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

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

          Thursday, March 26, 2020, Vol. 21, No. 62

                           Headlines



B R A Z I L

AGENCIA BRASILEIRA: Moody's Cuts IFS Ratings to 'B2'
BRAZIL: IBOVESPA Cuts Losses to 12% & Pulls Away From Second Halt
GOL LINHAS: Discloses Actions to Address Impact of Covid-19
GOL LINHAS: To Suspend All International Flights March 23-June 30
ODEBRECHT SA: Closes Agreement for BRL50 Billion Debt to Banks



C H I L E

ENJOY SA: Fitch Cuts IDR to 'B' & Places Rating on Watch Neg.


D O M I N I C A N   R E P U B L I C

[*] DOMINICAN REPUBLIC: Farms Can Feed 'Entire Population'


E L   S A L V A D O R

BANCO AGRICOLA: Fitch Affirms LT IDR at 'B', Outlook Stable
BANCO DAVIVIENDA: Fitch Affirms LT IDR at 'B', Outlook Stable


J A M A I C A

JAMAICA: Investors in Equities Market Urged Not to Panic


M E X I C O

GRUPO KALTEX: Fitch Affirms LT IDR at 'CC'
GRUPO POSADAS: Fitch Downgrades LT IDR to 'CCC+'
TV AZTECA: Fitch Cuts LT IDR to 'B' & Alters Outlook to Neg.


P U E R T O   R I C O

ADVANCE PAIN: Gets 45-Day Extension to File Plan & Disclosures
WESTERN HOST: Unsecureds to Receive Nothing Under Liquidating Plan


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Oil Terminal Seized Over Payment Dispute


X X X X X X X X

[*] Fitch Downgrades Four Latin American Energy Corporates
[*] Fitch Takes Action on Latin American Airlines

                           - - - - -


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B R A Z I L
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AGENCIA BRASILEIRA: Moody's Cuts IFS Ratings to 'B2'
----------------------------------------------------
Moody's Investors Service downgraded Agencia Brasileira Gestora de
Fundos Garantidores e Garantias S.A.'s global local-currency
insurance financial strength rating to B2 from B1 and downgraded
the company's Brazilian national scale IFS rating to Ba1.br from
Baa1.br. In the same rating action, Moody's downgraded Fundo
Garantidor de Infraestrutura's GLC IFS rating to B1 from Ba3 and
downgraded its NS IFS rating on Brazilian national scale to Baa1.br
from the A1.br. The ratings of ABGF and FGIE carry a stable
outlook. Moody's will subsequently withdraw all ratings.

RATINGS RATIONALE

ABGF's rating downgrade to B2 reflects the decrease in Brazilian
government support provided to the entity, following the
government's announcement to privatize or liquidate the entity.
According to Moody's, ABGF's B2 IFS rating considers Moody's joint
default analysis for the company as a government-related issuer and
therefore, it incorporates its assumptions for low support and very
high dependence levels from the government of Brazil (Ba2 stable).
ABGF's baseline credit assessment (BCA) of b2 reflects the
company's credit profile on a stand-alone basis, which considers
the company's lack of operational history, as well as uncertainty
regarding its business plan for future operations. ABGF's downgrade
to Ba1.br is based on the application of Moody's mapping criteria
for a B2 rating to the Brazilian national scale. ABGF's Ba1.br
rating is positioned at the top of the range of possible outcomes
on the Brazilian national scale for a B2 rating, indicating its
stronger creditworthiness relative to other B2-rated issuers in
Brazil.

According to Moody's, FGIE's downgrade to B1 primarily reflects the
increased uncertainty regarding its future operations with respect
to its evolving business strategy. FGIE's downgrade to Baa1.br is
based on the application of Moody's mapping criteria for a B1
rating to the Brazilian national scale. FGIE's Baa1.br rating is
positioned at the top of the range of possible outcomes on the
Brazilian national scale for a B1 rating, indicating its stronger
creditworthiness relative to other B1-rated issuers in Brazil.

Moody's will subsequently withdraw all ABGF's and FGIE's ratings.
Moody's has decided to withdraw the ratings for its own business
reasons.

ESG CONSIDERATIONS

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

PRINCIPAL METHODOLOGY

The principal methodologies used in rating Agencia Brasileira
Gestora de Fundos Garantidores e Garantias S.A. were
Government-Related Issuers Methodology published in February 2020,
and Financial Guarantors Methodology published in November 2019.
The principal methodology used in rating Fundo Garantidor de
Infraestrutura was Financial Guarantors Methodology published in
November 2019.

Headquartered in Brasilia, Brazil, ABGF is a state-owned financial
institution that was established in 2012. As of December, 31 2019,
its total assets amounted to BRL312.8 million ($77.7 million) and
shareholders' equity totaled BRL 309.1 million ($76.9 million). The
entity recorded a net loss of BRL681.4 million ($172.0 million) in
2019.

Based in Brasilia, Brazil, FGIE is a state-owned fund and was
established in November 2014. As of December 31, 2019, its total
assets amounted to BRL698.2 million ($173.6 million) and
shareholders' equity was BRL620.6 million ($154.3 million). The
company recorded a net income of BRL77.5 million ($19.3 million) in
2019.

BRAZIL: IBOVESPA Cuts Losses to 12% & Pulls Away From Second Halt
-----------------------------------------------------------------
Richard Mann at Rio Times Online reports that the Brazilian stock
market was once again in decline after trading was halted on March
19, at 1:18 p.m., when the IBOVESPA, the B3's main stock index,
dropped by 10.26 percent.

The downtrend occurred amid another wave of global pessimism
regarding the economic impacts of the Covid-19 coronavirus
pandemic, according to Rio Times Online.

This was the sixth time that the circuit breaker was triggered in
Brazil since two weeks ago, the report notes.

Donald Trump's statements on possible rising unemployment in the
United States put pressure on the stock market, the report
relates.

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

GOL LINHAS: Discloses Actions to Address Impact of Covid-19
-----------------------------------------------------------
Since the inception two decades ago of GOL Linhas Aereas
Inteligentes S.A. ("GOL" or "Company"), (B3: GOLL4) (NYSE: GOL),
Brazil's largest domestic airline, its owners, management and "Team
of Eagles" have strived to provide the Brazilian public an
important and essential passenger and cargo transportation service.
Built on the vision of being the best airline to travel on, to work
for, and to invest in, we are proud to play our part in Brazilian
society and have confidence in our country's ability to tackle this
challenging moment.

Based on sound management and adaptability, GOL disclosed the steps
we are taking to address the impact of Covid-19 both on our Company
and in the context of its potential broader impact on our country.
We are also mindful of the role that GOL has with our 16,000
employees and in the supply chain meeting the travel needs of the
people of Brazil.

"In recent weeks, Covid-19 has become a priority for governments
and businesses across the globe. In light of this, we are working
hard to support the people, communities and businesses that depend
on us to lead with care, clarity, and confidence," says Paulo
Kakinoff, CEO. "Today, in addition to sharing the actions we have
taken, we are making ourselves available to assist Brazil's
authorities in addressing the public's needs."

GOL is actively monitoring ticket searches and sales trends, as
well as the dynamics of the broader airline industry. In February,
the Company saw minimal to no effect on demand from the COVID-19
virus and it was not necessary to adjust the Company's level of
service for its customers. However, in recent days, there has been
a market-wide decline in demand for air travel in Brazil.

As we remain committed to democratizing air transport in Brazil,
even during challenging times, GOL has not suspended service to any
domestic destination. Nevertheless, considering the current
situation, after careful evaluation the Company determined the
necessity to undertake a detailed redesign of our flight network,
without interrupting service to any domestic destinations.

"Adjusting our flights to reflect the change in customer demand is
sensible, prudent and consistent with our focus on being a market
leader," says Eduardo Bernardes, VP of Sales and Marketing. "We
will continue to offer our exceptional level of service for all our
customers. For the small number of customers affected by flight
changes, we have already contacted them to offer the best, most
convenient alternatives."

It is important to note that these changes reflect the best
estimates made with the information available at this time and
future revisions are not ruled out. Initially, to match supply with
demand, and as a result of travel restrictions imposed by the
authorities, GOL will reduce its total flight capacity by
approximately 60 to 70% until mid-June, with a 50 to 60% reduction
in the domestic market and 90 to 95% reduction in the international
market.

Celso Ferrer, VP of Operations adds: "As an airline experienced in
operating under adverse conditions, GOL has a highly adaptable and
flexible fleet management model, based on a single fleet type. That
sophisticated model once again enables us to be decisive while
minimizing disruption for our customers. We know that being
resilient and flexible in the midst of today's volatility is of
critical importance."

GOL maintains its medium and long-term business plans. We have
studied several scenarios and defined specific triggers for taking
further action. GOL is ready to adjust its flight offerings in an
agile and rational way, as soon as the levels of passenger demand
return to normal. The Company has the capability to implement
promptly more severe adjustments, if required, without the need to
review fleet plans or Company structure.

"Preparedness will guide us through the coming weeks," says Richard
Lark, CFO. "As a Brazilian airline, being prepared, and acting
decisively, is in our very nature. These adjustments are important
to maintain market equilibrium so that GOL can, after this period
of uncertainty, resume its growth trajectory."

We are proud to be Brazil's largest domestic airline, transporting
37 million passengers per year to over 100 destinations.

"As a leader in Brazil's business community, we want to step up and
help our country in tackling this pandemic," says GOL's chairman
and controlling shareholder, Constantino de Oliveira Júnior. "In
our twenty years as an airline, we have encountered and overcome
many challenges, learning a great deal along the way, and becoming
stronger in the process. We now stand ready to provide Brazilians
with the necessary support and assistance."

As reported in the Troubled Company Reporter-Latin America on
July 11, 2019, Fitch Ratings has upgraded GOL Linhas Aereas
Inteligentes S.A.'s Long-Term, Foreign- and Local-Currency Issuer
Default Ratings to 'B+' from 'B' and its National rating to
'A-(bra)' from 'BBB-(bra)'. Fitch has also upgraded GOL Finance
S.A.'s unsecured bonds ratings to 'B+/RR4' from 'B'/'RR4'. The
upgrades reflect improvements in GOL's credit risk profile due to
lower leverage, improved costs and more favorable industry dynamics
in Brazil.

GOL LINHAS: To Suspend All International Flights March 23-June 30
-----------------------------------------------------------------
Gabriel Stargardter at Reuters reports that GOL Linhas Aereas
Inteligentes S.A said in a statement that it is suspending all
international flights from March 23 to June 30.

