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/raid1/www/Hosts/bankrupt/TCRLA_Public/200316.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, March 16, 2020, Vol. 21, No. 54 Headlines A R G E N T I N A ARGENTINA: Seeks To Restructure $69BB in Foreign-Law Debt B A H A M A S BAHAMAS: S&P Alters Outlook to Negative & Affirms 'BB+/B' SCR B R A Z I L ENGIE BRASIL: Fitch Affirms 'BB' FC IDR, Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Each Dominican Owes US$3,680 DOMINICAN REPUBLIC: Feb Prices Fall -0.13%, Paced by Transport E L S A L V A D O R EL SALVADOR: Moody's Alters Outlook on B3 Issuer Rating to Pos. J A M A I C A JAMAICA: Debt to GDP Projected to Decline to 90.2% P U E R T O R I C O ASCENA RETAIL: Incurs $97.4 Million Net Loss in Second Quarter BAHIA DEL SOL: April 29 Plan Confirmation Hearing Set CHARLOTTE RUSSE: Needs Additional Time to Continue Plan Talks JJE INC: Banco Popular Objects to Disclosure Statement T R I N I D A D A N D T O B A G O CARIBBEAN AIRLINES: Crew Members in Self-Quarantine V E N E Z U E L A PETROLEOS DE VENEZUELA: Government Detains More Than 30 Workers X X X X X X X X [*] BOND PRICING: For the Week March 9 to March 13, 2020 - - - - - ================= A R G E N T I N A ================= ARGENTINA: Seeks To Restructure $69BB in Foreign-Law Debt --------------------------------------------------------- Patrick Gillespie and Jorgelina Do Rosario at Bloomberg News report that Argentina said it intends to restructure as much as $68.8 billion in bonds issued under foreign law, a formal step in negotiations with creditors. It's the first time President Alberto Fernandez's government has explicitly stated the nominal value of debt held by foreign bondholders it plans to restructure, according to Bloomberg News. The two sides are in fast-paced negotiations that Economy Minister Martin Guzman intends to conclude by the end of March, Bloomberg News notes. The midnight government decree came hours after Argentine bonds plunged to record lows amid falling oil prices and coronavirus fears, Bloomberg News says. Argentina's century bond maturing in 2117 -- which the government intends to restructure -- dropped nearly 10% March 9 to 35.4 cents on the dollar, Bloomberg News notes. The spread in yields between Argentine bonds and U.S. Treasuries, a measure of sovereign risk, widened 380 points to 2,789, Bloomberg News discloses. Argentina listed all the bonds it's seeking to restructure with creditors in the decree, but didn't detail the value of each one. Many of the notes were originally issued by the government of Fernandez's predecessor, Mauricio Macri, Bloomberg News relates. The decree also illustrates the complexity of Argentina's restructuring: There are bonds issued in four different foreign currencies, not including its local-law peso debt, Bloomberg News notes. Guzman met with some major investors, including BlackRock Inc. and Pacific Investment Management Co., but hasn't detailed his debt offer or strategy, leaving many in the dark, Bloomberg News says. "It seems like tightly controlled information from within the economic team and market participants only guessing on whether there is no plan or a hidden plan," Siobhan Morden, managing director at Amherst Pierpont Securities, wrote in a note, Bloomberg News relates. Most of the international bonds are under New York law and have collective-action clauses, or CACs, Bloomberg News discloses. Some investors prefer the New York-law bonds because their CACs require a specific percentage of investors to agree to changes on the terms of the payments, while the notes issued under Argentine law don't have these clauses, Bloomberg News says. Argentina's par and discount bonds, which were already restructured during the nation's debt exchanges in 2005 and 2010 with creditors, are among the bonds the government intends to negotiate, Bloomberg News notes. The list did not include Argentina's GDP warrants, which are securities that trigger a payment when Argentina achieves 3% annual economic growth, Bloomberg News says. Fernandez, who took office Dec. 10, has repeatedly said Argentina needs more time to pay back its debt, without revealing details or a broad economic plan to pay down debt, Bloomberg News relates. The economy is expected to contract for the third straight year in 2020 with high unemployment and inflation over 50%, Bloomberg News adds. 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. ============= B A H A M A S ============= BAHAMAS: S&P Alters Outlook to Negative & Affirms 'BB+/B' SCR ------------------------------------------------------------- On March 12, 2020, S&P Global Ratings revised the outlook on The Commonwealth of The Bahamas to negative from stable. At the same time, S&P Global Ratings affirmed its 'BB+/B' sovereign credit ratings and 'BBB-' transfer and convertibility assessment on The Bahamas. Outlook S&P said, "The negative outlook reflects that there is at least a one-in-three chance that we could lower the ratings on the country to 'BB' from 'BB+' over the next 12 months. We believe that slower-than-expected revenue collections and higher spending could cause The Bahamas' fiscal results to deviate from our base-case expectations." Downside scenario S&P said, "We could lower the ratings in the next 12 months if the country's finances deteriorate from our expectations, leading to interest costs exceeding 15% of revenues on a sustained basis. This could result from lower-than-expected revenues, higher borrowing costs, or additional debt. We could also lower the ratings if continued erosion in fiscal results suggests a deterioration in The Bahamas' institutional effectiveness in supporting sustainable public finances and economic growth." Upside scenario Conversely, S&P could revise the outlook to stable over the next 12 months if the country's finances stabilize at sustainable levels, revenue collections are in line with forecasts, and if it foresaw the government's interest burden falling below 15% of revenues on a sustained basis. Rationale S&P said, "The negative outlook reflects our view that the government's debt profile has continued to weaken due to persistent fiscal deficits, leading to additional borrowing. The government's revised borrowing plans following Hurricane Dorian include almost $1.5 billion in additional debt over six years. Hurricane-related spending is the largest contributor to the additional debt; however, a portion is also related to ongoing operating and capital needs, highlighting the challenges facing the government on its path to fiscal sustainability. At the same time, economic headwinds have strengthened recently, including increased risks of a U.S. slowdown and the COVID-19 outbreak, which could have negative implications for government revenues given the importance of tourism to the local economy. Since our last review, the country's debt burden has risen above 50% of GDP, and will rise above 60% when the guaranteed debt of state-owned enterprises (SOEs) is included, putting pressure on our debt assessment. Sustained interest levels above 15% of revenues could put further pressure on this assessment and lead to a downgrade. "Despite the heightened risk of external shocks to The Bahamas' finances and economy, we expect the government will maintain its focus and progress on institutional reforms, including greater transparency and reporting. Our ratings reflect the country's strong institutional foundation, which provides necessary checks and balances that we expect will prevent further erosion in creditworthiness." Flexibility and performance profile: Higher borrowing plans are putting pressure on debt. -- Hurricane-recovery efforts and ongoing structural deficits will weigh on the