The bank's SR reflects the limited
probability of support from its majority shareholder, Governo do
Distrito Federal (GDF). Fitch believes the GDF would have a high
willingness but relatively limited capacity to support BRB, should
the need arise. BRB is strategically important for the GDF, as it
is the local government's main financial agent, and it has a
meaningful market share in the state's loans and time deposits. In
addition to its commercial operations, BRB performs a policy role
for the region through lending operations that aim to promote
development and growth.

BRB has an ESG Relevance Score of 4 for Governance Structure due to
its state-owned nature that increases potential political
interference risks, which has a negative impact on the credit
profile, and is relevant to the ratings in conjunction with other
factors.

RATING SENSITIVITIES

IDRS, SUPPORT RATING

Changes in BRB's VR could affect the bank's IDRs, while material
changes in Fitch's assessment of GDF's ability and willingness to
provide support to BRB could also affect both the IDRs and the SR
of the bank.

VIABILITY RATING

BRB's VR could be downgraded in case of a sovereign ratings
downgrade. Additionally, a sustained decline in the bank's FCC
ratio to less than 11% or its operating income/RWA to less than 2%
would also be negative for creditworthiness.

An upgrade in BRB's VR would be conditional on a sovereign ratings
upgrade and at the same time on a sustained and material
improvement of its operating profit/RWA ratio and its FCC ratio.
The agency will continue to monitor future developments of Circus
Maximus Operation and possible effects on BRB, as the Investigation
is ongoing.

NATIONAL RATINGS

The National ratings of BRB may be affected by a change in Fitch's
perception of the bank's local relativities with respect to other
Brazilian entities.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

BRB's Support Rating is Driven by Governo do Distrito Federal (GDF)
Ratings.

ESG CONSIDERATIONS

BRB - Banco de Brasilia SA: 4.2; Governance Structure: 4

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.

BRB has an ESG Relevance Score of 4 for Governance Structure due to
its state-owned nature that increases potential political
interference risks, which has a negative impact on the credit
profile, and is relevant to the ratings in conjunction with other
factors.


JBS SA: Plans U.S. Listing as BNDES Sells Stake
-----------------------------------------------
The New York Times, citing Reuters, reports that five sources with
knowledge of the matter said JBS SA and Banco Nacional de
Desenvolvimento Economico e Social (BNDES) are planning a
simultaneous listing of JBS international operations in the United
States and the sale of the bank's stake in the company.

Sources close to the company say JBS is working on a transaction
that is different from the one proposed in 2016, according to The
New York Times.

The U.S. listing would be simultaneous with the partial or full
sale of BNDES' 21.3% stake in JBS, two of the sources said, the
report notes.

The transaction model is not yet final, as discussions are ongoing,
the report relates.  But JBS expects to spin off its international
operations to be listed in New York as a separate company with the
same shareholders, but not a subsidiary, the report says.
Operations in Brazil will continue under JBS SA, currently listed
at the Sao Paulo stock exchange.

Around 75% of JBS' revenue is obtained outside Brazil, mostly in
the United States, but also in Australia and Europe, the report
discloses.

JBS and BNDES declined to comment on the matter.

Last November, BNDES hired the investment banking units of Banco
Bradesco SA, Banco BTG Pactual SA, Itau Unibanco Holding SA, Bank
of America and UBS Group, the report recalls.

One of the sources said the company still expects to list in the
United States in the second quarter of the year, but the roadshow
dates are being pushed back by the volatility related to the
coronavirus outbreak. JBS will report its fourth-quarter earnings
on March 25, the report notes.

JBS management would join BNDES executives in the roadshow to sell
their stake, the sources added, the report says.  The company will
probably not hire a bank, but only lawyers, for the spin-off and
listing of its international operations, according to two of the
sources, since the company is not planning a primary offering, the
report relates.

A listing of JBS in the United States would face pressure from
lobbyists and lawmakers that have recently demanded investigations
about the company and its shareholders, brothers Wesley and Joesley
Batista, the report adds.

                             About BNDES

Banco Nacional de Desenvolvimento Economico e Social, doing
business as BNDES -- www.bndes.gov.br -- operates as a development
bank.  Founded in 1967, the Bank supports exports, technological
innovation, sustainable development, public administration
modernization, and financing for companies. BNDES has headquarters
in Rio de Janeiro, Brazil.

As reported in the Troubled Company Reporter-Latin America on March
15, 2018, S&P Global Ratings affirmed its 'BB-' long-term foreign
and local currency global scale ratings on Banco Nacional de
Desenvolvimento Economico e Social (BNDES).

                             About JBS SA

JBS S.A. is a Brazilian company that is the largest (by sales) meat
processing company in the world, producing factory processed beef,
chicken and pork, and also selling by-products from the processing
of these meats. It is headquartered in Sao Paulo.

