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

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

          Tuesday, March 31, 2020, Vol. 21, No. 65

                           Headlines



A R G E N T I N A

ARGENTINA: Bondholders Press Country to Step Up Efforts
AUTOPISTAS DEL SOL: Fitch Puts B+ Int'l. Notes Rating on Watch Neg.
LA RIOJA PROVINCE: S&P Affirms 'CCC-' Rating, Off Watch Negative
ODEBRECHT SA: To Hold Creditors Meeting Via Video on March 31


B E R M U D A

TEEKAY CORPORATION: Egan-Jones Cuts Sr. Unsec. Debt Ratings to B-


B R A Z I L

AVIANCA HOLDINGS: Egan-Jones Cuts Sr. Unsec. Debt Ratings to CC
NEXA: S&P Affirms BB+/B ICR, Cuts Stand-Alone Credit Profile to bb-


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Most Hotels Cease Operations


E C U A D O R

ECUADOR SOCIAL: Fitch Downgrades Class B Debt to CCsf
ECUADOR: Default Odds Surge as Virus Prompts Calls for Moratorium
ECUADOR: S&P Cuts Sov. Credit Ratings to 'CCC-/C', On Watch Neg.
EMPRESA PUBLICA: Fitch Downgrades Sr. Unsec. Notes Rating to CC


J A M A I C A

JAMAICA: Farmers Feeling Effects of Hotel Closures
JAMAICA: Minister to Say Whether Jamaica Will Seek IMF Help


M E X I C O

BANCO AHORRO: Moody's Reviews B1 Deposit Ratings for Downgrade
GRUPO POSADAS: S&P Downgrades ICR to 'CCC+' on Travel Downturn
NEMAK SAB: Moody's Places Ba1 CFR on Review for Downgrade


P U E R T O   R I C O

LIBERTY CABLEVISION: Fitch Affirms B+ LT Foreign-Currency IDR
POPULAR INC: S&P Alters Outlook to Stable, Affirms 'BB-' ICR
PUERTO RICO: Board to ask for Delay in Debt Restructuring Hearing

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Bondholders Press Country to Step Up Efforts
-------------------------------------------------------
Marc Jones at Reuters reports that agitating bondholders have
written to Argentina's government, accusing it of not doing enough
to allow the country's crucial debt restructuring negotiations to
make progress, according to bondholder sources involved in the
process.

Two sources told Reuters on the condition of anonymity that the
three main creditor groups had sent letters in recent days saying
that they wanted to contribute to an "orderly resolution" of
Argentina's debt challenges.

However, the creditor groups said they were concerned there was "a
shortfall in collaboration" on the part of the government,
according to Reuters.  They said they had received no response to a
request earlier in the month for key information about the state of
the economy and the government's plans, the report relays.

"We don't want an adversarial process but didn't receive any
response -- good faith negotiations require an exchange of economic
and financial information and also depend on feasible economic
policies," one of the bondholder sources said, the report relays.

Argentina's economy ministry declined to comment on whether it had
received the letters or on the debt process, the report discloses.

However, Economy Minister Martin Guzman in a presentation to
creditors pledged to "intensify" engagement with bondholders, the
report notes.  "We need cooperation on all sides to avoid a
lose-lose situation," he added.

Argentina is seeking to restructure nearly $70 billion in debt with
international bondholders -- including the likes of BlackRock,
Fidelity, Pimco and Ashmore -- to avert a damaging sovereign
default that would block the giant grain producer's access to
global markets, the report says.

One of the sources said the government had replied to some
creditors, the report notes.  The government response, he said,
vowed that information would be forthcoming and the government
would reach out to creditors for feedback, the report relates.  It
may later reach out for input in defining the restructuring offer
due in the next two weeks, the report relays.

Guzman told Reuters that the country will need "substantial relief"
as it restructures the debt.

"We will not accept anything that is not sustainable. We will be
absolutely firm on that," Guzman said, adding that any deal would
have to avoid putting more fiscal austerity on Argentina's
recession-hit economy, the report notes.

"Clearly Argentina has no capacity to service interest over the
next few years," the report relates.

One bondholder source who spoke to Reuters said recent talks with
the government had not gone well and the worry was that the
government was planning a "kamikaze" offer many investors were
likely to reject, the report discloses.

"We are here to negotiate in good faith under the IIF (Institute of
International Finance) fair restructuring principals. We want a
consensual solution that benefits the country," the source said,
the report says.

"The concern is that they might be seeking a unilateral approach
that would fail," the source added.

                            About Argentina

Argentina is a country located mostly in the southern half of South
America.  It's capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.

Argentina has the third largest economy in Latin America.  The
country's economy is an upper middle-income economy for fiscal year
2019 according to the World Bank.  Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.

Moody's credit rating for Argentina was last set at Caa2 from B2
with under review outlook. Moody's rating was issued on Aug. 30,
2019.  S&P Global Ratings, in December 2019, raised its foreign
currency sovereign credit ratings on Argentina to 'CC/C' from
'SD/D'.  S&P's outlook on the long-term sovereign credit ratings is
negative. Fitch Ratings, in December 2019, upgraded Argentina's
Long-Term Foreign-Currency Issuer Default Rating to 'CC' from 'RD',
and its Short-Term Foreign-Currency IDR to 'C' from 'RD'.  DBRS,
Inc. meanwhile downgraded Argentina's Long-Term and Short-Term
Foreign Currency - Issuer Ratings to Selective Default (SD), from
CC and R-5, respectively, also in December 2019.

AUTOPISTAS DEL SOL: Fitch Puts B+ Int'l. Notes Rating on Watch Neg.
-------------------------------------------------------------------
Fitch Ratings has placed the 'B+' rating on Autopistas del Sol,
S.A.'s international notes on Rating Watch Negative (RWN). The
notes are supported by the cash flow generations of the Costa Rican
toll road known as Ruta 27 (the Project).