country's finances. -- Fiscal deficits will propel The Bahamas' net debt burden to close to 60% of GDP. -- Monetary policy will remain constrained by the central bank's commitment to defend the Bahamian dollar peg to the U.S. dollar. Hurricane Dorian made landfall at Abaco and Grand Bahama, two islands in the northern part of The Bahamas, on Sept. 1, 2019. The hurricane severely damaged Abaco, and to a lesser extent, Grand Bahama. Prior to the hurricane, the government had met its annual fiscal consolidation target, which helped mitigate the effects on government finances somewhat. Nevertheless, the damage assessment was substantial, at $2.46 billion, and the government will bear some of the recovery and rebuilding costs, as well as lost revenues. This has led the government to invoke the exceptional circumstance clause of the recently passed Fiscal Responsibility Act, allowing it to postpone its plan to achieve a fiscal deficit of 0.5% of GDP in fiscal 2020/2021 to 2024/2025. The government now expects to borrow almost $1.5 billion to meet rebuilding and other costs, in addition to the previously planned borrowing. S&P said, "Consequently, we now believe debt-to-GDP will rise close to 60% in the next one-two years, and surpass that level when the government-guaranteed debt of SOEs is included, leading to a revised debt assessment. We believe the government would be likely to support this guaranteed debt, which includes the debt of important enterprises including the hospital authority and the national energy company. Although it is not our base-case scenario, if interest expenses should remain above 15% of revenues on a sustained basis, our debt assessment would further weaken and could lead to a downgrade." The government has taken measures to improve finances through increases to the value-added tax, expenditure controls, and planned improvements in tax collections. In 2018/2019, the government met its deficit goal of $212 million or 1.7% of GDP. S&P said, "However, it will depart from its fiscal targets following the hurricane, and we expect deficits will exceed 5% of GDP over the next two years, before falling. For 2020-2023, we expect the average fiscal deficit will be 3.7% of GDP. Thereafter, we expect more moderate deficits and a slower increase in the debt burden." S&P said, "We expect the increase in public sector external borrowing will drive an increase in The Bahamas' external debt. We expect the external debt of the public and financial sectors, net of usable reserves and financial sector external assets, will be about 40.1% of current account receipts (CAR) in 2020. These figures include the government's $1.65 billion in external bonds, but do not include the external debt and foreign direct investment in the islands' substantial tourism sector. "Based on the gross external liabilities of the country's large banking sector, we expect the gross external financial needs of the public and financial sectors will be 285.7% of CAR in 2020. This reflects the still-high current account deficit and the financial sector's high rollover needs. However, we consider the financial sector's external assets highly liquid, which somewhat diminishes liquidity risk. Errors and omissions also contribute to a weak external profile. Errors and omissions were above 14% of CAR in 2018, and tend to fluctuate. These high levels and swings complicate the analysis of the current account deficit financing and the country's overall external balance sheet. We estimate these errors and omissions likely represent underreported foreign direct investment or tourism flows. "The Bahamas' limited monetary and exchange rate flexibility constrains its ability to respond to external shocks. The Bahamian dollar is fixed at par with the U.S. dollar. We expect that the central bank will continue to primarily rely on a combination of interest rates, moral suasion, and macroprudential tools to influence domestic credit growth. The central bank has recently eased access to foreign currency and external financing for entities with foreign currency inflows as a way to stimulate business activity. However, this activity's limited nature and restriction to sectors that generate foreign currency should limit the impact on the country's external accounts. Loss of correspondent banking relationships remains a risk for The Bahamas, as it does for many of the Caribbean sovereigns we rate. Although we do not believe that this trend will threaten the banking sector's ability to roll over its debt, we do think that it could further stress the financial system. We believe this highlights the importance of the central bank's new anti-money laundering (AML)/counter-terrorist financing (CTF) supervision regime, which should strengthen compliance and assist in the maintenance of the system's correspondent banks." Institutional and economic profile: Economic growth remains dependent on tourism, while strong institutions will continue to spur public sector reform. -- Rebuilding efforts following the hurricane will proceed and support economic growth, particularly after 2020. -- S&P expects strong institutions will continue to focus on the government's fiscal responsibility agenda. GDP growth is fueled by tourism, while hurricane-related disruptions weigh on long-term growth. S&P said, "We expect the hurricane pared back the country's economic growth in 2019 to 0.9%, which we expect will be followed by a contraction in 2020. The economy's low GDP per capita growth over the past decade reflects structural challenges that will be difficult to overcome in the near term. This growth is lower than that of peers with similar levels of income. We expect that GDP per capita will be about US$33,600 in 2020, and the 10-year weighted-average real GDP per capita growth will average 0.36%." In 2019, the country welcomed its highest level of visitors, at 7.2 million. Both land and sea arrivals exceeded previous levels and supported government revenues. Visitor numbers remained strong following the hurricane, highlighting the country's ability to attract and absorb visitors to other islands while recovery efforts were underway at Grand Bahama and Abaco. Tourists from the U.S. still account for the majority of arrivals; consequently, a U.S. slowdown remains a risk to The Bahamas. An emerging risk to tourism is the coronavirus, which could affect the high-value stay-over segment as well as cruise ship arrivals. The country's economy remains concentrated in tourism and, consequently, is vulnerable to external risks affecting this sector. Foreign interest in tourist-related developments remains strong in The Bahamas, and should contribute growth and support foreign direct investment. The financial services sector is also important for the Bahamian economy. The central bank estimates that the sector contributes about 15%-20% of GDP. The government is taking steps to improve the international perception of its financial services sector, introducing new legislation aimed at improving its AML/CTF regime. While The Bahamas remains on the Financial Action Task Force's list of countries with strategic deficiencies in its AML/CTF regime, it is taking steps to address them. S&P said, "We believe decisive measures to address international scrutiny of offshore banking in The Bahamas should help stop further contraction in the financial services sector and also lessen pressure on correspondent banking relationships. We expect that limited links between the declining offshore banking sector and the real economy will continue to insulate The Bahamas from the sector's evolution." The direct contribution of the offshore sector to GDP is an estimated 3%, while the sector employs less than 1% of the country's