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: $907MM January Tax Collection is Below Target
-----------------------------------------------------------------
Dominican Today reports that January tax collection fell short of
the government's expectations.

According to Internal Taxes (DGII) collected in the first month
RD$48.1 billion (US$907.5 million), some RD$1.8 billion below the
target, the report notes.

The preliminary report published by the DGII said that a collection
of RD$50.7 billion was expected, so that the amount actually
achieved was 96.4% of that goal, according to Dominican Today.

It is not the first time that the DGII does fails to reach the
collection goal. In 2019, it was 1.5 points below, covering 98.5%
of what was expected for that year, that is RD$483.1 billion of the
RD$490.5 billion expected, 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).


DOMINICAN REPUBLIC: Industry Braces for China Price Hikes
---------------------------------------------------------
Dominican Today reports that the restrictions on trade that have
been taken in China could increase the price of products and raw
materials imported from that nation and requires by local
industry.

Dominican Republic Industry Association (AIRD) executive vice
president Circe Almanzar said the restrictions placed by China on
trade Because of the coronavirus, will make all imported products
and materials more expensive, according to Dominican Today.

"All imports may have increases, because we depend a lot on the
import of raw materials and equipment from China but also on
finished materials and not only us but many countries," she said,
the report notes.

The business leader spoke in the breakfast "Sowing Culture-Quality
for the development of industry and commerce," 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).


DOMINICAN REPUBLIC: Mines Roll Back Operations as Market Dwindles
-----------------------------------------------------------------
Dominican Today reports that some companies in the local mining
sector have suspended part of their operations on a dwindling
market to sell ferronickel, due to mobility and transport
restrictions in China to prevent the expansion of coronavirus.

"These suspensions have been until there is greater certainty in
the international market," said Dominican Republic Industries
Association (AIRD) executive vice president Circe Almanzar at a
business breakfast, according to Dominican Today.

In that regard, AIRD president Celso Juan Marranzini warned that
the effect of this virus on the world economy will negatively
impact the national economy, which is why he expects the Central
Bank will enact monetary measures as it has done in similar
situations, 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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G U Y A N A
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GUYANA: Election Observers Concerned About Tabulation Process
-------------------------------------------------------------
Caribbean360.com reports that four days after regional and general
elections were held in Guyana with still no winner officially
declared, regional and international observers are expressing
concern about the tabulation process in the country’s largest
voting district, and have urged authorities not to name a victor in
the polls.

The Guyana Elections Commission (GECOM) released results for Region
4 -- in which the country's capital, Georgetown, is located -- that
would result in the incumbent, according to Caribbean360.com.

A Partnership for National Unity-Alliance for Change (APNU-AFC)
coalition returned to government, the report notes.  But the main
opposition People’s Progressive Party/Civic (PPP/C) is adamant
that if the statements of poll are verified, it would emerge
victorious, the report relays.

The opposition party secured a court ruling compelling the
commission to verify results before publishing, the report
dicloses.

The results provided by GECOM showed the APNU-AFC coalition
securing 136,335 votes while the PPP/C got 77,258 in Region 4
(Demerara-Mahaica) which had 285,618 registered voters, the report
says.

There were several delays to completing the required process in
Region 4, including a bomb scare at GECOM's command centre where
the verification of statements of poll was taking place, the report
notes.

Although the general consensus was that the elections were free and
fair, observer missions are keeping a close eye on the tabulation
process in Region 4, the report relays.

In a joint statement, the missions from the Commonwealth, the
Organization of American States, the European Union, and The Carter
Centre said the tabulation "remains incomplete," the report
relays.

"The law requires that tabulation must be conducted in the presence
of party agents and observers.  Until this transparent process
takes place, the counting of votes recorded for Region 4 remains
incomplete.  The transparent tabulation of results for Region 4
must be resumed in order to proceed to the establishment of
national results," it said, adding that a "calm and conducive
environment must be provided by the police," the report notes.

"We urge all political parties to adhere to the codes of conduct
signed by them. The Guyana Elections Commission, including the
chairperson, the commissioners, the chief election officer, the
returning officer and deputy returning officers in Region 4, must
be available and committed to establish the results for Region 4 in
accordance with the law, the report discloses.

"Until this occurs, the result of these elections cannot be
credibly declared," the international observers added, the report
says.

The Caribbean Community (CARICOM) observer mission also issued a
brief statement, saying that it was concerned about the allegations
with respect to the tabulation of results based on the Statements
of Polls in Region 4, the report notes.

"The Community calls on the Guyana Elections Commission to ensure
that all legal and procedural processes are faithfully complied
with in respect of the vote count and the declaration of results to
ensure that the outcome of the polls expresses the will of the
people of Guyana. We call on all parties and Guyanese to remain
calm while these issues are resolved," it said, the report
relates.