Fitch has also placed the local scale 'AA(cri)' rating on the local
notes on Rating Watch Negative.

The Rating Watch Negative reflects the expectation that the Project
may experience significant traffic declines as a result of travel
limitations and a depressed economic activity brought up by the
recent coronavirus pandemic, which, depending on its severity and
duration, could have a major impact on the transaction liquidity
and credit quality. The RWN will be resolved once Fitch gets more
clarity with regards to the severity of the coronavirus pandemic
impact on traffic volumes and the shape of the recovery, as well as
on the issuer's ability to manage opex and capex as to preserve
liquidity.

RATING RATIONALE

The ratings reflect the asset's stable traffic and revenue profile,
supported by an adequate toll adjustment mechanism. Mostly used by
commuters, the Project may face significant competition in the
short-to-medium term once the main competing road is substantially
improved and if its tariff is significantly lower than that of the
Project. Toll rates are adjusted quarterly to exchange rate and
annually to reflect changes in the U.S. Consumer Price Index (CPI).
The ratings also reflect a fully amortizing senior debt with a
fixed interest rate and a net present value (NPV) cash trap
mechanism that prevents an early termination of the concession
before debt is fully repaid. Fitch revised its Rating Case to
reflect a lower traffic yielding an average debt service coverage
ratio (DSCR) of 1.1x, which remains in line with Fitch's criteria
guidance for the rating category. Notwithstanding the latter, the
presence of an MRG mechanism provides an additional layer of
comfort to the ratings.

As indicated, the recent outbreak of coronavirus and related
government containment measures worldwide creates an uncertain
global environment for toll roads in the near term. While AdS'
performance data through most recently available issuer data may
not have indicated impairment, material changes in revenue and cost
profile are occurring across the region and likely to worsen in the
coming weeks and months as economic activity suffers and government
restrictions are maintained or expanded. Fitch's ratings are
forward-looking in nature, and Fitch will monitor developments in
the sector as a result of the virus outbreak as it relates to
severity and duration, and incorporate revised base and rating case
qualitative and quantitative inputs based on expectations for
future performance and assessment of key risks.

KEY RATING DRIVERS

Mostly Commuter Traffic Base [Revenue Risk - Volume: Midrange]
Light vehicles account for approximately 90% of all users, which
have proved to be the most stable and resilient traffic base. The
road is used by commuters on workdays and by residents of San Jose
traveling to the beaches on the weekends. It could face significant
competition once major improvements to the existing and congested
San Jose-San Ramon Route are made, with the expectation that the
road does not have tolls or is materially cheaper than the Project.
The concession agreement provides a MRG that compensates the Issuer
if revenue is below certain thresholds, alleviating this risk to a
certain extent.

Adequate Rate Adjustment Mechanism [Revenue Risk - Price: Midrange]
Toll rates are adjusted quarterly to reflect changes in the Costa
Rican Colon (CRC) to USD exchange rate, and also annually to
reflect changes in the U.S. CPI. Tolls may be adjusted prior to the
next adjustment date if the U.S. CPI or the CRC/USD exchange rate
varies by more than 5%. Historically, tariffs have been updated
appropriately.

Suitable Capital Improvement Program [Infrastructure Development &
Renewal: Midrange] The Brownfield asset is operated by an
experienced global company with a higher-than-average expense
profile due to the geographical attributes of the project. The
majority of the investments required by the concession have been
made. The concession requires lane expansions when congestion
exceeds 70% of the ideal saturation flow, which triggers the need
for further investments. However, the Project would only be
required by the grantor to perform these investments to the extent
they do not represent a breach in the debt coverage ratios assumed
by the Issuer in the financing documents.

Structural Protections Against Shortened Concession [Debt
Structure: Midrange] Debt is senior secured, pari passu, fixed rate
and fully amortizing. The debt is denominated in USD. Nonetheless,
no significant exchange rate risk exists due to the tariff
adjustment provisions set forth in the concession and to the fact
that CRC-denominated toll revenues will be converted to USD on a
daily basis. The structure includes an NPV cash trap mechanism to
prepay debt if revenue outperforms the base case revenue indicated
in the Issuer's financial model, which largely mitigates the risk
of the concession maturing before the debt is fully repaid. Typical
project finance features includes a six-month debt service reserve
account (DSRA), three-month O&M Reserve Account (OMRA), six-month
backward and forward looking 1.20x distribution trigger and
limitations on investments and additional debt.

Financial Profile

Under Fitch's revised Rating Case, the Project's yields a minimum
and average DSCR of 0.8x and 1.1x, respectively. Considering this
scenario, the concession will last until its final maturity date in
July 2033 and will receive MRG payments from 2023 to 2032, which
amounts in average 20% of annual revenues. The metrics are in line
with Fitch's applicable criteria for the rating category.
Additional comfort is provided by the presence of the MRG.

PEER GROUP

Comparable projects in the region include Tranjamaican Highway
(TJH; BB-/Stable) in Jamaica. AdS and TJH are similar projects
since they both are strong commuting assets within their respective
country's capital cities. They also share all attributes at the
midrange level, but the difference in ratings comes from AdS' lower
metrics (average DSCR of 1.1x versus 2.0x under Fitch's rating
case).

RATING SENSITIVITIES

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

  -- Negative rating action on Costa Rica's sovereign ratings could
trigger a corresponding negative action on the rated notes;

  -- Traffic reduction in 2020 higher than 20%, along with the
expectation of a slow recovery that takes more than one year;

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

  -- A positive rating action in unlikely at the moment given the
Project is being placed on Rating Watch Negative.

TRANSACTION SUMMARY

The asset serves as a connection between the city of San Jose and
its metropolitan area with Puerto Caldera, along the Pacific coast.
The asset is operated by Globalvia, one of the world leaders in
infrastructure concession management, which manages 28 concessions
in seven countries. The company was established in 2007 by FCC
Group and Bankia Group. In March 2016, Globalvia was acquired by
pension funds OPSEU Pension Plant Trust Fund (40%), PGGM N.V. (40%)
and Universities Superannuation Scheme Ltd (20%).