workforce. These values have been relatively stable, despite shifts in asset jurisdiction, over the past several years. S&P said, "We believe The Bahamas benefits from its strong institutions, which allow for proactive policies that should deliver sustainable and balanced economic growth. The government continues to enact policies and legislation in support of its fiscal responsibility mandate, including measures to strengthen public sector finances, improve the transparency and accountability of government, and ease processes for doing business. These measures are encouraging, and support our positive view of The Bahamas' institutional profile. "We expect political stability to continue over the forecast horizon. In our view, the country's political system is characterized by prudent and pragmatic macroeconomic policy across party lines, which provides the country with institutional stability. The leaders of The Bahamian government have alternated between the Free National Movement and the Progressive Liberal Party over several decades, with smooth political transitions. However, a continuation of the long-term decline in public finances could lead us to reassess the country's institutional effectiveness in supporting public sector finances." In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Ratings Score Snapshot above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. Ratings List Ratings Affirmed Bahamas Transfer & Convertibility Assessment BBB- Bahamas Senior Unsecured BB+ Ratings Affirmed; CreditWatch/Outlook Action To From Bahamas Sovereign Credit Rating BB+/Negative/B BB+/Stable/B =========== B R A Z I L =========== ENGIE BRASIL: Fitch Affirms 'BB' FC IDR, Outlook Stable ------------------------------------------------------- Fitch Ratings affirmed Engie Brasil Energia S.A.'s Foreign Currency (FC) and Local Currency (LC) Issuer Default Ratings at 'BB' and 'BBB-', respectively, and its National Scale Rating at 'AAA(bra)'. The Rating Outlook is Stable. Engie Brasil's ratings reflect its prominent market position as the largest private electric energy generation company in Brazil with a sizable and diversified portfolio, operational efficiency and robust operating cash flow generation derived from the existence of long-term power purchase agreements with its clients. The company's credit profile also benefits from a conservative financial profile with historical low leverage and strong financial flexibility to deal with financing needs resulting from investments in new projects and acquisitions. The regulatory risk of the Brazilian power sector is considered as low to moderate, while the hydrology risk is currently above average. Engie Brasil's FC IDR is constrained by Brazil's country ceiling of 'BB', as the company generates all of its revenues in local currency (BRL), with no cash and committed credit facilities abroad. The analysis does not incorporate any potential support from the parent company, Engie S.A. (IDR A/Stable). Fitch also considers the three-notch difference between the company's LC IDR and the sovereign rating as appropriate due to its regulated nature. The Stable Outlook for the FC and LC IDRs follows the same Outlook of Brazil's 'BB-' sovereign rating. Fitch also expects Engie Brasil will be able to sustain its solid consolidated credit profile over the next few years despite a period of higher investment levels, which also supports the Stable Outlook for the National Scale rating. KEY RATING DRIVERS Strong Business Profile: Engie Brasil's ratings benefit from its strong business position in the electric power generation segment. The company is the largest private energy generation company in Brazil, with a total installed capacity of 8,711MW, to be further increased by 361MW to 9,072MW after the conclusion of its last project under development. The company presents a successful track record in its commercial strategy and monthly allocation of its energy capacity, also benefited by the dilution of operational risks obtained through its diversified asset base. The entrance into the transmission segment in 2017 provides further diversification and improves predictability to the operational cash flow. Engie Brasil has 2,800 km in transmission line under development with Permitted Annual Revenues (PAR) of BRL545 million to be completed until 2023. Manageable Negative FCF: Fitch considers that Engie Brasil has financial flexibility to deal with the expected negative FCF for the next couple of years. The base case scenario presents average EBITDAs and cash flow from operations (CFFO) of BRL5.5 billion and BRL4.0 billion in 2020 and 2021, respectively, with negative FCF of around BRL1.3 billion in 2020 and BRL580 million in 2021. EBITDA margin should grow gradually, with 57% in 2020, due to lower energy trading activity and the start-up of transmission lines from 2022 on. High capex of BRL5.2 billion during 2020-2021 period and strong distribution of dividends corresponding to a dividend payout of 100% pressure the FCF, although Fitch considers that there is certain flexibility in the dividends pay-out to maintain strong credit metrics. Fitch assumed energy sales of 5.8 average GW and 5.3 average GW in 2020 and 2021, with average tariffs of BRL210/MWh and BRL218/MWh, excluding sales at the spot market and quota regime for the latest. Moderate Exposure to Hydrological Risk: Fitch estimates that the company's uncontracted energy level at 13% in 2020 and 12% in 2021 is sufficient to support the Generating Scaling Factor (GSF) in these years, considered at 0.83 on average for this period. This scenario mitigates the company's exposure to energy prices in the spot market (PLD) of BRL171/MWh incorporated in the base case scenario. Engie Brasil must be efficient in getting power purchase contracts at prices compatible with those established in the sales contracts or in maintaining uncontracted energy to cover the reduction of its own generation. Engie Brasil has some protection against hydrological risk in sales contracts within the regulated market, which represents about 40% of the energy sold, limiting the exposure to 9%. Conservative Leverage to Remain: Fitch's base case estimates Engie Brasil's net debt to adjusted EBITDA and net debt to FFO around 2.1x and 2.5x, respectively, in 2020 and 2021. These ratios are still conservative for the IDRs, although show some increase compared with 1.7x and 1.9x on average, respectively, in the last three years, due to new debt raised to finance acquisitions (BRL3.5 billion in two hydroelectric power plants in 2017 and another BRL3.5 billion in Transportadora Associada de Gas S.A. -TAG in 2019) and investments in greenfield projects. Fitch's base case scenario already incorporates another acquisition of BRL410 million concluded in March 2020 with an associated investment of around BRL2.0 billion during the construction phase in 2020 and 2021. DERIVATION SUMMARY Engie Brasil's FC IDR of 'BB'/Stable is three notches below peers in Latin America, such as Emgesa (BBB/Stable), the second largest generation company in Colombia, and Engie Chile (BBB/Positive), the fourth largest generator in Chile, primarily as a result of the Brazilian country ceiling at 'BB'. Emgesa and Engie Chile benefit from a better economic environment in investment grade countries. Engie Brasil's 'BBB-'/Stable LC IDR is more comparable with these 'BBB' rated peers. Fitch considers the three-notch difference between the company's LC IDR and the sovereign rating appropriate due to the regulated nature of the business. All three companies benefit from strong business profile, with Engie Brasil's installed capacity being the largest among them, although the energy mix of Engie Chile differs from the related company in Brazil and Emgesa. Engie Brasil and Emgesa are more exposed to hydrological conditions, while Engie Chile needs to deal with the coal and natural gas prices volatility. All the companies have predictable and robust cash flow generation since they have managed business risks properly, but Engie Brasil has a stronger financial profile. KEY ASSUMPTIONS Fitch's Key Assumptions Within the Rating Case for the Issuer Include - GSF of 0.83 in 2020 and 2021; - Capex of BRL5.0 billion from 2020 to 2021; - Operating expenses adjusted by inflation; - Distribution payout of 100%; - Absence of asset sale and new acquisitions besides Novo Estado and the greenfield projects under construction; - Acquisition of UHE Jirau not considered until 2023. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action - An upgrade is unlikely in the near term because the Foreign Currency IDR is constrained by the country ceiling (BB) and the Local Currency IDR is limited to three notches above the sovereign rating (BB-). Developments That May, Individually or Collectively, Lead to Negative Rating Action - Sizable investments or acquisitions currently out of Fitch's base case that could lead to net leverage consistently above 3.5x; - FFO-adjusted net leverage above 4.0x on a sustainable basis; - Total debt/dividends received over 3.0x and net debt/dividends received over 2.0x at the holding level; - Difficulties in financing the capex plan through project finance debts; - A downgrade of the sovereign rating would trigger another downgrade of Engie Brasil's IDRs. LIQUIDITY AND DEBT STRUCTURE High Financial Flexibility: Engie Brasil's consolidated liquidity is robust with no concentration on the short-term debt maturities. As of December 2019, cash and marketable securities of BRL4.2 billion was significantly above the short term debt of BRL2.7 billion. The high cash balance will be partially used to finance the negative FCF for the next two years, when the group will still need to raise new debt. Engie Brasil's ample access to debt and capital markets benefits the group to raise alternatives funding with structure adequate to project finance and maintaining a well-balanced debt maturity profile. As of December 2019, Engie Brasil's total debt of BRL14.4 billion was mainly composed of debentures (BRL6.0 billion) and BNDES (BRL4.3 billion). 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). =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Each Dominican Owes US$3,680 ------------------------------------------------ Dominican Today reports that the National Statistics Office (ONE) estimates Dominican Republic's population at 10,448,499 people this year and each person owes US$3,680 as their share of the debt contracted by the government. The debt of the non-financial public sector (SPNF) reached a record US$38.45 billion last January, according to figures from the Directorate of Public Credit, according to Dominican Today. The amount of the SPNF loan commitments, in which the Central Bank debt isn't included, represents for each citizen a debt of around US$3,680, or RD$197,490 at the current rate, 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: Feb Prices Fall -0.13%, Paced by Transport -------------------------------------------------------------- Dominican Today reports that February prices fell 0.13% compared to January, placing accumulated inflation in the first two months at 0.20%, the Dominican Central Bank affirmed on its website. It said year-on-year inflation from February 2019 to February 2020, reached 3.66%, "reaching below the center of the target range of 4.0% ± 1.0% established in this year's monetary program," according to Dominican Today. It adds that transport (-1.13%) was the group which most contributed to the decline in February prices. 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). ===================== E L S A L V A D O R ===================== EL SALVADOR: Moody's Alters Outlook on B3 Issuer Rating to Pos. --------------------------------------------------------------- Moody's Investors Service changed the outlook on the Government of El Salvador's ratings to positive from stable. Concurrently, Moody's has affirmed the B3 issuer and long-term senior unsecured debt ratings. The key factors driving the change in outlook are: 1. Materially reduced government liquidity risks 2. Improved business conditions that could lift private investment and economic growth The affirmation of El Salvador's B3 sovereign ratings reflect high government debt ratios and a rising interest burden, as well as its view that El Salvador's institutions remain weak, given low fiscal policy effectiveness, in relation to its fiscal responsibility law, and weak rule of law. Persistent domestic security challenges as well as a history of political confrontations between the executive and legislative branches are incorporated into the current rating. El Salvador's B3 ratings also reflect economic dependence on remittances and low-value added exports to the US. Dollarization eliminates the risk of exchange rate shocks to the government balance sheet, but limits the authorities' policy options. The long-term foreign-currency bond ceiling and the long-term foreign-currency deposit ceiling remain unchanged at B1. The short-term foreign currency bond and deposit ceilings remain at Not Prime. RATINGS RATIONALE RATIONALE FOR THE POSITIVE OUTLOOK FIRST DRIVER: MATERIALLY REDUCED GOVERNMENT LIQUIDITY RISKS The new administration was able to secure the necessary votes in the legislative assembly to pass its budget proposal last December and also to contract long-term debt to fund this year's fiscal deficit. This was a significant development since President Nayib Bukele, who took office in June 2019, has only a small party representation in the legislative assembly and a two-thirds majority vote is required to secure long-term financing. For three consecutive years (2018-20), under two different administrations, the executive and the legislative branches have demonstrated they can work together to approve fully-funded budgets. In the past, animosity and political differences prevented parties from reaching agreements that were required to authorize budgets and long-term financing. This condition led to increased liquidity risks as it forced the government to issue higher amounts of short-term debt (LETES), prioritize payments and ultimately tested local banks' capacity to absorb rising levels of LETES. Government liquidity risks are now significantly lower as the government is able to issue long-term debt in global financial markets and, consequently, has a reduced need to rely on LETES for budget financing. LETEs have hovered around $800-900 million for two years, although they reached $1 billion this January. Additionally, El Salvador faces a relatively benign debt amortization schedule over the next few years with not large debt payments coming due until 2023. Long-term debt amortizations will amount to about $500 million (1.8% of GDP) annually in 2020-22 and will increase in 2023 with a $1.1 billion (4.0% of GDP) Eurobond payment coming due that year. SECOND DRIVER: IMPROVED BUSINESS CONDITIONS THAT COULD LIFT PRIVATE INVESTMENT AND ECONOMIC GROWTH El Salvador's relatively weak economic growth over the past decade, with GDP increasing at an average annual rate of 2.4% in 2010-19, is in part attributable to low investment rates which at 15% of GDP in 2010-19 compare with the B-rated median of 23%. The new administration has taken steps to jumpstart private investment. In addition to improved dialogue with the business community, the authorities have reduced red tape and regulatory bottlenecks in order to improve business conditions. The