GOL Linhas Aereas Inteligentes S.A also known as VRG Linhas Aereas
S/A is a Brazilian low-cost airline based in Rio de Janeiro,
Brazil.

As reported in the Troubled Company Reporter-Latin America on
July 11, 2019, Fitch Ratings has upgraded GOL Linhas Aereas
Inteligentes S.A.'s Long-Term, Foreign- and Local-Currency Issuer
Default Ratings to 'B+' from 'B' and its National rating to
'A-(bra)' from 'BBB-(bra)'. Fitch has also upgraded GOL Finance
S.A.'s unsecured bonds ratings to 'B+/RR4' from 'B'/'RR4'. The
upgrades reflect improvements in GOL's credit risk profile due to
lower leverage, improved costs and more favorable industry dynamics
in Brazil.

ODEBRECHT SA: Closes Agreement for BRL50 Billion Debt to Banks
--------------------------------------------------------------
Arkady Petrov at Rio Times Online reports that Odebrecht SA, one of
the main symbols of Operation Lava Jato, reached an agreement with
its main creditor banks to restructure more than BRL50 billion
(US$10 billion) in debt.

The company was expected to update its judicial reorganization
plan, according to Rio Times Online.  The reorganization procedure
is expected to be voted at a general meeting this month, the report
notes.

Odebrecht S.A. -- www.odebrecht.com -- is a Brazilian conglomerate
consisting of diversified businesses in the fields of engineering,
construction, chemicals and petrochemicals.  Odebrecht S.A. is a
holding company for Construtora Norberto Odebrecht S.A., the
biggest engineering and contracting company in Latin America, and
Braskem S.A., the largest petrochemicals producer in Latin America
and one of Brazil's five largest private-sector manufacturing
companies. Odebrecht controls Braskem, which by revenue is the
fourth largest petrochemical company in the Americas.

On June 17, 2019, Odebrecht filed for bankruptcy protection, aiming
to restructure BRL51 billion (US$13 billion) of debt.

The bankruptcy filing comes after years of struggles for Odebrecht,
the biggest of the Brazilian engineering groups caught in a
sweeping political corruption investigation that has rippled across
Latin America, Reuters relayed, as reported by The Troubled Company
Reporter - Latin America.

On August 28, 2019, the Troubled Company Reporter - Latin America,
citing The Wall Street Journal, reported that Odebrecht and its
affiliates filed for chapter 15 bankruptcy, seeking U.S.
recognition of the largest-ever bankruptcy in Latin America.
Odebrecht SA and several of its affiliates has filed for
bankruptcy protection in the U.S. Bankruptcy Court for the Southern
District of New York on Aug. 26.  The case is assigned to Hon.
Stuart M. Bernstein.



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C H I L E
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ENJOY SA: Fitch Cuts IDR to 'B' & Places Rating on Watch Neg.
-------------------------------------------------------------
Fitch Ratings has downgraded Enjoy S.A.'s Long-Term Issuer Default
Rating (IDR) to 'B' from 'B+' and placed the rating on Rating Watch
Negative. In addition, Fitch has downgraded Enjoy's senior
unsecured notes to 'B'/'RR4' from 'BB-'/'RR3'. The downgrades
reflect the substantial deterioration on Enjoy's credit metrics
during 2019 due to weak operating results in different operating
units in 2019, a situation that was worsen by the social crisis in
Chile that forced the company to close its casinos in the country
for a week. The rating action also factors in risks in Enjoy's
ability to deleverage to a level consistent with its category by YE
2020, considering their elevated capex program.

The Watch Negative responds to the disruption the company is facing
due to the coronavirus pandemic, which forced it to close all their
casinos for an expected period of minimum two weeks, damaging the
company's cash flow generation. Fitch base case scenario considers
the casinos will be closed for a period of one month, but this
could be extended, and if the impact on revenues goes over a
two-month period, the company's liquidity could not be enough to
face its fixed costs and financial obligations without external
funds support. The ratings incorporate the company's comfortable
amortization schedule, with no relevant amortizations until 2022.

KEY RATING DRIVERS

Operational Results impacted by Social Crisis: The social crisis in
Chile in 2019 forced the company to close its casinos in the
country impacting the operation in the 4Q19. This deepened the
effects of an already slow economic growth in the region. Enjoy's
revenues reached CLP270 billion as of September 2019 LTM (CLP279
billion as of September 2018 LTM), and EBITDA to CLP51 billion in
the same period (CLP55 billion as of September 2018 LTM). Fitch
expects these results to worsen with end of the year figures.

Higher Leverage than Expected: The weak operating results, coupled
with the capex requirements for the municipal licenses, led to
higher than expected leverage. As of September 2019, Enjoy
presented debt to EBITDA of 6.3x and net debt to EBITDA of 5.8x,
and Fitch expects that these ratios will deteriorate further with
FYE 2019 figures. As part of the bidding process for the municipal
licenses won, Enjoy committed capex in the new and revamped casinos
for CLP30 billion, in addition to renewal of slots machines for
around CLP40 billion. These investments are being financed by the
local bonds issued in 2018 and 2019. Cash and equivalences as of
September 2019 reached CLP53 billion. As of September 2019, the
company has disbursed around CLP15 billion, and the main portion of
the capex is expected to be disbursed in 2020, with the acquisition
of the new slot machines.

COVID 19 Forced Casinos to Close: The authorities in Chile, Uruguay
and Mendoza have ordered all the casinos to close for an initial
period of about two weeks, which could be extended. This put
further pressure on the company's cash flow generation, and will
prevent Enjoy from reaching an adequate capital structure during
2020 without additional measures, such as a capital increase or the
sale of non-core assets. An eventual recovery after the pandemic
won't be enough to reduce leverage within the rating triggers in
the short term. Fitch estimates that in a scenario of total close
down, the company would burn out approximately CLP15 million a
month, without considering financial expenses.

Local Bond Covenants at Risk: Enjoy waived the covenant measurement
of 4Q2019, but the debt to EBITDA target of 6.5x could be breach in
further measurements during this year if the current situation
continues. Operation of the casinos during the first two months of
the year showed a positive comparison with 2019. However, results
will show a sharp deterioration in March and probably April after
the close all the casinos since mid of March. Fitch sees that Enjoy
could face a delay recovering its capital structure and as such
another waiver should be within the current scope.

Slow Industry Growth: The gaming business in Chile is mature, with
low-single-digit revenue growth. Enjoy's growth strategy is focused
on developing underdeveloped locations, such as in Santiago and
Chiloe, as its other casinos post modest growth, as well as
increasing its appetite for opportunities outside Chile. The
expected recovery in Brazil should improve results at Enjoy's
casino in Punta del Este, Uruguay, which has been affected by the
weak economy.

DERIVATION SUMMARY

Enjoy's 'B+'IDR is lower than other small casino operations in the
Americas. Enjoy's leverage increased over 5.0x in 2019 after the
social crisis in Chile, and the company shows lower margins than
much larger operators such as Boyd Gaming Corporation, MGM Resorts
International (BB/Stable) and Wynn Resorts Ltd. Enjoy's business
metrics remain stable, with a strong market position in Chile,
profitability and an operating environment that limits new
competition in the country. Enjoy derives70% of its EBITDA from
Chile, and is present only in Latin America. Additionally, after
continuous years of financial stress, the company needs to devote
capex to revitalize its asset base. Enjoy owns all of its
underlying real estate, with the exception of Vina del Mar, Chile,
which may provide financial flexibility in case of needs, either as
collateral or asset sales.

KEY ASSUMPTIONS

  - Casinos remain closed for two weeks in March and two weeks in
April 2020 due to COVID-19.

  - Demand keeps soft during the second and third quarter of 2020.

  - Enjoy meets, waives or renegotiate its covenants in the local
bonds.

  - Capex focused on the requirements for the municipal licenses
with the original opening dates.

RATING SENSITIVITIES

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

  - Adjusted debt/EBITDA below 5.0x on a consistent basis;

  - FFO fixed charge coverage above 2x.
  
Developments That May, Individually or Collectively, Lead to
Negative Rating Action

  - Adjusted debt/EBITDAR consistently above 6.0x;

  - FFO fixed-charge coverage below 1.5x.

LIQUIDITY AND DEBT STRUCTURE

Liquidity Manageable: In November 2018 and April 2019, Enjoy issued
local bonds to finance its capex needs and refinance its current
debt. After this liability management, the company was left with no
significant amortization for the following three years, except for
CLP20 billion in CP due in May 2020. The company already has the
cash needed to pay that maturity, and the remainder short-term debt
is revolving. Nevertheless, as of Sept. 30, 2019, the company's
cash on hands of CLP53 billion completely covers its CLP45 billion
short-term debt. The main maturity after the CP is the
international bond for USD195 million due on 2022.

The current liquidity could be put at risk in the event of a longer
shut down period in the company's casinos.

ESG CONSIDERATIONS

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



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D O M I N I C A N   R E P U B L I C
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[*] DOMINICAN REPUBLIC: Farms Can Feed 'Entire Population'
----------------------------------------------------------
Dominican Today reports that National Cattlemen's Patronage
president, Rene Columna assured that the country has the installed
capacity to respond to the food demand of the entire population
during the difficult moment that Dominican society is experiencing
due to the coronavirus.

He said Dominican Republic's food producers have worked hard so far
this year, so they can supply the markets and supermarkets without
major inconvenience, according to Dominican Today.

"In difficult times like this, national production is reaffirmed as
the best guarantee that our people have to have timely and
affordable food access.  Our people can rest easy and focus on
following the recommendations of the health authorities, because,
God willing, enough food is being produced in our countryside,"
Columna said in a statement obtained by the news agency.


                  About Dominican Republic

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

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

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

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



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E L   S A L V A D O R
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BANCO AGRICOLA: Fitch Affirms LT IDR at 'B', Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed Banco Agricola, S.A.'s Long-Term Issuer
Default Rating at 'B'/Stable Outlook, and Viability Rating at 'b-'.
In addition, Fitch has affirmed Agricola's senior trust loan
participation notes at 'B'/'RR4', the bank's national ratings in El
Salvador and its local holding company, Inversiones Financieras
Banco Agricola at 'AAA(slv)'/Outlook Stable.

KEY RATING DRIVERS

AGRICOLA

IDRs, NATIONAL RATINGS AND SENIOR DEBT

Agricola's IDRs, national and senior debt ratings reflect Fitch's
assessment about the ability and propensity of its ultimate parent
Bancolombia S.A. (BBB/Negative) to provide support if required.
Bancolombia is the largest bank in Colombia with a significant
footprint in Central America.