CREDIT UPDATE

Currently, Costa Rica is not allowing tourists to enter the country
until April 13 in an effort to slow the spread of the coronavirus.
Furthermore, the country has also closed its protected wildlife
areas and all 29 of its national parks until the aforementioned
date. As such, the tourism industry is forecasting drops in
reservations of up to 90% this year for a sector that accounts for
approximately 200,000 jobs (i.e. 10% of the country's workforce).
The government has tentatively established April 13 as the day it
could lift travel restrictions, reopen national parks and schools.
However, the Health Ministry says that the date is subject to
change based on the coronavirus ongoing impact on Costa Rica.

In 2019, the weighted annual average daily traffic (WAADT) of Ruta
27 increased only by 0.8% when compared to 2018. This is still
somewhat higher when compared to Fitch's expectations of 0.0% for
the base and rating cases. In Fitch's view, this performance is a
consequence of the national economic situation.

Revenues were USD77.5 million, compared to the USD77.6 million
expected by Fitch in its cases. MRC was not executed, and there
were no revenues shared with the government, as per Fitch's
expectations. Total expenses were slightly lower than expected
given lower operating costs.

Reported DSCR in December 2019 was 1.28x, which was aligned with
Fitch's base case DSCR expectations of 1.28x.

FINANCIAL ANALYSIS

Fitch's Base Case assumes 2020 traffic level will be 0.5% lower
than the one recorded in 2019 and will grow at a CAGR of 2.0% from
2021 to 2033. This considers, among other factors, that the
competing route will charge 50% of the tariff initially established
when the concession was granted. U.S. CPI reflects Fitch's forecast
of 2.3% for 2020, 2.5% for 2021 and 2.0% afterwards. O&M and major
maintenance expenses were projected following the budget provided
plus 5.0%. Fitch's base case resulted in a minimum and average DSCR
of 1.1x and 1.3x, respectively. Fitch's base case expects no MRG
collections and a single mandatory redemption payment to be made as
restricted payment conditions will not be met for six consecutive
periods. Under this case, the concession will end in July 2033
(i.e. at the concession's maturity, due to the project reaching the
NPV specified in the concession agreement).

Fitch's revised Rating Case, which incorporates the potential
effect of the coronavirus into the Project's traffic levels,
assumes the 2020 traffic levels will be 20% lower than the ones
seen in 2019. For the rest of the years, Fitch is projecting a
traffic CAGR of 1.5% from 2021 to 2033; which considers, among
other factors, that the competing route would not be tolled. U.S.
CPI rates as used in Fitch's base case. O&M and major maintenance
expenses were projected following the budget provided plus 7.5%.
This scenario resulted in a minimum and average DSCR of 0.8X and
1.1x, respectively. Under this scenario, MRG will be received from
2023 to 2032.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3. ESG issuer are credit neutral
or have only a minimal credit impact on the entity, either due to
their nature of the way in which they are being managed by the
entity.

LA RIOJA PROVINCE: S&P Affirms 'CCC-' Rating, Off Watch Negative
----------------------------------------------------------------
S&P Global Ratings affirmed its 'CCC-' long-term foreign and local
currency ratings on the province of La Rioja. S&P also removed the
ratings from CreditWatch negative. The outlook is negative.

Outlook

S&P said, "The negative outlook reflects an at least one-in-three
likelihood of a downgrade during the next six months if there's
increasing evidence that the province will be incapable or
unwilling to service its commercial debt in time and in full. We
expect the province's budgetary performance and liquidity to remain
very weak given Argentina's prolonged recession, heightened by
recent and significant external shocks. We consider support from
the national government and access to debt markets as very unlikely
while Argentina is discussing its own debt management strategy with
bondholders, bankers, and the International Monetary Fund."

Downside scenario

S&P said, "We could lower the ratings in the next six months if the
province misses any upcoming debt service payment and we don't
expect it to pay within the grace period. An exchange offer or
similar restructuring that we would classify as distressed would
also result in a downgrade."

Upside scenario

S&P could raise the ratings on the province in the next 6-12 months
if unexpected and favorable economic and financial conditions help
the province's liquidity position strengthen amid a marked
improvement of La Rioja's strategy for timely payment of its
financial obligations.

Rationale

On March 20, 2020, the province met a $14.7 million interest
payment on its $300 million global notes due 2025 within the 30-day
grace period (for interest) established by the notes' terms and
conditions, by making use of its own liquidity. According to S&P's
methodology, "Timeliness Of Payments: Grace Periods, Guarantees,
And Use Of 'D' And 'SD' Ratings," it considers this payment as
timely. Therefore, S&P affirmed its 'CCC-' ratings on the province.
The original interest maturity was on Feb. 24, 2020.

The 'CCC-' ratings reflect La Rioja's current vulnerability to
nonpayment. S&P believes the province is dependent on favorable
business, financial, and economic conditions to meet its financial
obligations.

The province issued its only international bond in 2017 to finance
the construction of a wind farm. The first stage of the project
started operating in March 2020. Nonetheless, S&P considers
revenues generated from the partial opening of the project wouldn't
be enough to cover the province's debt service estimated at $50
million in the next 12 months. Estimates for the energy plant to
operate at full capacity are uncertain.