government set up a new ministry dedicated to facilitate private sector investment, a decision that denotes an attitude which is in stark contrast with the approach followed by previous administrations. The administration has also placed special attention in taking action to improve security. With evidence indicating that progress has been made on this front, this has been a key consideration behind companies decisions to conduct business in areas that were previously off limits. If these initiatives are maintained, the ensuing positive momentum could support higher investment levels in the coming years contributing to lift growth above El Salvador's current 2% potential growth rate. RATIONALE TO AFFIRM B3 RATINGS The recommendation to affirm the B3 ratings takes into account an economy with relatively low GDP growth rates, dependent on remittances and low-value added exports to the US, in addition to historically low levels of investment. High government debt ratios and a rising interest burden are also important parts of its rating assessment. While the fiscal deficit has gradually narrowed since 2014, reflecting improvements in the primary balance, adverse fiscal trends do not support debt stabilization. The government's interest bill has risen considerably as a result of a growing debt stock, increased reliance on high-yield short-term instruments (LETES) and high risk premia. Although interest rates on LETES have fallen, Moody's expects interest paid on pension-related debt to increase over the next few years. The B3 rating also reflects its view that El Salvador's institutions remain weak, given low fiscal policy effectiveness, with weak compliance to their fiscal responsibility law, rule of law and security challenges and a history of political confrontations between the executive and legislative branches that in the future could prevent progress on needed reforms to address economic and fiscal challenges. ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS Moody's takes account of the impact of environmental (E), social (S), and governance (G) factors when assessing sovereign issuers' economic, institutional and fiscal strength and their susceptibility to event risk. In the case of El Salvador, the materiality of ESG to the credit profile is as follows. El Salvador is significantly exposed to Environmental Risks, as its geography is dominated by a region known as the Dry Corridor, characterized by recurrent drought and heavy precipitation events that lead to flooding and landslides. The steady rise in frequency and severity of drought and other climate-related shocks pose a threat to the country's agriculture sector, which employs 21% of the country's population. As such, weather events can significantly influence El Salvador's key credit metrics, such as GDP growth volatility, household incomes and agricultural export earnings. Social risks also inform El Salvador's credit profile. El Salvador's homicide rate is one of the highest in the Western Hemisphere and is emblematic of the country's weak domestic security, a key driver behind significant out-migration of its residents to the US. While remittances from foreign nationals supports economic activity, high levels of violence and insecurity stunt the country's investment levels, productivity and long-term growth potential. In terms of governance, El Salvador exhibits low scores on institutional factors, as measured by the Worldwide Governance Indicators, with rule of law representing the country's most significant challenge. WHAT COULD CHANGE THE RATING UP Upward pressure on El Salvador's credit profile could emerge if, despite transient episodes of political tension, there is continued evidence that the executive and legislative branches are able to establish a working relationship that prevents an escalation of government liquidity risks as experienced in the past. Evidence that medium-term growth prospects are improving with economic activity reporting annual rates above El Salvador's current potential growth of 2% would also support ratings upward movement. A period of up to 18 months may be needed to assess these conditions as well as the credit impact of an evolving political landscape on government liquidity risks. WHAT COULD CHANGE THE RATING DOWN Downward pressure on the credit profile would emerge if there were a return of political confrontations that constrained government access to long-term financing, potentially compromising the refinancing of upcoming debt maturities. Signs that fiscal trends will continue to deteriorate and debt metrics will continue to rise steadily would also strain El Salvador's credit profile. GDP per capita (PPP basis, US$): 8,041 (2018 Actual) (also known as Per Capita Income) Real GDP growth (% change): 2.5% (2018 Actual) (also known as GDP Growth) Inflation Rate (CPI, % change Dec/Dec): 0.4% (2018 Actual) Gen. Gov. Financial Balance/GDP: -2.7% (2018 Actual) (also known as Fiscal Balance) Current Account Balance/GDP: -4.8% (2018 Actual) (also known as External Balance) External debt/GDP: 63.9% (2018 Actual) Economic resiliency: ba3 Default history: No default events (on bonds or loans) have been recorded since 1983. On March 10, 2020, a rating committee was called to discuss the rating of the Government of El Salvador. The main points raised during the discussion were: The issuer has become less susceptible to event risks. Other views raised included: The issuer's economic fundamentals, including its economic strength, have not materially changed. The issuer's institutions and governance strength, have not materially changed. The principal methodology used in these ratings was Sovereign Ratings Methodology published in November 2019. ============= J A M A I C A ============= JAMAICA: Debt to GDP Projected to Decline to 90.2% -------------------------------------------------- RJR News reports that Jamaica Finance Minister Dr. Nigel Clarke says Jamaica's debt to GDP ratio is projected to decline to 90.2% at the end of this financial year. This is down from 145% seven years ago, according to RJR News. During his budget debate presentation, Dr. Clarke highlighted that this was achieved without debt write-off or debt forgiveness, the report relates. The fiscal policy paper projects that Jamaica's debt will fall to 87.5% by the end of the 2020/21 fiscal year, 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. ===================== P U E R T O R I C O ===================== ASCENA RETAIL: Incurs $97.4 Million Net Loss in Second Quarter -------------------------------------------------------------- Ascena Retail Group, Inc., filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $97.4 million on $1.21 billion of net sales for the three months ended Feb. 1, 2020, compared to a net loss of $71.5 million on $1.27 billion of net sales for the three months ended Feb. 2, 2019. For the six months ended Feb. 1, 2020, the Company reported a net loss of $65.7 million on $2.33 billion of net sales compared to a net loss of $65.6 million on $2.42 billion of net sales for the six months ended Feb. 2, 2019. As of Feb. 1, 2020, the Company had $3.07 billion in total assets, $2.99 billion in total liabilities, and $76.6 million in total equity. Gary Muto, chief executive officer of Ascena commented, "For the second quarter, we are pleased to have exceeded our adjusted operating income expectations for the third consecutive quarter, resulting from better gross margin performance and continued cost reduction efforts. We continue to work toward delivering sustainable growth by leveraging our customer analytics and insights, placing the customer at the center of everything we do. We are confident that the work we are doing now sets us up to provide