The PPP, meantime has also urged calm, telling its supporters that
they have the international community on their side, the report
discloses.

"While we understand the hurt, frustration and fear about electoral
fraud being perpetuated against the Guyanese people, we have the
solidarity of the international community," it said.

"They have all made it clear that as it stands results of the
Elections cannot be credibly declared and there can be no
swearing-in of a president since such an action would be illegal.

"The PPP agrees with the international community; there can be no
swearing in of a new president under the current circumstances. The
Party wishes to also warn that public officers, especially
constitutional office holders, facilitating such an illegal action
would be complicit in the perpetuation of electoral fraud in
Guyana," the PPP added.

It further insisted that there must a return to the process of
verifying the results of the elections for Region 4, using the
Statements of Polls, as required by law, the report notes.

"This is the only process that will deliver free and fair elections
and ensure that the will of the Guyanese people is not subverted.
The People’s Progressive Party continues to work towards this
objective," the party said, the report relates.

Meantime, United States, British, Canadian and European Union
envoys urged authorities to hold off declaring a winner until
issues have been resolved, the report discloses.

They issued a joint statement in which they expressed "deep concern
over credible allegations of electoral fraud which may influence
the results of this election," the report notes.

"We call on all to ensure proper procedures are in place to yield a
credible election result. A fair and free process is vital for the
maintenance and reinforcement of democracy in Guyana," said the
statement from Heads of Mission of the Embassy of the United States
of America, H.E. Sarah-Ann Lynch, the British High Commission, H.E.
Greg Quinn, the Canadian High Commission, H.E. Lilian Chatterjee,
and the Delegation of the European Union, H.E Fernando Ponz-Canto,
the report relates.

"We call on President [David] Granger to avoid a transition of
government which we believe would be unconstitutional as it would
be based on a vote tabulation process that lacked credibility and
transparency," the report says.

Meantime, President Granger this morning met with CARICOM
Secretary-General Ambassador Irwin LaRocque, and reiterated that
the polls had been orderly, and in full compliance with the law and
the Constitution, the report notes.

"We are awaiting the final declaration from GECOM," he added.

Recounts requested by the APNU-AFC coalition are underway in
Regions 5 and 6, the report adds.




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

JAMAICA: Ministers Meet With Cruise Industry Leaders
----------------------------------------------------
RJR News reports that with the Jamaican Government implementing
stringent restrictions at the country's borders to prevent the
spread of the coronavirus, Health Minister Dr. Christopher Tufton
and Tourism Minister Ed Bartlett have met with senior executives of
two major international cruise line companies.

The parties discussed the strict protocols implemented by Jamaica
regarding cruiseliners coming to the country's ports, according to
RJR News.

Delano Seiveright, Senior Strategist in the Ministry of Tourism,
told Radio Jamaica News that the meetings were held in Miami and
Fort Launderdale, the report notes.

Last month, the government denied entry to a MSC megaliner due to
fear of the coronavirus, the report relates.

The company expressed grave concern about the decision.

Dr. Tufton had announced that protocols were put in place to
prevent the introduction of the COVID-19 virus via cruise ship
passengers, the report discloses.

He said the government was also monitoring the travel history of
visitors prior to allowing them access to the country, 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
===========

HIPOTECARIA SU CASITA 06-5U: Moody's Ups Class A Debt to B3(sf)
---------------------------------------------------------------
Moody's de Mexico, S.A. de C.V. upgraded Class A BRHSCCB 06-5U to
B3 (sf)/ Ba3.mx (sf) from Caa1 (sf)/ B2.mx (sf) and affirmed Class
B - BRHSCCB 06-6U ratings at Caa3 (sf)/ Caa3.mx (sf) of Hipotecaria
Su Casita, S.A. de C.V., Sociedad Financiera de Objeto Limitado
(HSC) issued by CIBanco, S.A., Institucion de Banca Multiple acting
solely in its capacity as trustee. The upgrade on Class A is based
on the transaction's credit enhancement, loss coverage and lifetime
expected recovery rate. The collateral backing the transaction
consists of first-lien, fixed-rate loans denominated in UDIS and
granted primarily to low-income borrowers.

The rating actions are as follows:

Issuer: Hipotecaria Su Casita - BRHSCCB 06-5U & BRHSCCB 06-6U

BRHSCCB 06-5U, Upgraded to B3 (sf); previously on Dec 7, 2016
Downgraded to Caa1 (sf)

BRHSCCB 06-5U, Upgraded to Ba3.mx (sf); previously on Dec 7, 2016
Downgraded to B2.mx (sf)

BRHSCCB 06-6U, Affirmed Caa3 (sf); previously on Dec 7, 2016
Confirmed at Caa3 (sf)

BRHSCCB 06-6U, Affirmed Caa3.mx (sf); previously on Dec 7, 2016
Confirmed at Caa3.mx (sf)

RATING RATIONALE

The action reflects BRHSCCB 06-5U's available credit enhancement,
over-collateralization and lifetime expected loss levels.