The province will continue to face severe liquidity pressures amid
the erosion of its revenue base and higher demand for social
spending given the prolonged Argentine recession, exacerbated by
the Covid-19 crisis, and global volatility caused by the collapse
in oil prices. Moreover, La Rioja is among the most vulnerable
provinces in the country to swings in national government funds
transfers, because they account for more than 85% of La Rioja's
operating revenue. Finally, amid fiscal stress, there are greater
risks for the province prioritizing social spending over timely
payment of debt service, in its view.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  Ratings List

  Ratings Affirmed; CreditWatch/Outlook Action  
                                   To             From
  La Rioja (Province of)
   Issuer Credit Rating   CCC-/Negative/--   CCC-/Watch Neg/--

  La Rioja (Province of)
   Senior Unsecured             CCC-         CCC-/Watch Neg


ODEBRECHT SA: To Hold Creditors Meeting Via Video on March 31
-------------------------------------------------------------
Tatiana Bautzer at Reuters reports that Brazilian conglomerate
Odebrecht SA has scheduled a creditors meeting to vote on its
restructuring plan today, March 31.  The meeting has been postponed
twice since December.

To comply with a lockdown in Sao Paulo, where the meeting was to be
held, a bankruptcy judge authorized remote voting and creditors
will log on and vote via video, according to Reuters.

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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B E R M U D A
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TEEKAY CORPORATION: Egan-Jones Cuts Sr. Unsec. Debt Ratings to B-
-----------------------------------------------------------------
Egan-Jones Ratings Company, on March 18, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Teekay Corporation to B- from B. EJR also downgraded
the rating on commercial paper issued by the Company to C from B.

Teekay Corporation is one of the largest shipowners in the world.
They specialize in crude oil, LNG and LPG tankers. The company
operates a number of Floating Production Storage and Offloading
under their subsidiary Teekay Petrojarl in the North Sea.




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B R A Z I L
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AVIANCA HOLDINGS: Egan-Jones Cuts Sr. Unsec. Debt Ratings to CC
---------------------------------------------------------------
Egan-Jones Ratings Company, on March 17, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Avianca Holdings SA to CC from CCC. EJR also
downgraded the rating on commercial paper issued by the Company to
D from C.

Avianca Holdings SA is a Latin American airline holding company
formed in February 2010 by the merger of two airlines, Avianca from
Colombia and TACA Airlines from El Salvador. The company is a
subsidiary of Synergy Group, a South American conglomerate based in
Rio de Janeiro, Brazil.


NEXA: S&P Affirms BB+/B ICR, Cuts Stand-Alone Credit Profile to bb-
-------------------------------------------------------------------
On March 25, 2020, S&P Global Ratings revised downward Nexa's
stand-alone credit profile (SACP) to 'bb-' from 'bb+'. At the same
time, S&P affirmed its 'BB+/B' issuer credit and 'BB+' issue-level
ratings on Nexa.

The positive outlook mirrors that on its parent company, Votorantim
S.A. (BBB-/Positive/--), which in turn mirrors that on Brazil
(BB-/Positive/B).

The declining trend in zinc and copper prices since 2019 was
intensified by the COVID-19 outbreak, which also resulted in
production stoppages in the company's Peruvian operations.
Uncertainties regarding the longevity of the closures in Peru and a
potentially similar action in Brazil hinder Nexa's ability to
contain leverage in 2020, while the company is committed to a
sizeable investments for it Aripuana project. S&P now expects
adjusted debt to EBITDA and funds from operations (FFO) to debt to
reach above 4x and below 20%, respectively, in 2020.

The company's solid cash position and very low short-term debt,
coupled with the access to a fully undrawn revolving credit
facility of $300 million, currently supports the 'bb-' SACP. S&P
believes Nexa has flexibility to adjust capex if volumes tumble due
to COVID-19 impact.

S&P said, "We continue to view Nexa as a highly strategic
subsidiary of Votorantim, which would provide, in our view,
extraordinary support if necessary. Therefore, we limit our rating
on Nexa to one notch below that on its parent company. In this
sense, the positive outlook on Nexa mirrors the outlook on
Votorantim, despite the former's weaker credit metrics."




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

DOMINICAN REPUBLIC: Most Hotels Cease Operations
-------------------------------------------------
Dominican Today reports that due to zero occupancy, most hotels in
the Dominican Republic have ceased operations for the moment.

The information source is the Hotel and Tourism Association of the
Dominican Republic (Asonahores), according to Dominican Today.

The brief explains the international evolution of COVID-19, as well
as the measures taken by the Dominican State aimed at protecting
the nation, have directly affected the Operation of the tourism
sector, the report notes.   The tourism sector depends mainly on
the arrival of tourists and investors by air, land, and sea so
that, once these borders closed, most hotels have found it
necessary to cease operations due to zero occupancy, the report
relates.

"If there are no flights, there can be no tourists. Therefore, the
country's hotels are closing.  Arrived on March 17, the tourists
who are still here must have already left.  These are difficult
times, and we must seek solutions in the short, medium, and long
term for those who work in our sector.  Something in which we have
been working together with the business community and the
authorities," Paola Rainieri, executive president of Asonahores,
told Diario Libre, the report notes.

He noted that in the Dominican Republic, it will take a minimum of
8 to 12 weeks to reopen the country's hotel facilities.

Asonahores indicates in the face of this calamity experienced by
the world and the Dominican Republic, "we assure that our hotels
and related companies have made all the necessary efforts to try to
reassign the work, affecting as few workers as possible. For
companies in the tourism sector, it is and has consistently been
their interest to preserve the continuity of employment contracts,
as demonstrated in the 2019 crisis," the report adds.

He adds that at present they are working "tirelessly hand in hand
with the State, seeking the most viable solution and the protection
of families living in the sector," the report relays.

"As we have already expressed to the highest levels of the country,
Asonahores and its members maintain their will and complete
disposition in order to collaborate continuously to overcome this
crisis together," he said, the report notes.

The tourism sector generates more than 350,000 direct and indirect
jobs in the Dominican Republic, and last year hoteliers bought $
870 million from the Dominican Republic's agricultural sector, the
report discloses.

Employees belonging to the closed hotels got sent home, the report
relates.  What is unknown is what precautionary measures these
companies took to ensure that these collaborators did not have
contact with foreigners or people with the symptoms of COVID-19,
the report says.