consistent profitable performance and enhance shareholder value over the longer term." Carrie Teffner, interim executive chair of ascena commented, "During the second quarter we made solid progress on our commitment to simplify the business and focus on fewer and more meaningful initiatives. With respect to our portfolio review, we have made great progress. In addition to the sale of our majority interest in maurices, we successfully completed the wind down of the Dressbarn business in February. As it pertains to our previously discussed brand review, we currently have no active conversations. As such, we are proceeding with a clear focus on our Premium, Plus and Kids segments by driving brand strategies which ensure long-term relevance and differentiation, while streamlining our back-end functionality to improve efficiency and profitability. Our Board and management team remain committed to taking proactive steps to position ascena for long-term success and will continue to evaluate opportunities that create shareholder value." Gross margin decreased to $635 million from $660 million, driven by the net sales decline, partially offset by the gross margin rate improvement to 52.2% of sales, for the second quarter of Fiscal 2020, compared to 51.9% of sales in the year-ago period. The increase in gross margin rate from the second quarter last year was primarily due to increased margins at the Company's Premium Fashion and Plus Fashion segments, reflecting decreased promotional activity. Those increases were partially offset by higher promotional activity at the Company's Kids Fashion segment to clear excess inventory. Buying, distribution, and occupancy expenses for the second quarter of Fiscal 2020 decreased 10% to $220 million, which represented 18.1% of sales, compared to $245 million, or 19.3% of sales in the year-ago period. In terms of dollars, the reduction in expenses was driven by lower occupancy expenses and lower employee-related costs, both resulting primarily from our continued cost reduction efforts, as well as amounts received under the transition services agreement with maurices. Selling, general, and administrative expenses for the second quarter of Fiscal 2020 decreased 3% to $382 million, or 31.4% of sales, compared to $394 million, or 31.0% of sales in the year-ago period. The decrease in SG&A expenses was primarily due to the Company's cost reduction initiatives, mainly reflecting lower store-related expenses, lower headcount as well as non-merchandise procurement savings. SG&A expenses were also lower due to amounts received under the transition services agreement with maurices. Operating results Operating loss for the second quarter of Fiscal 2020 was $140 million compared to a loss of $64 million in the year-ago period, and primarily reflects the goodwill and intangible asset impairments and the gross margin dollar declines, offset in part by the expense reductions. Excluding the impairment charges and restructuring costs, operating loss for the quarter was $31 million. For the second quarter of Fiscal 2020, the Company recorded a tax provision of $1 million on a pre-tax loss of $135 million. The effective tax rate of (0.7)% was lower than the statutory tax rate as a result of non-deductible goodwill impairment charges and changes in the valuation allowance on U.S. federal and state deferred tax assets. The Company reported a net loss from continuing operations of $132 million, or $13.22 per diluted share in the second quarter of Fiscal 2020, compared to a Net loss from continuing operations of $81 million, or $8.20 per diluted share, in the year-ago period. Fiscal Second Quarter Balance Sheet Highlights The Company ended the second quarter of Fiscal 2020 with cash and cash equivalents of $374 million, up from $324 million at the end of the fourth quarter of Fiscal 2019. The Company ended the second quarter of Fiscal 2020 with inventory of $488 million, down 5% from the year-ago period. Capital expenditures for the second quarter of Fiscal 2020 totaled $17 million, compared to $30 million in the year-ago period. The Company ended the second quarter of Fiscal 2020 with total debt of $1,292 million, which represents the balance remaining on the term loan. The reduction from the $1,372 million outstanding as of the end of the fourth quarter of Fiscal 2019 reflects the open market repurchases made during the second quarter of Fiscal 2020 whereby the Company repurchased approximately $80 million of aggregate principal for a total purchase price of approximately $49 million. Additionally, subsequent to the second quarter of Fiscal 2020, the Company completed an additional repurchase of approximately $42 million of aggregate principal for a total purchase price of approximately $29 million. There were no borrowings outstanding under the Company's revolving credit facility at the end of the second quarter of Fiscal 2020 and the Company had $247 million of borrowing availability under its revolving credit facility. The Company is not required to make its next quarterly term loan payment of $22.5 million until November of calendar 2020. Fiscal Year 2020 Third Quarter and Full Year Outlook The Company's guidance does not reflect potential impacts from the Coronavirus situation. The Company is providing guidance for the third quarter of Fiscal 2020 for the consolidated continuing operations of the Premium Fashion, Plus Fashion, and Kids Fashion segments as follows: - Net sales of $1.050 to $1.080 billion; - Comparable sales of negative low single digits; - Gross margin rate of 57.8% to 58.3%; - Depreciation and amortization of approximately $60 million; and - Adjusted operating loss of $10 million to $30 million. In addition, for the full year, the Company continues to expect that total capital spending will be between $80 million and $100 million, which represents a significant decrease compared to prior years. A full-text copy of the Form 10-Q is available for free at: https://is.gd/J4uoHv About Ascena Retail Ascena Retail Group, Inc. (Nasdaq: ASNA) -- http://www.ascenaretail.com-- is a national specialty retailer offering apparel, shoes, and accessories for women under the Premium Fashion (Ann Taylor, LOFT, and Lou & Grey), Plus Fashion (Lane Bryant, Catherines and Cacique), and Value Fashion (Dressbarn) segments, and for tween girls under the Kids Fashion segment (Justice). Ascena, through its retail brands, operates ecommerce websites and approximately 2,800 stores throughout the United States, Canada, and Puerto Rico. Ascena Retail reported a net loss of $661.4 million for the fiscal year ended Aug. 3, 2019, a net loss of $39.7 million for the year ended Aug. 4, 2018, and a net loss of $1.06 billion for the year ended July 29, 2017. * * * As reported by the TCR on Nov. 26, 2019, S&P Global Ratings lowered its issuer credit rating on Mahwah, N.J.