Fitch's assessment of Bancolombia's ability to support Agricola is
highly influenced by the constraint El Salvador's 'B' country
ceiling imposes on the bank's rating. This is reflected on a lower
rating than would otherwise be possible based solely on
Bancolombia's ability and propensity to provide support. According
to Fitch's criteria, the country ceiling captures transfer and
convertibility risks that in this case could constraint on
subsidiary's ability to use parent support.

Agricola's issuer and senior debt national ratings are at the
highest point of the national ratings scale, given the
shareholder's relative credit strength compared to other rated
issuers in El Salvador.

VR

Agricola's VR of 'b-' is highly influenced by El Salvador's
operating environment that, in addition to the country's GDP per
capita and to the World Bank's Ease of Doing Business ranking,
reflects the country's sovereign rating (B-/Stable), less developed
but evolving regulatory framework compared to other Latam countries
as well as incremental downside risks in the banking sector due to
government initiatives to confront the worsening in the economic
environment. The operating environment is currently under a
significant degree of uncertainty in terms of the magnitude and
extent of the negative effects the economic prospects can have on
the banks' performance.

Its VR also reflects, with moderate importance, the bank's leading
franchise in the local market due to a strong market share close to
26% of total loans and total deposits as of December 2019, as well
as leadership in most business lines and its diversified business
model. However, its franchise is moderate in a global basis
comparison. Fitch also considered Agricola's solid financial
profile underpinned by its good asset quality, sound and improving
profitability metrics, adequate capitalization and an increasing
and diversified deposit-based funding.

Fitch considers Agricola's asset quality as good. Non-performing
loan (NPL) ratio stood at 1.3% as of December 2019. Reserve
coverage to NPL remains high, 190.6%, comparing well above to
almost all of the local peers and some regional peers rated above.
Loan concentration is moderate as the 20 largest exposures account
for 23.3% of total loans and 1.5x of Fitch Core Capital (FCC). More
challenging economic conditions in the short-term could pressure
this quality; however, unlike what some other peers could face, it
is expected Agricola's lending practices may limit this additional
pressure.

In 2019, profitability performed better than previous years.
Operating profits to Risk Weighted Assets (RWA) increased to 3.1%
due to low funding cost, operational efficiency and lower credit
costs. Despite potentially additional loans loss provisions, upward
pressures on the funding cost and a slowdown in the loan growth
under a more challenging scenario in the short-term, Agricola's
profitability should be more resilient given its strong franchise,
diversified business model, and continuous controls on operating
expenses.

Although Agricola's capitalization is below historical levels, it
is still commensurate with its rating level. As of December 2019,
the bank's Fitch Core Capital to RWA metric was 15.3% due to higher
asset growth and recurrent dividend payments to its shareholder.
Agricola's regulatory capital adequacy ratio of 14.5% stood above
its closest local peers. Fitch expects that the bank's capital
position is likely to remain at a similar level mainly due to a
loan growth potentially more limited under an uncertain scenario.

Agricola has a sound and diversified funding structure than local
peers driven by its strong franchise in deposits and alternative
funding sources such as local and international debt issuances. The
loans to customer deposits ratio stood at 97.2% at December 2019
supported by consistent growth in deposits. As the current
uncertainty in the markets is developing, access to alternative
types of funding and parent support could be limited although
mitigated given Agricola's strong franchise in deposits. Pressure
on funding cost for banks could be present if government requires
additional financing under a more challenging scenario.

SUPPORT RATING

The bank's Support Rating reflects Fitch's opinion on Bancolombia's
ability and propensity to support Agricola, if needed. Agricola's
support rating is also constrained by El Salvador's sovereign
rating, as reflected in the country ceiling. As per Fitch's
criteria, Agricola's IDR of 'B' corresponds to a support rating of
'4'.

AGRICOLA SENIOR TRUST LOAN PARTICIPATION NOTES

The rating for Agricola Senior Trust's five-year U.S.
dollar-denominated loan participation notes is aligned with the
bank's IDR, as the likelihood of default is the same as Agricola
given the senior unsecured nature of the loan participation.

These notes are to be due on June 18, 2020. According to
management, and also considering current market conditions,
Agricola is executing a refinancing plan, incorporating a
contingency in case needed. Currently, this plan is working as
scheduled.

INVERSIONES FINANCIERAS BANCO AGRICOLA

IFBA's, Agricola's immediate holding, national ratings reflect its
ultimate shareholder ability and propensity to support it if
needed. The 'AAA(slv)' rating shows the relative credit strength of
the shareholder, which is rated several notches above El Salvador's
sovereign rating, relative to other issuers rated in the El
Salvador.

RATING SENSITIVITIES

IDRs and SUPPORT RATING

Agricola's ratings remain sensitive to changes in El Salvador's
sovereign and Country Ceiling ratings. Changes in the bank's IDR
and Support Rating would mirror changes in El Salvador's sovereign
ratings and country ceiling.

VR

Agricola's VR is sensitive to changes in El Salvador's operating
environment, including its sovereign rating. Downgrades in
Agricola's VR could also come from a material deterioration in the
bank's financial profile.

AGRICOLA SENIOR TRUST LOAN PARTICIPATION NOTES

The rating of the notes is aligned with the bank's long-term IDR,
hence would mirror any change in the bank's IDR.

NATIONAL RATINGS

The Rating Outlook is Stable, as Fitch does not anticipate any
changes to Agricola's and IFBA's national ratings. The ratings are
at the highest point of the national rating scale and therefore
have no upside potential. In turn, a rating downgrade is unlikely
given the strength of the parent relative to other rated issuers in
El Salvador.

SUMMARY OF FINANCIAL ADJUSTMENTS

Prepaid expenses were reclassified as intangible assets and were
deducted from FCC.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Ratings of Banco Agricola, Inversiones Financieras Banco Agricola
and Agricola Senior Trust ultimately reflect the support it may
receive from its ultimate shareholder, the Colombian Bancolombia,
S.A., 'BBB'/RON, if required.

BANCO DAVIVIENDA: Fitch Affirms LT IDR at 'B', Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed Banco Davivienda Salvadoreno, S.A.'s
Long-Term Issuer Default Rating at 'B' and Short-Term IDR at 'B'.
The Rating Outlook on the Long-Term IDR is Stable. Fitch has also
affirmed the bank's Viability Rating at 'b-', as well as the
national rating of its holding company Inversiones Financieras
Davivienda, S.A. at 'AAA(slv)'/Outlook Stable.

KEY RATING DRIVERS

Davivienda Sal

IDRs, NATIONAL RATINGS AND SENIOR DEBT

Davivienda Sal's IDRs, national ratings and senior debt reflect
Fitch's assessment of the ability and propensity of its ultimate
parent, Banco Davivienda, S.A. (Davivienda; BBB/Negative) to
provide support if required. Davivienda is Colombia's third-largest
bank with presence in Central America and Miami rated 'BBB'/Outlook
Negative by Fitch.

The IDRs are constrained by El Salvador's 'B' Country Ceiling,
which, according to Fitch's criteria, captures transfer and
convertibility risks that in this case could constraint the
subsidiary's ability to use parent support. This caps the
subsidiary's IDRs to a lower rating than would be possible based
solely on Davivienda's ability and propensity to provide support;
however, in Fitch's opinion, the owner's commitment to its
subsidiary is sufficiently strong even taking in consideration the
Negative Outlook of the parent that allows Davivienda Sal be rated
above the sovereign rating.

Fitch's view on Davivienda's propensity to support the Salvadorian
subsidiary reflects the huge reputational risk that the bank's
default would constitute to its parent, which would damage its
franchise; the Salvadoran subsidiary is strongly correlated by the
market with its Colombian owner. Also, any required help would be
manageable relative to the owner's ability to provide it, due to
Davivienda Sal represented close to 7.6% of total consolidated
assets of Davivienda as of December 2019.

Davivienda Sal's issuer and senior debt national ratings are at the
highest point of the national rating scale given the relative
strength of the shareholder in relation to other issuers rated in
El Salvador.

VR

The bank's VR of 'b-'continues to be highly influenced by El
Salvador's operating environment which poses limitations to banks'
international ratings, especially for larger local banks - as in
Davivienda Sal's case, which is the second largest bank in El
Salvador. The operating environment under Fitch criteria is driven
by the country's GDP per capita and to the World Bank's Ease of
Doing Business ranking, reflects the country's sovereign rating
(B-/Stable), less developed but evolving regulatory framework
compared to other Latam countries as well as incremental downside
risks in the banking sector due government initiatives to confront
the worsened economic environment. The operating environment is
currently under a significant degree of uncertainty in terms of the
magnitude and extent of the negative effects the economic prospects
can have on the banks' performance. Davivienda Sal's VR also
reflects its strong local franchise, good asset quality, modest
profitability, reasonable capitalization and its stable funding.

Davivienda Sal's company profile is defined by its strong
franchise, remaining as the second largest bank by assets,
conforming near 14.7% of the banking system as of December 2019,
closely followed by the third position (13.9%), but distant from
the first position which doubles its size. However, its franchise
is moderate on a global basis comparison. Fitch believes that the
bank has a relatively high pricing power, not just because of its
size but also for its long and well-known trajectory in the country
as one of the oldest banks in the country.

The bank shows good asset quality metrics, signaling consistent
underwriting standards. As of December 2019, the past due loans to
total loans ratio showed a slight decrease, to 2.0% (2018: 2.2%)
although with slightly higher charge offs and a more dynamic loan
book expansion compared to the previous years. In Fitch's view,
Davivienda Sal's delinquency ratios could show some deterioration
amid the imminent global economic crisis derived from the pandemic.
Fitch will monitor closely the performance of the bank in light of
the rapidly changing local and international operating environment.
The bank's Individual borrower concentrations are moderate; the 20
largest credits accounted for 22.07% of the total loan book and
1.47x of the bank's Fitch Core Capital, below most similarly rated
Salvadorian peers.

Davivienda Sal's profitability remains modest and below peers'
average. In 2019, the bank's core profitability metric showed an
upward trend driven by a slightly wider margin and controlled
credit and operating costs; however, this ratio measured as
operating profitability to risk weighted assets (RWA) is still
below 1% (2019: 0.9%). As of December 2019, Davivienda's net
interest margin widened to 5.08% as the bank maintained 40% of the
loan book in consumer segments, compensating for increasing funding
costs.

In turn, in the middle of a possible downturn, profitability could
suffer from increased in credit costs and contraction of the
business volume.