                    About Dominican Republic

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

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

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

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



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E C U A D O R
=============

ECUADOR SOCIAL: Fitch Downgrades Class B Debt to CCsf
-----------------------------------------------------
Fitch Ratings has affirmed the ratings of the class A 144A/Reg S
notes issued by Ecuador Social Bond S.a.r.l. (ESB) at 'AAAsf' and
at the same time downgraded class B 144A/Reg S notes to 'CCsf' from
'B-sf', given their linkage to Ecuador's Issuer Default Rating. The
rating action follows Fitch's downgrade of Ecuador's ratings on
March 19, 2020 to 'CCC' from 'BB-'/Stable, and further downgrade on
March 24, 2020 to 'CC' from 'CCC'. The Rating Outlook on class A
notes remains Stable.

RATING ACTIONS

Ecuador IDB Repack

Cl. A (secured) XS2106052827; LT AAAsf Affirmed; previously AAAsf

Cl. B (secured) XS2106053635; LT CCsf Downgrade; previously B-sf

The Social Bond, issued by Ecuador and partially guaranteed by the
Inter-American Development Bank (IDB; AAA/Stable), is the asset
backing the class A and B notes (together the repack notes). The
assigned ratings address timely payment of interest and principal
on a semi-annual basis.

KEY RATING DRIVERS

Social Bond's Credit Profile: The Social Bond issued by the
Republic of Ecuador is the asset backing the class A and B notes
issued by Ecuador Social Bond S.a.r.l. (ESB). The Social Bond
shares all characteristics of other external indebtedness of
Ecuador. The only difference is that its proceeds are for specific
investment in Ecuador's social housing program and its debt service
benefits from a partial credit guarantee by the Inter-American
Development Bank.

IDB's Partial Credit Guarantee: The partial credit guarantee
between the IDB and ESB as initial purchaser of the Social Bond
partially covers Ecuador's failure to meet its obligations on the
Social Bond. After Ecuador's default on the Social Bond, all draws
from the IDB guarantee will be exclusively applied by the Trustee
to cover 100% of class A's debt service, covering a percentage of
the underlying Social Bond. The IDB guarantee effectively covers
100% of the class A notes issued by ESB within the 23-day cure
period.

IDB's Strong Credit Quality: The rating assigned to the class A
notes is commensurate with the IDR of the guarantee provider.

Strength of the Partial Guarantee: IDB's obligations under the
guarantee will constitute direct, unsecured obligations of IDB. The
guarantee is comprehensive in scope, ensuring timely payment of
debt service on the class A notes through the financing structure.

Class B Notes Linked to Ecuador's Long-Term Foreign Currency IDR:
Given that all flows from the IDB guarantee will be applied to the
class A notes to meet debt service according to the guarantee's
schedule, a default by Ecuador under its obligations of the Social
Bond would lead to a default of ESB's obligations under the class B
notes. Hence, the credit quality of the class B notes is a
pass-through of Ecuador's rating, currently 'CC'.

RATING SENSITIVITIES

The class A notes' ratings are sensitive to changes in the
Long-Term Foreign Currency IDR of the IDB, and the class B notes'
ratings are sensitive to changes in Ecuador's Long-Term IDR.
Additionally, changes in Fitch's view regarding the strength of the
IDB guarantee may affect the class A notes' ratings.

ECUADOR: Default Odds Surge as Virus Prompts Calls for Moratorium
-----------------------------------------------------------------
Stephan Kueffner and Ben Bartenstein at Bloomberg News report that
Ecuador's Congress called on the government to suspend debt
payments to free up cash to deal with the coronavirus pandemic,
prompting JPMorgan Chase & Co. to warn of a potential default.

The South American nation's $3 billion of bonds due in 2028 fell
3.5 cents to a record low 31 cents on the dollar, pushing yields to
33%, according to Bloomberg News.  Ecuador has about $320 million
of debt due March 24 and coupon payments later within the week,
Bloomberg News says.

Lawmakers from all major parties want President Lenin Moreno's
administration to prioritize the coronavirus crisis, rather than
pay multilateral lenders and foreign creditors, according to a
statement, Bloomberg News notes.  Ecuador had 981 cases of Covid-19
and 18 deaths at last count, only behind Brazil with the most cases
in Latin America, Bloomberg News discloses.

"We think the government will feel intense political pressure to
comply, putting the payments in doubt," JPMorgan analysts Katherine
Marney, Trang Nguyen and Ben Ramsey wrote in a report. "Our
interpretation is that this announcement is timed to persuade the
government to cease that payment, Bloomberg News discloses.

The finance ministry didn't immediately comment on the
congressional request.

Still, halting payments could prove costly, preventing Ecuador from
receiving $5.5 billion in financing from multilateral lenders
including the International Monetary Fund, according to Alberto
Acosta Burneo, an economist at Grupo Spurrier in Guayaquil,
Bloomberg News says.

                          Buying Opportunity

The call from Congress is probably intended to get concessions from
Moreno's government on stimulus measures, and may be a way to nudge
the IMF into sending a relief package more quickly, said Oren
Barack, the managing director of fixed income at New York-based AGP
Alliance Global Partners, Bloomberg News says.

The government has a $4.2 billion financing agreement with the IMF
whose latest disbursal has been delayed over failure to meet
targets, Bloomberg News discloses.

"I'd be very shocked if Ecuador suspended payments," Barack said.
"At these prices, it's definitely an opportunistic buying
opportunity," Bloomberg News says.

Ecuador is the most distressed sovereign credit not currently in
default, Bloomberg News notes.  Investors demand 59 percentage
points more than U.S. Treasuries to hold the notes, according to
JPMorgan's EMBIG Diversified Index, Bloomberg News relates.
Moreno's government has vowed to stay current on its foreign bonds
and tried to push reforms as part of an IMF lending agreement
before the virus hit, Bloomberg News discloses.

                            Political Pressure

If Ecuador makes March 24 payment, it would be only the second time
it has repaid a bond in its history dating back to 1830, Bloomberg
News notes.