-based women's specialty apparel retailer Ascena Retail Group Inc. to 'CCC' from 'CCC+' to reflect the rating agency's belief that it is increasingly likely the company will pursue a debt restructuring over the next 12 months. In October 2019, Moody's Investors Service downgraded Ascena Retail Group, Inc.'s corporate family rating to Caa2 from B3, probability of default rating to Caa2-PD from B3-PD and senior secured term loan rating to Caa2 from B3. The downgrades reflect Moody's view that Ascena's capital structure is likely unsustainable as a result of its weak operating performance, high leverage, and negative free cash flow, creating an elevated risk of a debt restructuring including a material debt repurchase at a significant discount. BAHIA DEL SOL: April 29 Plan Confirmation Hearing Set ----------------------------------------------------- On Feb. 12, 2020, the U.S. Bankruptcy Court for the District of Puerto Rico conducted a hearing to consider the Disclosure Statement referring to a Chapter 11 Plan filed by Debtor Bahia Del Sol Hotel Corporation. On Feb. 25, 2020, Judge Brian K. Tester ordered that: * The Disclosure Statement be and is hereby approved. * The debtor and parties in interest may now solicit acceptances or rejections of the Debtor's Plan of Reorganization. * The approved Disclosure Statement and the Plan referred to in the same are to be circulated to all parties. * Any objection to confirmation of the plan shall be filed on/or before seven days prior to the date of the hearing on confirmation of the Plan. * The debtor shall file with the Court a statement setting forth compliance, the acceptances and rejections, and the computation of the same, within seven working days before the hearing on confirmation. * April 29, 2020 at 2:00 PM at the Jose V. Toledo, Federal Building & U.S. Courthouse, Courtroom No. 1, Second Floor, 300 Del Recinto Sur Street, Old San Juan, Puerto Rico is the hearing for the consideration of confirmation of the Plan. A full-text copy of the order dated Feb. 25, 2020, is available at https://tinyurl.com/su3b6mq from PacerMonitor at no charge. About Bahia Del Sol Corporation Bahia Del Sol Hotel Corporation filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 19-03234) on June 5, 2019, estimating under $1 million in both assets and liabilities. The Debtor tapped Noemi Landrau Rivera, Esq., at Landrau Rivera & Assoc., as counsel. CHARLOTTE RUSSE: Needs Additional Time to Continue Plan Talks ------------------------------------------------------------- CR Holding Liquidating Inc. and its affiliates ask the U.S. Bankruptcy Court for the District of Delaware to further extend the exclusive periods during which they can file a chapter 11 plan and solicit acceptances of such plan for approximately 90 days through and including June 1 and July 27, respectively. The extensions are sought to continue to negotiate a plan that will have the support of the Committee and all voting classes. The Debtors have already conducted and concluded multiple sale processes -- including the separate sales of the intellectual property related to each of the "Charlotte Russe" and "Peek" brands. Subsequently, the Debtors have worked, and continue to work diligently with the multiple parties, including their remaining secured creditors, prepetition lenders, and the Committee to negotiate terms of a plan of liquidation, which the Debtors believe will provide the framework for the ultimate disposition of these chapter 11 cases. Furthermore, since the sales, the Debtors have commenced and continued working to resolve a large number of actions to avoid and recover certain preferential or fraudulent transfers. About Charlotte Russe Holding Charlotte Russe Holding, Inc., now known as CR Holding Liquidating Inc., is a specialty fashion retailer of young women's apparel and accessories comprised of seven entities. The company and its affiliates are headquartered in San Diego, California and have one distribution center located in Ontario, California. In addition, the companies lease office space in Los Angeles, California and San Francisco, California, where they primarily conduct merchandising, marketing, e-commerce and technology functions. The companies sell their merchandise to customers in the contiguous 48 states, Hawaii, and Puerto Rico through their online store and 512 Charlotte Russe brick-and-mortar stores located in various regional malls, outlet centers, and lifestyle centers. The bulk of the companies' apparel and accessory products are sold under the Charlotte Russe brand with ancillary brands for denim and perfume (Refuge), young women's plus-size apparel (Charlotte Russe Plus), and cosmetics (Charlotte by Charlotte Russe). Charlotte Russe Holding and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 19-10210) on Feb. 3, 2019. At the time of the filing, Charlotte Russe Holding estimated assets of $100 million to $500 million and liabilities of $100 million to $500 million. The cases are assigned to Judge Laurie Selber Silverstein. The Debtors tapped Bayard, P.A. and Cooley LLP as their bankruptcy counsel; Guggenheim Securities, LLC as their investment banker; A&G Realty Partners, LLC as lease disposition consultant and business broker; Gordon Brothers Retail Partners LLC, Hilco Merchant Resources LLC and Malfitano Advisors, LLC as liquidation consultant; and Donlin, Recano & Company, Inc., as claims and noticing agent. JJE INC: Banco Popular Objects to Disclosure Statement ------------------------------------------------------ Banco Popular de PR - Special Loans objects to the Amended Disclosure Statement filed by debtor JJE Inc. * The Disclosure Statement is missing important information that is essential to a creditor's evaluation of the Plan, therefore making it impossible for a creditor to determine whether it willvote for or against the Plan. * Information relating to the source and application of funds to effectuate the proposed plan of reorganization should appear in the disclosure statement, including an estimate of the amounts necessary for the initial payments under the Plan. * However, in case of default, the treatment for general unsecured creditors limits the collection only to past due payments, not the entire amount of the modified debt. * The Disclosure Statement should include a payment schedule in order to determine the actual monthly installments to be received by each creditor. Currently, the Disclosure Statement does not allow to determine when and how much each creditor is going to be paid in a monthly basis. * The Disclosure Statement does not seem to appear to expressly inform when payments to general unsecured creditors will begin. A payment schedule should aid creditors to determine when the Debtor should commence making payments. A full-text copy of Banco Popular's objection dated Feb. 28, 2020, is available at https://tinyurl.com/up3h5c2 from PacerMonitor at no charge. Banco Popular is represented by: EDUARDO M. VERAY LOPEZ, ESQ. BANCO POPULAR PR-SPECIAL LOANS E-mail: eduardo.veray@popular.com About JJE Inc. JJE, Inc., is a home health care services provider based in Manati, Puerto Rico. JJE, Inc., filed a Chapter 11 petition (Bankr. D.P.R. Case No.19-02034) on April 12, 2019, and is represented by Victor Gratacos Diaz, Esq., in Caguas, Puerto Rico. In the petition signed by Jenny Olivo, president, the Debtor disclosed $295,244 in total assets and $1,953,718 in total liabilities. ===================================== T R I N I D A D A N D T O B A G O ===================================== CARIBBEAN AIRLINES: Crew Members in Self-Quarantine --------------------------------------------------- Caribbean360.com reports that Caribbean Airlines Limited said 13 crew members are in self-quarantine for two weeks, following confirmation that a passenger had tested positive for the novel Coronavirus (COVID-19) in Guyana. The 52-year-old woman died earlier, becoming the region's first COVID-19-related death, according to Caribbean360.com. She had travelled on March 7 on Caribbean Airlines flight BW521 from John F. Kennedy, International Airport, New York to Piarco International Airport, Trinidad in transit to the Cheddi Jagan International Airport in Guyana, the report notes. "Caribbean Airlines assures all stakeholders that the safety, security and good health of its customers and employees is its highest priority and when the information on the passenger was received, immediate action was taken," the Trinidad and Tobago-owned carrier said in a statement obtained by the news agency. "In accordance with established protocols the Public Health