Fitch believes that the bank benefits from its parent's support in
order to maintain its capital levels that comply with internal and
more conservative metrics than the local regulator but that compare
below to local peers. The agency considers that solvency indicators
are one of the lowest amongst banks with similar size in El
Salvador and the banking system. As of December 2019, the Fitch
Core Capital to RWA stood at 13.6% (system: 14.5%), and has been
constantly reducing since 2016 (16.2%), mostly due to the banks
growth and dividend payments.

Fitch considers that Davivienda Sal has a diversified funding,
which is favored from its sound deposit franchise and from its
parent support. The bank's funding relies on its ample deposit base
(76% of funding), complemented by local commercial paper (8%) and
loans from foreign banks and other long-term lenders (16%). Funding
composition has been somewhat steady, but funding cost has been
raising since 2015, due to higher deposits costs. The bank's loans
to customer deposits ratio, albeit gradually improving, is still
weak relative to other large Salvadorian banks and the system; in
2019 stood at 105.8% (2018:115.2%),

SUPPORT RATING

According to Fitch criteria, Davivienda Sal's IDR of 'B' maps to a
Support Rating of '4'. The bank's Support Rating is based on
Fitch's opinion of Davivienda's capacity and propensity to provide
support to Davivienda Sal, if needed. The institution's Support
Rating is also constrained by El Salvador's sovereign rating, as
reflected in the Country Ceiling.

INVERSIONES FINANCIERAS DAVIVIENDA

The national rating of 'AAA(slv)' assigned to IF Davivienda
reflects the ability and propensity of its shareholder Davivienda
to support it. IF Davivienda, subsidiary of Davivienda, is a
holding company whose exclusive purpose is the ownership of the
subsidiaries of the Davivienda financial group in El Salvador. The
consolidated financial profile of the conglomerate is a direct
reflection of the financial performance of Davivienda Sal, which at
year-end 2019 represented 98.5% and 87.8% of its assets and equity,
respectively.

RATING SENSITIVITIES

IDRs and SUPPORT RATING

Davivienda Sal's ratings remain sensitive to a change in El
Salvador's sovereign and Country Ceiling ratings. Changes in the
bank's IDR and Support Rating would mirror any movement in El
Salvador's sovereign ratings and Country Ceiling.

VR

Davivienda Sal's VR is sensitive to changes in El Salvador's
operating environment, including its sovereign rating. Downgrades
in the bank's VR could also come from a material deterioration in
its financial performance

SUPPORT RATING

Davivienda Sal's support rating is constrained but could be
upgraded if El Salvador's sovereign and Country Ceiling ratings are
upgraded by more than one notch as this would reflect a reduction
in the potential constraints on the bank's capacity to receive
extraordinary support. A downgrade of the support rating is also
possible should the sovereign rating and Country Ceiling be
downgraded.

NATIONAL RATINGS

The Rating Outlook is Stable as Fitch does not anticipate any
changes in Davivienda Sal's and IF Davivienda's national ratings.
The ratings are at the highest level of the national rating scale
and therefore have no upside potential. In turn, a rating downgrade
is unlikely given the strength of the parent relative to other
rated issuers in El Salvador.

SENIOR DEBT

The debt issuances' ratings are aligned with the bank's national
ratings, so any change in the bank's ratings would be reflected in
the issuances.

SUMMARY OF FINANCIAL ADJUSTMENTS

Pre-paid expenses were reclassified as intangibles and deducted
from Fitch Core Capital.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Ratings of Banco Davivienda Salvadoreno S.A. and Inversiones
Financieras Davivienda S.A. ultimately reflect the support it may
receive from its ultimate shareholder, the Colombian Banco
Davivienda, S.A., 'BBB'/RON, if required.



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

JAMAICA: Investors in Equities Market Urged Not to Panic
--------------------------------------------------------
RJR News reports that investors in the local equities market are
being urged not to panic as stock prices fall sharply amid mounting
fears about the economic impact of the coronavirus.

The market has declined by 14 per cent since the first case of the
virus was detected in Jamaica, according to RJR News.

But, Marlene Street Forrest, Managing Director of the Jamaica Stock
Exchange, remains optimistic about the equities market, the report
notes.

Mrs. Street Forrest said the market remains a viable option for
long term investing, 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.



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

GRUPO KALTEX: Fitch Affirms LT IDR at 'CC'
-------------------------------------------
Fitch Ratings has affirmed Grupo Kaltex, S.A. de C.V.'s Long-Term
Foreign and Local Currency Issuer Default Ratings (IDRs) at 'CC'.

The rating action reflects Kaltex's continued tight liquidity
compared to debt service and short-term debt. It also reflects the
challenging operating environment that the health crisis is
causing. The COVID-19 outbreak will bring uncertainty in the market
causing lower sales volume and depreciation of the Mexican peso
against the U.S. dollar, among others. The health crisis threatens
the spring-summer collections and puts the fall-winter season at
risk with less people visiting retail stores. The depreciation of
the Mexican peso affects Kaltex's operations since the company has
approximately 50% of costs and 64% of debt (after hedge) in U.S.
dollars, and only 41% of revenues in that same currency. In Fitch's
opinion, this will continue to squeeze the company's operating cash
flow and liquidity, if a shareholder bailout does not happen, the
risk of default appears probable.

The ratings reflect Fitch's assumption that Kaltex will meet
interest payments in April and remain reliant on the completion of
either asset sales or shareholders support absent an improvement in
the operating cash flow to strengthen its liquidity position. Any
indication of risks related to debt service payment will result in
further downgrades.

The ratings also reflect the company's exposure to the cyclicality
of the textile industry, level of consumer demand, input cost price
volatility, limitation of transferring cost increases into prices
in a rapid manner and absence of long-term customer contracts. In
addition, the ratings take into account Kaltex's revenue
diversification, good commercial relations with top-quality
customers, and its position as the world's fourth-largest denim
player based on installed capacity.

KEY RATING DRIVERS

Weak FCF Generation: Shareholders support allows the company to
face working capital requirements and capex, resulting in weak FCF
generation. Positive FCF generation is the key aspect to strengthen
the company's liquidity position. Fitch underscores this as
critical for the company's business as a going concern. The
company's exposure to volatile commodity related input costs limits
its ability to transfer the full impact of variations to prices
along the cycle; however, currently the company has been benefited
by lower input costs which will be compensated by the depreciation
of the Mexican peso.

Low Profitability: The company materialized its efforts of
improving profitability margins; however, these were aided mainly
by lower raw material prices. Fitch expects Kaltex's operations to
stabilize, with EBITDA margins of approximately 6.8%, which is
lower than the originally anticipated 10%-11%. Fitch estimates that
EBITDA margins of approximately 11% could allow the company to
register adjusted leverage levels below 4.5x and interest coverage
level above 2.0x.

High Leverage Reduces Flexibility: Current and estimated adjusted
leverage levels are higher than the bond financial covenant and
prevent Kaltex from incurring additional indebtedness. At Dec. 31,
2019, the company recorded a leverage level, measured as total debt
/EBITDA, of 5.0x in Mexican peso terms. Fitch projects this ratio
will reach 6.2x at YE 2020 and 5.7x at YE 2021.

Management is working on asset sales in the form of available land.
Proceeds are intended to strengthen Kaltex's liquidity. Fitch will
not include these potential cash flows in its base case until they
are completed.

Exposure to Cyclical Industry: The ratings reflect the company's
exposure to the cyclicality of the textile industry, level of
consumer demand, input cost price volatility, inability to transfer
cost increases into prices rapidly and absence of long-term
customer contracts.

The company's operations depend on variables affecting
discretionary consumer spending, including general economic
conditions, consumer confidence, unemployment, consumer debt,
interest rates and political conditions. A decline in discretionary
spending may cause volatility in sales volume. Kaltex is exposed to
input cost price volatility and has limited ability to rapidly
transfer cost increases into consumer prices. The company also
exhibits customer concentration, which increases operational risk,
as customers may experience weak performance or shift to a
different supplier.

Business Diversification: Kaltex's cash flow and profitability are
supported by a diversified revenue base, operating vertical
integration and product offerings. The company has diversified
revenue by product type and geographic market, which reduces the
risk of concentration in one segment of the textile industry, and
mitigates adverse economic cycles in a particular region. At Dec.
31, 2019, 54% of Kaltex's total revenues were generated in Mexican
pesos, 41% in U.S. dollars, and 5% in Euros and Colombian pesos.

ESG: Grupo Kaltex has an ESG Relevance Score of 4 for Management
Strategy due to challenges that the company faces to implement its
strategy. This has a negative impact on the credit profile, and is
relevant to the rating in conjunction with other factors.

Grupo Kaltex has an ESG Relevance Score of 4 for Group Structure
due to ownership concentration and key man risk. This has a
negative impact on the credit profile, and is relevant to the
rating in conjunction with other factors.

Grupo Kaltex has an ESG Relevance Score of 4 for Financial
Transparency due to the absence of clearance of intercompany
operations and details in operations breakdown. This has a negative
impact on the credit profile, and is relevant to the rating in
conjunction with other factors.

DERIVATION SUMMARY

Kaltex's business position is limited by its exposure to cost
increases and sales volume sensitivity to price upturns; this
exposure results in higher cash flow volatility. The company's
obligations are met with lower raw material prices and shareholder
support. Its liquidity position is tight compared with debt service
and short-term debt. In comparison with Grupo IDESA, S.A. de C.V.
(CCC-), this company faces pressure on its capital structure
resulting from a weakening in its stand-alone credit profile and
its tight liquidity.

Fitch views the company's financial and liquidity metrics as in
line with the 'CC' category. Kaltex's scale of operations,
financial profile, profitability, leverage and liquidity levels
compare unfavorably to denim companies in the 'BB' category, such
as Levi Strauss & Co (BB+/Stable), and other diversified
manufacturing companies like Grupo KUO, S.A.B. de C.V.
(BB/Stable).

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for Grupo Kaltex:

  -- Revenue of approximately MXN17.6 billion on average over the
next four years;

  -- EBITDA margin averaging about 6.8%;

  -- Capex of approximately 2.0% of sales;

  -- Interest payments are met;

  -- Total debt/EBITDA levels around 5.5x over the next four
years.

RATING SENSITIVITIES

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

  -- Improved liquidity profile in the form of significant and
steady operating recovery, equity injections or asset sales;

  -- FFO and EBIT margins above 5%, EBITDA margin improvement to
above 10%, expansion of positive FCF margin above 1%, and stable
operating results through industry and economic cycles resulting in
a comfortable liquidity position, interest coverage above 2.0x and
total debt/EBITDA consistently below 4.5x.

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

  -- Failure to improve liquidity and complete asset sales or
equity injections;

  -- Perception of risks on meeting interest payments;

  -- Continued operational pressures resulting in EBITDA/interest
paid below 1.0x.