To date Class A has paid down 93% of its initial value, while class
B has paid close to 75%, however payment levels have slowed down
given collection complexities on the remaining pool.

The transaction shows strong levels of credit enhancement in the
form of over collateralization, subordination and reserve fund of
71% for Class A and 57% for Class B. This covers Moody's projected
lifetime losses of around 50% of the original pool, resulting in a
coverage of approximately 1.6 times against future losses for class
A and 1.3 times for Class B. The analysis also considers the
transaction's dual interest and principal payment waterfall, the
release of principal to Class B, and temporary interest payment
shortfalls on both classes due to high operational expenses of the
transaction. The analysis accounts for the increase in mortgage
collections and recoveries following the servicing transfer to
Pendulum S. de R.L. de C.V., in December 2016 and it's successfully
implemented restructure and liquidation programs. The ratings are
also consistent with the Approximate Expected Recoveries Associated
with Ratings for Defaulted or Impaired Securities contained in
Moody's Rating Symbols and Definitions, published in January 2020.

As part of its ongoing surveillance of Mexican RMBS, Moody's uses
transaction-specific performance data to help revise its expected
loss assumptions during the life of the transaction. The
transaction specific data that Moody's considers includes
delinquency rates and trends, cumulative default rates, and
pool/bond factor trends, among other items.

Its monitoring analysis centers on a comparison of its Portfolio EL
assumption to each certificate's total credit enhancement (i.e.
loss coverage ratio analysis). Available credit enhancement, which
Moody's calculates as a percentage of the total pool balance,
considers subordination, overcollateralization, lifetime excess
spread estimate using an estimated tranche WAL, and any partial
credit guarantee supporting the senior certificate. Per the global
MILAN methodology, Moody's may perform a more bespoke analysis
comparing its Portfolio EL assumption to each bond's total credit
enhancement (i.e. loss coverage ratio analysis) rather than
considering an updated modeling analysis.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS:

Factors that could lead to a rating downgrade include: (1) a
deterioration in the performance of the underlying collateral that
results in higher expected losses, (2) lower cash availability and
(3) weakening of the certificates' available credit enhancement.

Factors that could lead to a rating upgrade include: (1) an
improvement in the performance of the underlying collateral that
results in lower expected losses, (2) improved liquidity and (3)
strengthening of the certificates' available credit enhancement.

The period of time covered in the financial information used to
determine Hipotecaria Su Casita BRHSCCB 06-5U & BRHSCCB 06-6U
rating is between August 31, 2006 and January 31, 2020.

RATING METHODOLOGY

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
July 2019.

The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage.

Moody's considered the servicer's practices following the servicing
transfer to Pendulum and considers them adequate.




===============
P A R A G U A Y
===============

PARAGUAY: IDB OKs $90MM Loan to Enforce Government Policies
-----------------------------------------------------------
Paraguay plans to modernize its regulatory framework and strengthen
its government policies designed to move toward the new age economy
with a loan of $90 million approved by the Inter-American
Development Bank (IDB).

This program aims to consolidate public policies reformed designed
to encourage access to digital technology by citizens and the
private sector, as well as promoting digital transformation of
public sector services.

In this sense, the development of the National Information
Technology and Communications Plan will be supported. This plan
will feature a variety of initiatives involving the digital economy
and promotion of information technologies, from supply-oriented
policies aimed at expanding broadband coverage to demand-related
policies linked to information technology competitiveness and
accessibility, as well as electronic government initiatives.  

This project will also support analysis of gender in the
appropriation of digital technologies and a pilot plan will be
designed and carried out to collect disaggregated data by gender on
access to and use of information technology.

The reforms planned will be transversal and are aimed at overcoming
regulatory and institutional limitations to achieve a substantial
improvement in the economy's productivity by digitizing it. The
program will benefit 61 percent (the percentage of Internet users)
of the country's more than seven million people and 20 percent (the
percentage with Internet access) of the country's more than two
million households, which will enjoy higher quality of public and
private digital services with the National Information Technology
and Communications Plan.  

It is also expected that companies located in the same geographic
area as 88 percent of the population covered by 4G networks benefit
from improvements in government digital services.  

Likewise, companies located in the same geographic area as 88
percent of the population covered by 4G networks are expected to
benefit from improvements in the provision of digital government
services.

The IDB loan of $90 million has a repayment term of 20 years, a
grace period of five and a half years, and an interest rate based
on LIBOR.

As reported in the Troubled Company Reporter-Latin America on Dec.
11, 2019,  Fitch Ratings affirmed Paraguay's Long-Term Foreign
Currency Issuer Default Rating at 'BB+' with a Stable Outlook.



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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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