"A disruptive default would not be in their best interest," said
Shamaila Khan, the New York-based head of emerging-market debt at
AllianceBernstein, which holds Ecuador bonds, Bloomberg News says.

But other investors say Moreno has little incentive to pay,
Bloomberg News discloses.

"What's the point?" said Patrick Esteruelas, the head of research
at Emso Asset Management in New York, Bloomberg News says.  "You
have $600 million in principal and interest payments, Treasury
deposits at just over $800 million, Covid-19 spreading like
wildfire and all the political parties basically boxing you into a
corner by removing support for payment," he added.

The crisis has undermined the nation's exports, with oil revenue
curtailed by the plunge in crude prices and other industries hit by
a strong dollar, Bloomberg News notes.  At the same time, its
central bank can't print money to provide liquidity as Ecuador uses
the dollar as its official currency, Bloomberg News says.

"There is clear urgency for seeking external capital and broader
debate is necessary about whether a default would backfire,"
Siobhan Morden, head of Latin America fixed income strategy at
Amherst Pierpont Securities, wrote in a note, Bloomberg News adds.

As reported in the Troubled Company Reporter-Latin America on March
24, 2020, Fitch Ratings has downgraded Ecuador's Long-Term Foreign
Currency Issuer Default Rating to 'CCC' from 'B-'.

Fitch typically does not assign Outlooks or apply +/- modifiers for
sovereigns with a rating of 'CCC' or below.

ECUADOR: S&P Cuts Sov. Credit Ratings to 'CCC-/C', On Watch Neg.
----------------------------------------------------------------
On March 25, 2020, S&P Global Ratings lowered its long- and
short-term sovereign credit ratings on Ecuador to 'CCC-/C' from
'B-/B'. S&P also placed the ratings on CreditWatch with negative
implications. In addition, S&P lowered its transfer and
convertibility assessment for Ecuador to 'CCC-' from 'B-'.

CreditWatch

S&P said, "The CreditWatch negative placement reflects at least a
1-in-2 likelihood of a downgrade to 'SD' during the next few weeks
if we conclude that Ecuador will not be able or willing to service
the interest payments on its 2022, 2025, and 2030 bonds before the
grace period expires. We could also downgrade the sovereign if the
government were to propose a debt exchange that we would consider a
distressed debt exchange, based on our criteria. We could remove
the ratings from CreditWatch if the government makes the payment
before the 30-day grace period expires."

Rationale

The 'CCC-/C' ratings reflect S&P's view that a default, distressed
exchange, or redemption appears inevitable within the next six
months. Ecuador depends on favorable business, financial, and
economic conditions to meet its financial obligations.

The administration of President Lenin Moreno, which had earlier
entered into an Extended Fund Facility program with the
International Monetary Fund, has announced austerity measures to
counterbalance the recent negative shock to public finances,
highlighting its commitment to stabilize the economy. Nonetheless,
policy execution remains subject to growing political challenges.
Amid rising pressures from the COVID-19 pandemic, opposition
parties in Congress recently asked the government to suspend debt
service payments.

The government announced on March 23, 2020, that it would delay the
March 27 coupon payments on global bonds maturing in 2022, 2025,
and 2030, for a total of $200 million. The government plans to
immediately devote more resources to meet health care needs while
securing funding from multilateral creditors.

S&P's ratings on Ecuador are constrained by elevated financing
needs, external vulnerabilities, weak institutions, relatively low
wealth levels, and lack of monetary and exchange rate flexibility.
With weak domestic capital markets, Ecuador's rating trajectory
depends on its access to official and external commercial financing
to cover the government's financing needs and support foreign
exchange reserves.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  Ratings List

  Downgraded; CreditWatch/Outlook Action  
                                             To         From
  Ecuador
   Sovereign Credit Rating       CCC-/Watch Neg/C    B-/Stable/B

  Ecuador
   Senior Unsecured              CCC-/Watch Neg      B-

  Downgraded  
                                             To         From
  Ecuador
   Transfer & Convertibility Assessment   
   Local Currency                            CCC-       B-


EMPRESA PUBLICA: Fitch Downgrades Sr. Unsec. Notes Rating to CC
---------------------------------------------------------------
Fitch Ratings has downgraded the senior unsecured notes issued by
Empresa Publica de Exploracion y Explotacion de Hidrocarburos
Petroamazonas EP (PetroAmazonas) due in November 2020 to 'CC'/'RR4'
from 'CCC'/'RR4'. The notes have a total amount of approximately
USD300 million outstanding. The rating action follows Fitch's
recent downgrade of the Republic of Ecuador to 'CC' from 'CCC'.

PetroAmazonas' senior unsecured notes rating reflect those of
Republic of Ecuador as a guarantor. The notes are fully covered by
a sovereign guarantee, which constitutes a general, direct,
unsecured, unsubordinated and unconditional obligation of the
sovereign. The guarantee is backed by the full faith and credit of
the Republic of Ecuador and ranks equally in terms of priority with
other sovereign debt. This linkage reflects PetroAmazonas'
importance to the government of Ecuador as the main supplier of the
country's energy supply and a large contributor of U.S.
dollar-linked revenues.

The indenture of the notes carry a cross-default clause determining
that principal and interest are due and payable should (i) the
guarantor fail to comply to its debt service in an amount greater
than USD50 million and (ii) the holders of over USD50 million of
the notes declare principal and interest to be due and payable
prior to its original maturity.

KEY RATING DRIVERS

The downgrade of Ecuador's Long-Term Foreign Currency Issuer
Default Rating (IDR) to 'CC' signals its expectation that a default
of some kind is probable following the announcement by the
authorities of their intent to renegotiate the terms of commercial
debt liabilities while using the grace period on bond coupons due
this week. This renegotiation, should it occur, is likely to
culminate in a distressed debt exchange (DDE) in Fitch's view.
Should this renegotiation not occur, there is a risk that the
pending coupon payments or future ones could be missed when their
grace periods elapse. Both scenarios would constitute default
events under Fitch's criteria.