LIQUIDITY AND DEBT STRUCTURE

Tight Liquidity Position: The company's available cash balance was
USD21 million at YE 2019, with senior notes interest payments of
USD14.2 million in April 11, 2020, and USD14.2 million in Oct. 11,
2020; along with approximately USD4.0 million of short-term debt
due during 2020.

Kaltex reported total debt of USD354 million at YE 2019, of which
98% was denominated in U.S. dollars and the rest in Colombian
pesos. The debt consists mainly of USD320 million in senior secured
notes due 2022, with the rest in bank loans. As of YE 2019, the
issuer and the subsidiary guarantors collectively accounted for
about 72.1% of Kaltex's consolidated assets, 100.0% of consolidated
EBITDA and 95.3% of consolidated sales.

In addition, the notes are secured by mortgages that include
Mexican plants in Tepeji del Rio, Hidalgo and Altamira, Tamaulipas;
a non-possessory pledge agreement that includes machinery and
equipment owned by Manufacturas Kaltex, S.A. de C.V.; and a
non-possessory pledge agreement covering machinery and equipment
owned by Kaltex Fibers, S.A. de C.V. Based on company information,
the approximate value of the collateral at YE 2019 was MXN1,917
million (approximately USD102 million).

ESG CONSIDERATIONS

Grupo Kaltex has an ESG Relevance Score of 4 for Management
Strategy due to challenges that the company faces to implement its
strategy. This has a negative impact on the credit profile, and is
relevant to the rating in conjunction with other factors.

Grupo Kaltex has an ESG Relevance Score of 4 for Group Structure
due to ownership concentration and key man risk. This has a
negative impact on the credit profile, and is relevant to the
rating in conjunction with other factors.

Grupo Kaltex has an ESG Relevance Score of 4 for Financial
Transparency due to the absence of clearance of intercompany
operations and details in operations breakdown. This has a negative
impact on the credit profile, and is relevant to the rating in
conjunction with other factors.

GRUPO POSADAS: Fitch Downgrades LT IDR to 'CCC+'
------------------------------------------------
Fitch Ratings has downgraded Grupo Posadas, S.A.B. de C.V.'s Local
and Foreign Currency Long-Term Issuer Default Ratings to 'CCC+'
from 'B'. Fitch has also downgraded Posadas' USD393 million senior
unsecured notes due 2022 to 'CCC+/RR4' from 'B/RR4'. In addition,
Fitch has downgraded Posadas' National Scale Long-Term Rating to
'B-(mex)' from 'BB+(mex)'. The Rating Outlook for the National
Scale Rating remains Negative.

Posadas' downgrade reflects the expectations of weaker operational
results in 2020, on top of the deterioration already seen in 2019,
which increases the pressure in the company's cash burn and
liquidity position. This is a result of the industry's downward
cycle which could be exacerbated by the global COVID-19 pandemic.
Expected negative free cash flow (FCF) will slow down the company's
deleveraging.

Posadas operations have been pressured by weak market conditions
since mid-2018 and the global health crisis could extend market
down cycle. Limited EBITDA generation, increasing working capital
requirements and tax settlement payments have resulted in negative
FCF. Liquidity risk is increasing as Fitch estimates of negative
cash flows from operations (CFO) could deplete cash on hand and
limit Posadas' ability to meet interest payments beyond 2020.
Exposure to depreciation of the Mexican peso to the U.S. dollar has
added additional pressure on leverage. Fitch's previous projections
for Posadas estimated that, under normal circumstances, the
company's leverage ratio (total adjusted debt to EBITDAR) could
have reached 5.5x in the mid-term. In current estimates, EBITDA
generation is expected to go back to MXN 1,300 million until 2023
resulting in total adjusted leverage ratios above 7.0x during this
time period. The deviation from the deleveraging path has pressured
the company's capital structure. Fitch's projections assume that a
clear refinancing strategy for the U.S. dollar denominated notes at
least a year prior to maturity.

The 'RR4' Recovery Rating assigned to the senior note's issuances
indicate average recovery prospects given default. 'RR4' rated
securities have characteristics consistent with historically
recovering 31%-50% of current principal and related interest.

KEY RATING DRIVERS

Leverage Remains High: Posadas' total adjusted debt/EBITDAR is
expected to remain above 7.0x during the rating horizon. The
weakening of the Mexican peso with regards to the U.S. dollar could
pressure leverage ratios above Fitch's expectations. Limited EBITDA
generation in the midst of the health crisis could result in
interest coverage ratios close to 1.0x for YE 2020, similar to 2019
and compared to 1.6x in 2018. Fitch's ratings case projections
estimate that Posadas' total adjusted leverage ratio could
strengthen in the mid-term depending on the company's EBITDA
generation reaching levels seen prior to 2018. Fitch's base case
scenario assumes that the company refinances the senior notes due
in 2022 prior to maturity.

Negative Estimated FCF: Fitch estimates that cash outflows related
to 2017's tax settlement and increased working capital requirements
form the sale of Vacation Club memberships will result in negative
FCF, before asset sales, for the following years. As of Dec. 31,
2019, accounts receivable from Vacation Club memberships amounted
to MXN7,010 million up from MXN 6,056 million in 2018. These
receivables make up a third of the company's total assets.

FX Exposure: Posadas is exposed to the depreciation of the Mexican
Peso against the U.S. dollar, since most of its debt is dollar
denominated and only about 27% of its revenues are generated in
hard currency. This level of revenues covers USD30.9 million of
interest expense annually. The remaining revenues are not directly
denominated in USD, but increases in hotel daily rates usually tend
to follow movements in the USD/MXN exchange rate. In addition, the
company's strategy is to maintain USD denominated cash balances. As
of Dec. 31, 2019, 65% of the company's cash balance was denominated
in USD (approximately USD43 million), while 98% of its debt balance
was denominated in this currency (USD393 million).

Operating Results Lower Than Expected: In 2019, a slight drop in
sales from owned and managed hotels, together with increased costs
across all business segments resulted in EBITDAR levels 22.1% below
Fitch's previous projections. Posadas' 2019 sales from owned and
managed hotels increased only 2.8% from 2018 to 2019. The number of
hotels grew by 1.1% and inflation was 2.8% during the same period.
The past year was sluggish for the Mexican economy; uncertainty
generated by the government resulted in GDP growth rates below
Fitch's estimates. Mexico saw a reduction in both private and
public investing. Around 80% of Posadas occupancy rates are exposed
to business travelers from these segments. Fitch does not estimate
revenue growth in the short term as 2020 forecasts acknowledge
increased travel cancelations stemming from the global COVID-19
pandemic as well as reduced expected Mexican GDP growth rates.

Strong Brand Recognition: Posadas' ratings are supported by the
company's business position in Mexico, solid brand name and
multiple hotel formats. The company's diversified revenues are
generated from owned and leased properties, managed hotels and
vacation club membership sales and annual fees. The ratings
incorporate the industry's high correlation to economic cycles,
which negatively affect operating trends in downturns and increases
volatility of operating results. The use of multiple hotel formats
allows the company to target domestic and international business
travelers of different income levels, in addition to tourists, thus
diversifying its revenue base. Geographic diversification is
limited as Posadas' operations are primarily located in Mexico.

Operating Indicators Under Pressure: Occupancy has been relatively
stable for the past years at around 65%, above the country averages
of 60.3% and 60.9%, for YE 2019 and 2018, respectively, according
to the Secretaria de Turismo's data. Posadas' occupancy rates in
urban destinations for 2019 were around 64%, well above the
country's average of 55.3%. Increased competition in key urban
destinations resulted in price increases 180bps below inflation and
occupation rates for this segment decreased 160bps from 2018 to
2019. Total average daily rates (ADR) have been flat since 2018 and
are not expected to materially recover in the following quarters.

DERIVATION SUMMARY

Posadas' rating reflects weak operational results, expected
negative FCF and pressured liquidity. Its liquidity position is
tight compared with debt service coverage and maintenance capex.
Negative CFO could deplete cash on hand and limit the company's
financial flexibility. The material deviation from the company's
expected deleveraging path pressured the company's capital
structure.

In Fitch's view, the company's deteriorated financial and liquidity
metrics are in line with the 'CCC' category. Posadas' financial
profile, liquidity and financial flexibility compares unfavorably
to peers in the 'B' category, such as NH Hotels Group S.A.
(B/Stable).

KEY ASSUMPTIONS

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

  -- Future growth focuses on managed properties so portfolio mix
moves away from owned and leased properties;

  -- Sales for the vacation club segment materially decrease during
2020;

  -- Pressured KPI's in the short to medium term;

  -- EBITDA Margins temporarily low;

  -- Capex reflect expected recurring maintenance capex;

  -- Tax settlement payment outflows continue until 2023.

  -- The company does not issue additional debt; Fitch assumes a
successful refinancing in 2022.

The 'RR4' Recovery Rating assigned to the senior note's issuances
indicate average recovery prospects given default. 'RR4' rated
securities have characteristics consistent with historically
recovering 31%-50% of current principal and related interest.

The recovery analysis assumes that Grupo Posadas, S.A.B. de C.V.
would be reorganized as a going-concern in bankruptcy rather than
liquidated. Fitch has assumed a 10% administrative claim. The
going-concern EBITDA estimate reflects Fitch's view of a
sustainable, post-reorganization EBITDA level upon which Fitch
bases the enterprise valuation.

The post-reorganization EBITDA assumption is MXN647.6 million; it
represents an 8.3% discount from an already stressed EBITDA
generation scenario during 2019. This stressed EBITDA covers annual
interest payments reflecting a distressed level of revenue
generation across business lines. An EV multiple of 5.0x was used
to calculate post organization valuation based on the industry
multiple, which was adjusted for the country risk premium.

Fitch calculates recovery prospects for the senior unsecured notes
in the 31% to 50% range based on waterfall approach. This level of
recovery results in the company's senior unsecured notes being
rated the same as its IDR of 'B-'/'RR4'. The 'RR4' Recovery Rating
assigned to the senior note's issuance indicates average recovery
prospects given default.

RATING SENSITIVITIES

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

Fitch does not anticipate any positive rating actions in the near
future, but the following actions could be beneficial for the
company's rating:

  - Stable EBITDA generation and continued strengthening in
margins;

  - Improved operating metrics in both owned and leased hotels;

  - Total adjusted debt to EBITDAR ratios that are consistently
around 5.5x.