Authorities have advised that as a precaution, the 13 crew members associated with the flights be placed on self-quarantine for a period of 14 days. This was done, and the employees will be assessed and monitored by the Public Health Authorities in keeping with the directives from the Ministry of Health," the report relays. The airline added that the Public Health Authorities are also contacting all persons who may possibly have been affected. In addition to the daily cleaning at all ports in keeping with industry standards, CAL said, additional sanitization processes were used as outlined by the regulatory authorities, the report notes. It assured all stakeholders that it continues to actively monitor and respond to the evolving COVID-19 issue to ensure the safety and good health of its customers and employees, the report discloses. Meantime, the Cheddi Jagan International Airport has adopted a watch list of 15 countries from where passengers will be flagged before entering the country, the report relates. These countries include China, Singapore, Malaysia, Thailand, Italy, Iran, France, Germany, Spain, United States, and Jamaica, the report adds. About Caribbean Airlines Caribbean Airlines Limited - http://www.caribbean-airlines.com/- provides passenger airline services in the Caribbean, South America, and North America. The company also offers freighter services for perishables, fish and seafood, live animals, human remains, and dangerous goods. In addition, it operates a duty free store in Trinidad. Caribbean Airlines Limited was founded in 2006 and is based in Piarco, Trinidad and Tobago. As reported in the Troubled Company Reporter-Latin America on November 2, 2015, RJR News said that Michael DiLollo, Chief Executive Officer of Caribbean Airlines Limited, quit after just 17 months on the job. The 48-year-old Canadian national, citing personal reasons, resigned with immediate effect. His resignation was accepted by the airline's board of directors. Mr. DiLollo was appointed Caribbean Airlines CEO in May 2014, following the sudden resignation of Robert Corbie in September 2013. In early February 2015, Larry Howai, then Finance Minister, told Parliament that unaudited accounts for 2014 showed the airline made a loss of US$60 million, inclusive of its Air Jamaica operations, and the airline planned to break even by 2017. Mr. Howai told the Parliament that a five-year strategic plan had been completed and was in the process of being approved for implementation. In an interview with the Trinidad & Tobago Guardian in early November 2015, Mr. DiLollo said CAL did not need a bailout just yet. Mr. DiLollo said the airline had benefited from extremely patient shareholders for years and he believed the airline was strategically positioned to break even in three years. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Government Detains More Than 30 Workers --------------------------------------------------------------- Deisy Buitrago and Vivian Sequera at Reuters report that at least 38 workers from Venezuela's state oil company Petroleos de Venezuela, including the president of maritime subsidiary PDV Marina, were detained on accusations of trafficking fuel, Venezuelan Interior Minister Nestor Reverol said, describing the accusations as "treason." The move comes just days after other state officials were detained and amid a shakeup at PDVSA after President Nicolas Maduro last month named a committee to restructure the OPEC nation's oil industry, which is struggling under U.S. sanctions designed to force Maduro's ouster, as well as years of mismanagement, corruption, and declining cash flow, according to Reuters. The president of PDV Marina, Oswaldo Vargas, was escorted without handcuffs from the Caracas headquarters of the country's maritime authority, the INEA, by agents from Venezuela's military intelligence agency DGCIM, six sources confirmed to Reuters. In addition to Vargas, agents also detained his assistant, six members from the Paraguana refinery's dispatch service and 30 crew members from PDV Marina's "Negra Hipolita" tanker, the minister said during a live broadcast on state television, the report relays. Reverol did not say whether the entire group was taken into custody, nor their current whereabouts, the report notes. "This is not simply an act of diverting fuel, it is also an act of treason (. . .) because people are lining up at service stations for fuel because of U.S. empire's sanctions," Reverol added, the report notes. He said they learned about the case from oil workers and DGCIM agents, the report discloses. "We had been denouncing that Oswaldo Vargas used oil tankers for fuel trafficking," Eudis Girot, one of the executives of the country's oil workers federation, told Reuters. According to Reverol's account, the Negra Hipolita ship left Paraguana on March 5 loaded with 126,000 barrels of fuel bound for the port of La Guaira, near Caracas, but allegedly turned off the radar and GPS system, the report says. The ship allegedly changed course to sail between Venezuela and the Netherlands Antilles, "where they illegally sold hydrocarbons to unknown individuals through a transfer operation to a vessel with a "Colombian flag," said the state television news anchor, without offering other details, the report notes. Cesar Vladimir Romero Salazar assumed the presidency of PDV Marina, according to a March 6 official gazette, the report relays. Law enforcement authorities arrested two managers in the PDVSA trade and supply division after being accused of collaborating with Washington, the report recalls. The government also has moved to seize the assets of six private shipping agents over debt owed to PDVSA, the report notes. In addition, the head of the lubricants division of PDVSA was arrested on allegations of corruption, the report says. Hundreds of arrests and investigations for corruption and mismanagement in the oil industry have been carried out in recent years under the command of Major General Manuel Quevedo, president of PDVSA and oil minister, the report relates. The investigations have contributed to the massive departure of personnel that affects the state, the report adds. About PDVSA Founded in 1976, Petroleos de Venezuela, S.A. (PDVSA) is the Venezuelan state-owned oil and natural gas company, which engages in exploration, production, refining and exporting oil as well as exploration and production of natural gas. It employs around 70,000 people and reported $48 billion in revenues in 2016. As reported in Troubled Company Reporter-Latin America on June 3, 2019, Moody's Investors Service withdrew all the ratings of Petroleos de Venezuela, S.A. including the senior unsecured and senior secured ratings due to insufficient information. At the time of withdrawal, the ratings were C and the outlook was stable. Citgo Petroleum Corporation (CITGO) is Venezuela's main foreign asset. CITGO is majority-owned by PDVSA. CITGO is a United States-based refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. However, CITGO formally cut ties with PDVSA at about February 2019 after U.S. sanctions were imposed on PDVSA. The sanctions are designed to curb oil revenues to the administration of President Nicolas Maduro and support for the Juan Guaido-headed party. =============== X X X X X X X X =============== [*] BOND PRICING: For the Week March 9 to March 13, 2020 -------------------------------------------------------- Issuer Name Cpn Price Maturity Country Curr ----------- --- ----- -------- ------- --- 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 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 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. 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