On March 23, 2020, the Ecuadorian authorities announced their
intention to pay the USD325 million Global 2020 bond maturity due
on March 24, and to make use of the 30-day grace period on USD200
million in coupon payments (Global 2022, 2025 and 2030 bonds) due
later in the week as they pursued a "consensual reorganization" of
payments of both commercial and official-sector debt obligations. A
renegotiation of commercial debt, should it occur, is likely to
fulfill Fitch's criteria for a DDE as an operation taken to avoid a
traditional payment default and reduce bondholders' terms.

In recent days, congressional leaders have called for a temporary
suspension of external debt repayment, and possibly permanent debt
forgiveness as well, citing a health emergency. In view of this
pressure, Fitch believes that Ecuador's ability to continue to
paying bond coupons may be increasingly difficult to sustain in
political and economic terms in the coming months, should a debt
renegotiation not be reached.

This announcement follows a series of adverse developments that
have severely constrained the sovereign's liquidity position,
including the sharp fall in oil prices, loss of capital market
access and delays in expected disbursements from the IMF and other
multilateral banks. Fitch downgraded Ecuador's ratings to 'CCC' on
March 19, 2020 to highlight growing challenges to debt repayment
capacity and willingness, posing a real possibility of default of
some kind. Fitch expects that emergency funding from multilaterals
could be forthcoming in the context of the health emergency, based
on recent statements by the IMF and authorities, but that this
would not be of a magnitude sufficient to overcome challenges to
debt repayment capacity and willingness for an extended period.

DERIVATION SUMMARY

The rating of PetroAmazonas' notes linkage to the sovereign is
similar in nature to its peers YPF S.A. (CCC), Petroleo Brasileiro
S.A. (Petrobras, BB-/Stable), Ecopetrol S.A. (BBB/Negative),
Petroleos Mexicanos (BB+/Negative), Petroleos del Peru - Petroperu
S.A. (BBB+/Stable) and Empresa Nacional del Petroleo (ENAP,
A/Negative). These companies all have strong linkage to their
respective sovereigns given their strategic importance to each
country and the potentially significant negative sociopolitical and
financial implications their financial distress would have for
their countries.

The 'CC'/'RR4' rating on PetroAmazonas's notes reflects its close
linkage with the sovereign rating of Ecuador due to its strategic
importance to the country as one of the largest suppliers of crude
oil. Ecuador depends on oil exports as a significant source of hard
currency for the country, which historically has represented 50% of
the country's exports. The sovereign linkage is further evidenced
by the sovereign guarantee provided to PetroAmazonas to cover its
debt obligations under the notes.

PetroAmazonas is well positioned relative to its peers in terms of
reserves, reserve life, and debt/1P reserves. Despite adequate
production levels and reserve life, political risk remains high for
the company as its revenue generation totally depends on fund
transfers from the government and timing for receiving them.

KEY ASSUMPTIONS

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

  -- Senior unsecured notes fully guaranteed and paid by the
Republic of Ecuador in 2020;

  -- Approved budget and consequent government transfers will be
enough to cover operating expenses, capex investments and debt
service payments.

RATING SENSITIVITIES

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

  -- An upgrade of the sovereign.

The main factors that could lead to a positive rating action on
Ecuador:

  -- A sustained alleviation of sovereign financing constraints for
example due to materialization of a large-scale financing source
that reduces the probability of default.

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

  -- A downgrade of the sovereign.

The main factors that could lead to a negative rating action on
Ecuador:

  -- Launch of a formal debt renegotiation by the authorities that
Fitch deems to constitute a DDE;

  -- Failure to pay bond interest payments within grace periods
stipulated in relevant documentation, or unilateral declaration of
a debt moratorium.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch included adjustments to company reported values, mainly
associated to revenues. The company does not report any revenues.
The Republic of Ecuador has not defined an income model in order to
compensate Petroamazonas directly for is production efforts.
Instead, the majority of Petroamazonas' operations are funded
through an annual contribution from the Ministry of Finance in an
amount equal to the General Budget approved by its board of
directors. Given that this is the main source of income for the
company, Fitch adjusted these contributions and reflected them as
revenues.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Petroamazonas is a government-related entity, and its ratings are
equalized to those of Ecuador, which had its IDR downgraded to 'CC'
on March 24, 2020.



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

JAMAICA: Farmers Feeling Effects of Hotel Closures
--------------------------------------------------
RJR News reports that the closure of some hotels and restrictions
on opening time for markets due to the COVID-19 crisis have started
to have a ripple effect on farmers.

Several farmers from southern St. Elizabeth say they are
experiencing losses as vendors are purchasing less, according to
RJR News.

The farmers from communities such as Newell, Flagaman and Pedro
Plains say they have been forced to feed the excess crops to
animals, 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.

JAMAICA: Minister to Say Whether Jamaica Will Seek IMF Help
-----------------------------------------------------------
RJR News reports that it will be known whether Jamaica is among 80
countries which have approached the International Monetary Fund
(IMF) for help amid the coronavirus outbreak.

The issue is to be addressed by Finance Minister Dr. Nigel Clarke
when he closes the Budget Debate in the House of Representatives,
according to RJR News.

The IMF has predicted a recession for 2020 which could be worse
than the one experienced in 2008, the report notes.

It said it will massively step up emergency finance and stands
ready to deploy its full one trillion US dollar lending capacity,
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
===========

BANCO AHORRO: Moody's Reviews B1 Deposit Ratings for Downgrade
--------------------------------------------------------------
Moody's de Mexico placed Banco Ahorro Famsa, S.A.'s B1 long-term
global local and foreign currency deposit ratings and Ba3(cr)
long-term counterparty risk assessment on review for downgrade.
This follows Moody's decision to place BAF s b1 standalone baseline
and adjusted baseline credit assessments of b1 on review for
downgrade. Moody's also placed on review for downgrade BAF's long-
and short-term Mexican National Scale deposit ratings of
Baa3.mx/MX-3.