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

  - Weakening of operating metrics, including both ADR and
occupancy levels that are below the national average;

  - EBITDA generation that pushes interest coverage below 1.0x;

  - Failure to set a clear refinancing strategy at least one year
before the maturity of the senior notes;

  - An increase in Fitch's perceived of liquidity risk.

LIQUIDITY AND DEBT STRUCTURE

Weakening Liquidity and Refinancing Risk Exists: The company's
ratings assume the successful refinancing of the senior notes prior
to maturity. Posadas' financial flexibility is gradually
diminishing as the company has been using cash to fund working
capital requirements and capex. Posadas faces material scheduled
debt payments when the senior notes' mature in June 2022. Year-end
cash balance of MXN1,240 million was strengthened by asset sales
early 2020. Posadas' cash position includes a U.S. dollar position
of around USD43 million.

Cash and equivalents as of December 2019, including MXN348 million
from asset sales in early 2020, is sufficient to cover coupon
payments in the following periods. Around one third of Posadas'
sales are denominated in U.S. dollars; this continues to provide a
natural hedge for coupon payments.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch adjustments for operating lease treatment under IFRS 16.
Also, income from the sale of assets is included in revenues on
Posadas' financial statements; Fitch takes these non-recurring
items out of operating profits.

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).

TV AZTECA: Fitch Cuts LT IDR to 'B' & Alters Outlook to Neg.
------------------------------------------------------------
Fitch Ratings has downgraded TV Azteca S.A.B. de C.V.'s Long-Term
Foreign and Local Currency Issuer Default Ratings (IDR) to 'B' from
'B+'. The Rating Outlook was revised to Negative from Stable. In
addition, Fitch has downgraded the debt rating for the company's
USD400 million senior unsecured notes due 2024 to 'B'/'RR4' from
'B+/RR4'. An 'RR4' recovery rating on the company's senior
unsecured notes assumes average recovery prospects in case of a
default.

The downgrade reflects TV Azteca's ongoing credit profile
deterioration, which has notably accelerated during 2019 amid an
unfavorable operational environment. TV Azteca's revenues have
undergone negative growth, with its YE19 revenues in the range of
MXN12 billion-13 billion when compared with 2016 and 2017 in the
range of MXN13 billion-14 billion, due to unfavorable macro factors
negatively affecting advertising demand, which represented 91% of
its total revenue. The company's EBITDA interest coverage has also
decline below 2.0x which is tight for the rating category.
Moreover, a reduction in government advertising has put additional
pressure to the company's top line revenues. TV Azteca's EBITDA
fell 7% in 2019 from already low levels registered the previous
year (2018 EBITDA decreased by 40% vs. 2017) mainly due to weaker
than expected government advertising demand. Fitch expects the
current MXN peso depreciation to slowdown the company's deleverage
path. The company has made some refinance activities and does not
face any important debt maturity until 2022.

The Negative Outlook reflects Fitch's expectation that TV Azteca's
financial profile recovery will slow down given the prevalent weak
advertisement industry trend in Mexico and macroeconomic
conditions. Also, because of the slowdown in the economic activity,
Fitch expects some advertisers can reduce their advertising
spending. The ratings additional limitations include low financial
flexibility stemming from the breach of its debt incurrence
covenant, FX exposure, its limited revenue diversification and
Fitch's view of weaker governance compared to other Mexican
issuers.

KEY RATING DRIVERS

Weak Operating Results: Fitch expects TV Azteca's operating results
to continue below its previous projections and does not anticipate
an EBITDA turnaround in the short term. The company's EBITDA
continued to decline around 7% to MXN2,141 billion (pre-IFRS16,
calculated by Fitch) in 2019 of an EBITDA that had already fallen
40% over the previous year mainly due to weaker than expected
government advertising demand. The company's EBITDA margin slightly
increased to 16.7% in 2019 compared with 15.8% in 2018. The margin
increase is mainly due to a reduction in costs related to the World
Cup in 2018.

Low Operational Diversification: Azteca's business is heavily
concentrated in broadcast advertising and its low diversification
into other platforms or industry segments limits any significant
room for further scale growth in the short term. At YE 2019 around
91% of the company's revenues came from its advertising segment.
This makes the company more vulnerable to withstand a negative
pressure in the broadcast business which can be affected by a lack
of special events or by a change of trends towards other platforms
among many factors.

Competitive Environment: Although television continues to be the
most important mass medium in Mexico for advertisers, reaching
around 93% of Mexican homes, over the air broadcasting is in a
mature stage. The proportion of broadcast TV to total ad revenue
has continuously declined to 33% in 2019 from 50% in 2014. Evolving
media consumption patterns to on-demand viewing and the internet as
an alternative advertising platform are limiting the industry head
room. Fitch believes that TV Azteca is well positioned as it
continues to invest in content production to differentiate from its
main competitors and attract advertisers.

Neutral FCF Generation: At YE 2019 the company reported a negative
FCF generation (Fitch calculated) of MXN836 million after capex of
MXN610 million and dividend payments of MXN17.9 million. During the
next two years Fitch expects that the company will be able to
generate a neutral FCF. The company's capex is expected to remain
light at about MXN500 million in 2020 following the company's
strategy of a better selection of profitable projects that should
increase the revenue diversification in the medium term. Internally
generated cash has been the company's main source to finance capex
and dividend payments to shareholders in recent years. Fitch
forecasts a neutral FCF generation at YE 2020. Cash flow generation
in 2018 was used mainly to cover MXN3,940 million related to the
renewal of concessions for 20 years.

High Net Leverage: Based on Fitch's forecast, TV Azteca's net
leverage is likely to remain above 5.5x during the next two years
given the ongoing operational challenges. The company's capital
structure is negatively exposed to foreign exchange rate movement
risk. At YE 2019 51% of its debt is denominated in U.S. dollars
while around of 90% of its revenue generation is in Mexican pesos.
TV Azteca's YE2019 net leverage level calculated as total debt less
cash over EBITDA (pre-IFRS16) was 5.7x, mainly as a result of the
company's EBITDA deterioration. The company hedged the coupon
payments of the senior notes through maturity. Given the actual
macroeconomic conditions and FX volatility, during 2020 Fitch does
not anticipate a meaningful recovery in the company's revenue and
EBITDA that can lead to a deleveraging path back towards net
debt/EBITDA of 4.0x or below.

Governance Structure: TV Azteca has an ESG Relevance Score of 5 for
Governance Structure due to aggressive negotiation tactics, which
has a negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors. Also the company has an
ESG Relevance Score of 4 for Financial Transparency due to the
level of detail and transparency and timing of financial
disclosure, which has a negative impact on the credit profile, and
is relevant to the ratings in conjunction with other factors.

DERIVATION SUMMARY

TV Azteca's direct peers in the region are in different rating
categories. TV Azteca's financial profile has deteriorated. The
company's lack of operational diversification with around 91% of
its revenues at YE2019 coming from its advertising segment which is
more cyclical and has presented higher volatility. TV Azteca
compares unfavorably with Grupo Televisa S.A.B. (BBB+/Stable) a
company that boasts a stronger financial profile, and a more
diversified cash flow generation. Around 37% of Televisa's net
revenue comes from its Cable segment, which generates a more stable
and predictable cash flow. Compared with a regional peer Globo
Comunicacao e Participacoes S.A. (BB/Stable), both companies have
high reliance on advertising revenue and lack of cash flow
diversification, nevertheless TV Azteca's relative market position
and financial profile are significantly weaker. In addition,
Globo's ratings are constrained by the Country Ceiling of Brazil.

KEY ASSUMPTIONS

  -- Slightly negative revenue growth in 2020;

  -- EBITDA margin between 17.4% and 18.3% in 2020 and 2021;

  -- Capex to sales ratio of about 4% over the next two years;

  -- FCF margin of 0.9% over the next year;

  -- Net leverage of 5.6x in 2020 and 5.5x in 2021.

RATING SENSITIVITIES

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

  -- An upgrade is unlikely in the medium term, given the recent
operating performance;

  -- A material EBITDA turnaround that results in a net leverage
strengthening to below 4.0x.

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

  -- Weak advertising industry growth coupled with a gradual market
share loss;

  -- Weaker than expected EBITDA recovery due to an inability to
curb rising production costs;

  -- Net leverage increasing above 7.0x on a sustained basis;

  -- Persistently negative FCF;

  -- Further deterioration in perception of governance.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: TV Azteca's liquidity position and financial
flexibility are adequate, based on its cash holdings of about
MXN2.2 billion at YE 2019. Total debt outstanding as YE 2019 was
MXN14.5 billion (includes MXN1,400 of factoring). The company has
made some refinance activities and does not face any important debt
maturity until 2022. Around 51% of the company's debt is exposed to
exchange rate movements. The company's balance sheet debt mainly
consists of MXN4 billion in local notes due in 2022 and USD400
million in senior notes due in 2024.

Azteca's leverage level is higher than the senior notes' financial
covenant, which prevents the company from incurring additional
indebtedness except for refinancing. This limits TV Azteca's
financial flexibility.

ESG CONSIDERATIONS

Governance Structure: TV Azteca has an ESG Relevance Score of 5 for
Governance Structure due to aggressive negotiation tactics, which
has a negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors.

Financial Transparency: TV Azteca has an ESG Relevance Score of 4
for Financial Transparency due to the level of detail and
transparency and timing of financial disclosure, which has a
negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors.



=====================
P U E R T O   R I C O
=====================

ADVANCE PAIN: Gets 45-Day Extension to File Plan & Disclosures
--------------------------------------------------------------
Judge Enrique S. Lamoutte of the U.S. Bankruptcy Court for the
District of Puerto Rico has ordered that Advance Pain Management
and Rehabilitation Institute, Inc.'s response to order to show
cause and second motion requesting an extension of 45 days to file
disclosure statement and reorganization plan is granted.  The order
was entered March 11, 2020.

                 About Advance Pain Management

Advance Pain Management and Rehabilitation owns and operates
ambulatory health care facilities.  Ambulatory surgery centers (or
outpatient surgery centers) are health care facilities where
surgical procedures not requiring an overnight hospital stay are
performed.

Advance Pain Management and Rehabilitation filed a petition under
Chapter 11 of Title 11, United States Code (Bankr. D.P.R. 19-03941)
on July 11, 2019.  In the petitions signed by Dr. Renier Mendez,
president, the Debtor disclosed $69,818 in assets and $122,108 in
liabilities.

Isabel M. Fullana, Esq., at Garcia-Arregui & Fullana, PSC,
represents the Debtor.

WESTERN HOST: Unsecureds to Receive Nothing Under Liquidating Plan
------------------------------------------------------------------
Debtor Western Host Associates, Inc., filed with the U.S.
Bankruptcy Court for the District of Puerto Rico a Chapter 11 Plan
and a Disclosure Statement on March 10, 2020.

This is a Chapter 11 liquidation plan.  The Debtor seeks to pay
creditors with the proceeds of the business interruption insurance,
with the carve out as per agreement with secured creditor Triangle
Cayman Asset Company 2 to be filed with the Court, and any amount
left, if any, from operation until February 29, 2020, after paying
all administrative expenses, salaries, taxes, etc., to all parties
and creditors.

The Debtor's hotel stopped operating and closed on Feb. 29, 2020.
In this case, the Debtor reached an agreement with secured creditor
Triangle Cayman Asset Company 2 to transfer the property as full
satisfaction of the debt.

As to CLASS IV Claim of Triangle Cayman Asset Company 2, the
automatic stay was lifted in favor of this secured creditor.  The
building at Old San Juan San Jose Street 202, San Juan, P.R. 00901
will be transferred to this secured creditor in full satisfaction
of the secured debt.  This creditor also received the amount of
$633,806 from Integrand Assurance Company as a result of damages
caused by Hurricane Maria to the mortgaged property.  This claim is
secured because of a mortgage deed and notes.

CLASS V General Unsecured Claims total $502,140.24. The liquidation
value is 0%. Therefore, unsecured creditors will not receive any
amount under the Plan.  A liquidation analysis will be filed as a
supplement to the Plan of Reorganization.

The Plan will be paid with the proceeds of the business
interruption in the amount of $370,000, a carve-out in the amount
of $43,000.00 from agreement with secured creditor Triangle Cayman
Asset Company 2, and any amount left, if any, from operation until
Feb. 29, 2020, after paying all administrative expenses, salaries,
taxes, etc.

Taxes that were being paid by the Debtor were Social Security
payments to the Internal Revenue Service, Income tax to the
Treasury Department of Puerto Rico, and Property taxes to the
Municipal Revenue Collection Center.

A full-text copy of the Disclosure Statement dated March 10, 2020,
is available at https://tinyurl.com/wzxheol from PacerMonitor at no
charge.

The Debtor is represented by:

         GRATACOS LAW FIRM, P.S.C.
         P.O. Box 7571
         Caguas, P.R. 00726
         Tel: (787) 746-4772
         Fax: (787) 746-3633
         E-mail: bankruptcy@gratacoslaw.com
         Victor Gratacos Da-az, Esq.

                 About Western Host Associates

Western Host Associates, Inc., owns a four-story commercial hotel
building located at 202 San Jose Street, Old San Juan, Puerto
Rico.

The hotel is currently non-operational and is valued by the company
at $1.35 million.

The company previously sought bankruptcy protection on Nov. 14,
2012 (Bankr. D.P.R. Case No. 12-09093) and on May 19, 2011 (Bankr.
D.P.R. Case No. 11-04152).

Western Host Associates sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-02696) on May 15, 2018.
In the petition signed by Luis Alvarez, president, the Debtor
disclosed $1.36 million in assets and $4.82 million in
liabilities.

Judge Brian K. Tester oversees the case.

The Debtor tapped Gratacos Law Firm, PSC, as its legal counsel and
the Law Offices of Jose R. Olmo-Rodriguez, as special counsel.



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

PETROLEOS DE VENEZUELA: Oil Terminal Seized Over Payment Dispute
----------------------------------------------------------------
Sputnik News reports that an oil storage terminal on the Dutch
Caribbean island of Bonaire has been seized by Curacao's state-run
oil firm Refineria di Korsou (RdK) following a payment dispute with
the Venezuelan oil company PDVSA, according to Managing Director of
RdK  Marcelino de Lannoy.

Curacao is a Dutch island region in the southern Caribbean Sea
located about 65 kilometres north of the Venezuelan coast,
according to Sputnik News.

De Lannoy warned in a statement that if the PDVSA fails to make
payments, Curacao will seek Dutch court approvals to sell the
PDVSA-owned Bonaire Petroleum Corp (BOPEC) and its barrel storage
terminal with 10 million barrels of storage capacity, the report
relates.  He declined to elaborate on how much the payment was, the
report notes.

The managing director also pledged that RdK will take BOPEC
workers' interests into account "as long as this is possible",
expressing hope that "with this PDVSA will comply with its duties,"
the report says.

"If this is not the case, there is no alternative left for RdK to
use its right to sell the installations in a public auction", he
added.  Neither PDVSA nor BOPEC General Manager Reginald Pinto has
commented on the matter yet, the report notes.

The developments come after the end of a contract between RdK and
the PDVSA last year to operate the Isla refinery on Curacao, the
report discloses.

This was preceded by Washington freezing the US-based assets of the
PDVSA worth $7 billion in 2018 as part of the White House's efforts
to sanction Venezuela and its officials in recent years in hitherto
fruitless attempts to force its duly elected President Nicolas
Maduro to resign, the report notes.  Caracas slammed the move as
unlawful and accused Washington of seeking to get its hands on
Venezuela's oil reserves, 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
===============

[*] Fitch Downgrades Four Latin American Energy Corporates
----------------------------------------------------------
Fitch Ratings has downgraded four Latin American energy corporates'
Foreign and Local Currency Issuer Default Ratings and affirmed five
others following the downward revision to Fitch's global oil and
gas price assumption. The decline in global hydrocarbon prices will
tighten Latin American energy companies EBITDA margins, thus
increasing leverage metrics over the rated horizon, halting
expansion plans and tightening liquidity. Fitch expects energy
companies will adjust their capex to prioritize reserve
replenishment if possible and preserve cash flow through 2021.

Fitch has taken a negative rating action on Frontera Energy
Corporation, Gran Tierra Energy International Holdings Ltd., Peru
LNG S.R.L due to their weaker resistance to lower hydrocarbon
prices and the impact on their respective capital structures.
Tecpetrol Internacional S.L.'s downgrade reflects its high exposure
to 'CCC' and 'B' rated operating environments and off-takers, which
Fitch expects will be further challenged in a volatile price
environment.

Fitch has affirmed the ratings of Canacol Energy Ltd, Compania
General de Combustibles S.A., Geopark Ltd, Hunt Oil Company of Peru
L.L.C., Sucursal del Peru and Pan American Energy. These
affirmations reflect Fitch's view that each company will be more
resilient to a downturn in hydrocarbon prices. These companies are
better positioned to sustain lower crude and gas prices due to
their low cost of production, greater financial flexibility in
adjusting capex due to their strong reserve life, and/or are
negligibly exposed to price volatility due to contracted sales in
domestic markets that are not impacted by Henry Hub (HH) prices.

KEY RATING DRIVERS

Gran Tierra Energy Downgraded to 'CCC' from 'B', Rating Watch
Negative: Fitch has downgraded Gran Tierra Energy to 'CCC', and
placed it on Rating Watch Negative. The downgrade of Gran Tierra
reflects the company's relative lower flexibility to withstand the
current low crude oil prices given the company's cost structure and
short reserve life profile. The downgrade also reflects the
company's expected increase in gross leverage, defined as total
debt-to-EBITDA, of 5.3x in 2020 from 2.1x in 2019 and a
persistently high total debt to 1P reserves of USD10.35 (barrels)
bbl over the rated horizon under Fitch's recently revised price
deck. The increase in gross leverage is due to lower assumed Brent
prices in 2020 of USD41bbl, a 34% decrease from Fitch's previous
base case of USD62.50bbl. Fitch estimates Gran Tierra's half-cycle
cost for 2019 was USD22.30bbl with a realized price of USD53.91bbl.
Therefore, Gran Tierra's EBITDA margin is expected to decrease to
38% in 2020 from 58% in 2019. Fitch estimates Gran Tierra's EBITDA
in 2020 will be approximately USD135 million down from USD333
million in 2019. Fitch's revised base case estimates Gran Tierra's
leverage will remain higher than previously expected due to the
contraction of crude prices. Fitch believes the company has weaker
liquidity to absorb expected volatility in crude prices in the
short term. The company reported nearly $9 million of cash in
YE2019. Gran Tierra's liquidity is supported by a $180 million
untapped funds from its $300 million revolving credit facility, but
tapping the revolver will negatively impact its leverage profile.

Frontera Energy Downgraded to 'B-' from 'B+', Rating Watch
Negative: Fitch has downgraded Frontera Energy to 'B-' from 'B+'
and placed on Rating Watch Negative. Frontera's rating downgrade
and rating watch reflect the company's rigid cost structure
associated to fixed transportation costs limiting its flexibility
when coping with low oil price environment, given its full-cycle
costs and relatively short reserve life. Fitch believes the
company's strong liquidity profile will serve as a buffer during a
volatile price environment. Fitch expects that Frontera will not
grow its 1P reserve base and profit margins will contract due to
lower crude prices and its fixed transportation costs. Fitch
estimates Frontera's full-cycle cost averages USD42bbl. As a
result, Frontera is expected to have a 1P reserve life of between
4.0-5.0 years, lowest among Fitch's rated Latin American
independent energy companies. Frontera's gross leverage is expected
to increase to 1.9x in 2020 from 0.6x in 2019. EBITDA margins are
expected to decrease to 22% in 2020 from 42% in 2019. The lower
EBITDA margin, compared to peers, is explained by the companies
fixed transportation cost which averages USD11.5-12.50 per barrel,
representing roughly 25%-30% of revenues historically. The company
has a manageable debt profile of USD331 million with its first
maturity due in 2023 and a very strong liquidity position with
USD366 million in cash and equivalents covering interest expense
through maturity.

Peru LNG Downgraded to 'B+' from 'BBB-': PLNG's downgrade reflects
Fitch's expectation that leverage will remain at higher levels
during 2020-2022 due to lower EBITDA generation, given the
company's exposure to lower international gas prices. Per Fitch's
recently updated Oil & Gas Price Deck reflecting a deteriorated
scenario for Henry-Hub (HH) and National Balance Point (NBP)
indexes, net leverage will reach a peak of roughly 18.5x during
2020, and remain above 8.0x during 2021-2022, consistently above
the 4.5x originally expected. The higher leverage is supported by
its liquidity. The company reported USD140 million of cash on hand,
with an additional USD75 million on committed undrawn credit line
facility, covering annual interest payments of roughly USD50
million of PLNG's outstanding USD940 million notes. Going forward,
Fitch estimates total capex of USD15 million during 2020, including
PLNG's investments to increase port availability (USD5 million),
and ethane recovery project (USD8 million) and total capex during
2021 will reach approximately USD35 million, incorporating USD20
million, to complete the port availability project and USD15
million for major maintenance at the plant. Fitch expects PLNG to
not distribute any dividends over the rating horizon in order to
accumulate cash to make front-to-debt amortization payments
starting in September 2024.

Tecpetrol Downgraded to 'BB' from 'BB+'; Outlook Revised to
Negative: Fitch has downgraded Tecpetrol Internacional to 'BB' from
'BB+', Outlook revised to Negative. The downgrade and Outlook
Negative reflect Tecpetrol's high exposure to 'B' and 'CCC' rated
operating environments and off-takers, who are Fitch expect will be
further stressed by declining commodity prices and economic
slowdown. Fitch estimates the company generated 80% of its 2019
EBITDA in Argentina (CC), 3% from Bolivia (B+) and 2% in Ecuador
(CCC). The 'BB' rating continues to be supported by its 10%
ownership stake in Block 88 and 56 within the Camisea natural gas
field in Peru, providing stable and predictable cash flows over the
rated horizon covering interest expense on average by 2.7x through
2023. Fitch does not estimate a material impact to the company's
consolidated EBITDA margin and/or leverage. Tecpetrol's is
predominately concentrated in gas production representing 70% of
revenue and 30% in oil. Its gas operations are sold domestically
and are not impacted by henry hub prices. Fitch expects the company
will maintain a gross leverage profile of below 1.0x through 2023,
strongest amongst peers in the region. The company has flexibility
in adjusting its capex program, with a strong 1P reserve life of 10
years and a total debt to 1P of USD1.55boe.

Affirmed Ratings: Fitch has affirmed the ratings of Canacol Energy
(BB-), Compania General de Combustibles (CCC), Geopark Ltd (B+),
Hunt Oil and Gas Company (BBB) and Pan American Energy (B+).
Canacol, CGC and Hunt Oil and Gas are low cost gas production
companies with contracted sales in domestic markets with Canacol
and Hunt having investment grade off-takers. CGC is exposed to the
Argentine government, which is reflected in its 'CCC' FC IDR. These
issuers are not materially impacted by international gas prices and
leverage profiles are expected to remain unchanged. Geopark and Pan
American Energy are also low-cost oil and gas producers with stable
reserve lives, offering greater flexibility in capex adjustments.
Fitch estimates these issuers on average have full-cycle costs
below Fitch's 2020 crude price assumption of USD41bbl, but Fitch
expects them to replenish used reserves to maintain their strong
reserve lives.

KEY ASSUMPTIONS

Fitch revised oil and gas price assumptions as follows:

Brent (USD/bbl) of $41 in 2020, $48 in 2021, $52 in 2022 and $55
for the long term;

Henry Hub (USD/mcf) of $1.85 in 2020, $2.10 in 2021, $2.25 in 2022
and $2.5 for the long term.


RATING SENSITIVITIES

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

  -- No positive rating actions are expected at this time given the
ongoing volatility in global oil and gas markets.

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

  -- A sustained pressure on global hydrocarbon prices due to the
ongoing supply/demand dynamics could result further negative rating
actions.

ESG CONSIDERATIONS

Except for the matters discussed above, the highest level of ESG
credit relevance, if present, is a score of 3 - 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).

Except for the matters discussed, the highest level of ESG credit
relevance, if present, 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.

Tecpetrol Internacional S.L.

  - LT IDR BB; Downgrade

  - LC LT IDR BB; Downgrade

Tecpetrol S.A.

  - Senior unsecured; LT BB; Downgrade

Hunt Oil Company of Peru L.L.C., Sucursal del Peru

  - LT IDR BBB; Affirmed

  - LC LT IDR BBB; Affirmed

  - Senior unsecured; LT BBB; Affirmed

Peru LNG S.R.L.

  - LT IDR BB-; Downgrade

  - LC LT IDR BB-; Downgrade

  - Senior unsecured; LT BB-; Downgrade

Gran Tierra Energy Inc.

  - Senior unsecured; LT CCC; Downgrade

Pan American Energy, S.L, Argentine Branch

  - LT IDR B+; Affirmed

  - LC LT IDR BB; Affirmed

Frontera Energy Corporation

  - LT IDR B-; Downgrade

  - LC LT IDR B-; Downgrade

  - Senior unsecured; LT B-; Downgrade

Pan American Energy LLC Sucursal Argentina

  - Senior unsecured; LT BB-; Affirmed

Compania General de Combustibles S.A.

  - LT IDR CCC; Affirmed

  - LC LT IDR B-; Affirmed

  - Senior unsecured; LT CCC+; Affirmed

GeoPark Limited

  - LT IDR B+; Affirmed

  - LC LT IDR B+; Affirmed

  - Senior secured; LT B+; Affirmed

  - Senior unsecured; LT B+; Affirmed

Canacol Energy Ltd.

  - LT IDR BB-; Affirmed

  - LC LT IDR BB-; Affirmed

  - Senior unsecured; LT BB-; Affirmed

Gran Tierra Energy International Holdings Ltd.

  - LT IDR CCC; Downgrade

  - LC LT IDR CCC; Downgrade

  - Senior unsecured; LT CCC; Downgrade

[*] Fitch Takes Action on Latin American Airlines
-------------------------------------------------
Fitch Ratings has conducted a portfolio review of the Latin
American airlines amid the current challenging scenario of the
coronavirus pandemic, and the expected sharp drop in demand
occurring in the markets due to travel bans, social distancing and
slow economic activity. The international ratings of LATAM Airlines
Group, Azul S.A., GOL Linhas Aereas Inteligentes S.A. and Avianca
Holdings have all been downgraded one or two notches. All of the
ratings of these airlines have been placed on Rating Watch
Negative.

AZUL Investments LLP

  - Senior unsecured; LT B; Downgrade

GOL Linhas Aereas Inteligentes S.A.

  - LT IDR B; Downgrade

  - LC LT IDR B; Downgrade

  - Natl LT BBB-(bra); Downgrade

Aerovias del Continente Americano S.A. (Avianca)

  - LT IDR CCC-; Downgrade

  - LC LT IDR CCC-; Downgrade

Gol Finance Inc.

  - Senior unsecured; LT B; Downgrade

LATAM Airlines Group S.A.

  - LT IDR B+; Downgrade

  - Natl LT BBB(cl); Downgrade

Nat Equity Rating

  - Primera Clase Nivel 3(cl); Affirmed

  - Senior unsecured; Natl LT BBB(cl); Downgrade

Avianca Leasing LLC

  - Senior unsecured; LT CC; Downgrade

Gol Finance

  - Senior unsecured; LT B; Downgrade

Azul S.A.

  - LT IDR B; Downgrade

  - LC LT IDR B; Downgrade

  - Natl LT BBB-(bra); Downgrade

Grupo TACA Holdings Limited

  - LT IDR CCC-; Downgrade

  - Senior unsecured; LT CC; Downgrade

LATAM Finance Limited

  - Senior unsecured; LT B+; Downgrade

Avianca Holdings S.A.

  - LT IDR CCC-; Downgrade

  - LC LT IDRCCC- Downgrade

  - Senior unsecured; LT CC; Downgrade

  - Senior secured; LT CCC-; Downgrade

GOL Linhas Aereas S.A.

  - LT IDR B; Downgrade

  - LC LT IDR B; Downgrade

  - Natl LT BBB-(bra); Downgrade

KEY RATING DRIVERS

Strong Cash Flow Burn due to Coronavirus: The downgrades reflect
increased credit risk as a result of the coronavirus pandemic that
will lead to negative FCF, diminished liquidity positions and
weaker balance sheets. The airlines have responded to the
challenging environment with capacity reductions ranging from
30%-50% in domestic markets and up to 95% in international markets
during the 2Q20. Capacity reductions in Brazil are projected to
increase as the virus spreads and more restrictive measures are
imposed that stifle demand. The downgrades take into account the
expectation of a slow recovery period, as well as the sharp
deterioration of local currencies and the mismatch between debt and
lease obligations and revenues generated from domestic operations.

High Uncertainty Results in Rating Watch: The Rating Watch Negative
that have been assigned to these issuers reflect the continued cash
flow pressure these companies would face if the travel restrictions
related to coronavirus continue for a prolonged period of time.
LATAM, GOL, Azul and Avianca are trying to reduce fixed costs and
find alternatives to minimize liquidity deterioration. Access to
credit lines and/or effective government support is a key item to
watch as it could potentially constitute some relief from liquidity
pressure.

Rating Action Varies: LATAM has the strongest liquidity position
among the four issuers and the most diverse sources of revenues. It
is currently operating at less than 50% of its capacity. Its
ratings were downgraded by one notch to 'B+' to reflect
deterioration in its strong liquidity position during the next few
months and diminished prospects of strong performance in the second
half of 2020. The ratings of Azul and GOL have been equalized at
'B' to reflect their high exposure to the Brazilian market.
Brazil's economy was starting to regain steam after a prolonged
downturn and remains vulnerable to changing conditions and consumer
sentiment given high unemployment levels and an uneven recovery.
The timing and degree of support from the Brazilian government is
hard to measure given its fiscal constraints. Avianca just recently
completed a debt restructuring and its business and financial
position remain fragile. Like LATAM, Avianca has high exposure to
international travel. It was downgraded to 'CCC-' from 'CCC+' to
reflect limited financial flexibility, tight credit metrics, and
negative FCF.

RATING SENSITIVITIES

The resolution of the RWN will depend on the severity of the impact
on issuer's operating cash flow generation in 2Q20, issuer's
ability to reduce fixed costs and the pressures on liquidity.

LATAM

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

  -- Failure to preserve liquidity and refinance short term
financial and leasing obligations.

  -- Prospects of total adjusted debt/EBITDAR sustained above 5.5x
and/or net adjusted debt/EBITDAR above 5.0 x by 2021.

AZUL

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

  -- Failure to preserve liquidity and refinance short term
financial and leasing obligations;

  -- Prospects of total adjusted debt/EBITDAR sustained above 6.0x
and/or net adjusted debt/EBITDAR above 5.0x by 2021.

GOL

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

  -- Failure to preserve liquidity and refinance short term
financial and leasing obligations;

  -- Prospects of total adjusted debt/EBITDAR sustained above 6.0x
and/or net adjusted debt/EBITDAR above 5.0x by 2021.

AVIANCA

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

  -- Failure to preserve liquidity and refinance short term
financial and leasing obligations.

  -- Prospects of net adjusted debt/EBITDAR above 8.0x by 2021.

ESG CONSIDERATIONS

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


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

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

Copyright 2020.  All rights reserved.  ISSN 1529-2746.

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