Moody's affirmed BAF's short-term global local and foreign currency
deposit ratings at Not Prime and the bank's short-term counterparty
risk assessment at Not Prime(cr).

The following ratings and assessments of Banco Ahorro Famsa, S.A.
(820539657) were placed on review for downgrade:

  - Baseline Credit Assessment of b1

  - Adjusted baseline credit assessment of b1

  - Long-term global local currency deposit rating of B1, outlook
changed to ratings under review, from stable

  - Long-term global foreign currency deposit rating of B1, outlook
changed to ratings under review, from stable

  - Long-term Mexican National Scale deposit rating of Baa3.mx

  - Short-term Mexican National Scale deposit rating of MX-3

  - Long-term counterparty risk assessment of Ba3(cr)

  - Outlook, changed to ratings under review, from stable

The following ratings and assessments of Banco Ahorro Famsa, S.A.
(820539657) were affirmed:

  - Short-term global local currency deposit rating: Not Prime

  - Short-term foreign currency deposit rating: Not Prime

  - Short-term counterparty risk assessment of Not Prime(cr)

RATINGS RATIONALE

Moody's placed BAF's ratings on review for downgrade to reflect
increasing asset risks stemming from high levels of nonperforming
loans (NPLs) and related party exposures that could constrain the
bank's already low and volatile profitability. The review will
focus on BAF's ability to lower its problematic risk exposures in
light of the slowdown in economic growth in Mexico combined with
the negative effects of the recent coronavirus crisis on overall
business activity. Unfavorable conditions could limit the bank's
ability to resolve NPLs and conclude the sale of assets received in
lieu of payment, which in turn, would weaken BAF's core
capitalization. BAF's profitability nevertheless will benefit from
lower funding costs, as time deposits reprice at lower rates. The
bank's retail core deposit base remains its key strength.

Moody's noted that BAF's NPL ratio increased to 14.65% as of
year-end 2019, from 12.16% a year ago, because much slower economic
growth in the year has delayed the benefits of new loan origination
and collection processes. Although new loan origination processes
have reported NPL ratios closer to 10%, a credit positive, healthy
growth in the bank's target market of lower income individuals will
be more difficult to achieve during 2020.

Moreover, the expected economic deceleration and the more
challenging operating conditions related to the outbreak of the
coronavirus could also delay BAF's plans to sell real estate assets
it has received since September 2019 from its holding company,
Grupo Famsa, S.A. de C.V. as payment for account receivables. BAF
had traditionally accumulated accounts receivables with Grupo Famsa
because of an arrangement whereby loans past due for more than 10
months were transferred to the holding company for a more effective
collection process. Accounts receivables increased to 19% of gross
loans as of year-end 2019, from 13% in the year prior. However,
Moody's believes that accounts receivables from Grupo Famsa expose
the bank to undue asset risks because of the difficulties the
holding company has had in refinancing a large debt issuance.

BAF's total regulatory capital ratio was also affected by increased
related party exposures. The bank's much lower total regulatory
capital ratio decreased to 10.6% as of year-end 2019, from 12.5% as
of year-end 2018, which puts it just ten basis points above early
warning systems of the bank regulator. This adjustment shaves
almost 400 basis points out of Moody's preferred capitalization
ratio of tangible common equity to risk-weighted assets of 14.1% as
of year-end 2019.

The bank's profitability has been low and volatile during 2019, as
a result of high credit costs stemming from the bank's continued
incorporation of another set of accounts receivables, from its
sister finance company Impulsora Promobien, S.A. de C.V. into the
bank's loan portfolio. Promobien offers payroll-linked loans to
individuals and its portfolio traditionally was ceded to the bank
and accounted as collection rights at a discount. The bank's
profitability will nevertheless benefit from lower funding costs
following interest rates cuts in Mexico. Although the bank benefits
from access to granular and stable deposits sourced from
individuals, these tend to be time deposits, which take longer to
reprice. With almost no reliance on market funding, the bank's
loan-to-deposit ratio was a low 75.3% as of December 2019.

WHAT COULD CHANGE THE RATING UP/DOWN

In line with the review for downgrade, there is limited upward
pressure on BAF 's ratings. However, the ratings could be affirmed
at their current level if the bank is able to substantially sell
assets received in lieu of payment and lower accounts receivables
with its holding company, both of which are negatively affecting
the bank's asset quality and capitaliztion.

Conversely, the ratings could be downgraded because of the
persistence of high asset risks. Downward ratings pressure will
mount if the bank is unable to sell the assets received in lieu of
payment or lower accounts receivables in the short-term.

The principal methodology used in these ratings was Banks
Methodology published in November 2019.

The period of time covered in the financial information used to
determine Banco Ahorro Famsa, S.A.'s rating is between December 31,
2016 and December 31, 2019.

GRUPO POSADAS: S&P Downgrades ICR to 'CCC+' on Travel Downturn
--------------------------------------------------------------
On March 25, 2020, S&P Global Ratings lowered its long-term global
scale issuer credit and issue-level ratings on Grupo Posadas S.A.B.
de C.V. to 'CCC+' from 'B'.

S&P said, "In our view, the coronavirus spread represents a
transformational event for the global lodging and leisure industry,
triggering massive group hotel booking cancellations and deferrals,
causing occupancy, average daily rates and revenue per available
room (RevPAR) at hotels to tumble, in addition to stress on
timeshare sales and recurring revenues. These factors have eroded
demand for Posadas' lodging services. According to the company,
occupancy rates have decreased below 20% in the past days,
significantly lower than historic levels of around 70%. This will
likely imply high double-digit declines in Posadas' average daily
rates and RevPAR, paralyzing its cash generation at least during
the second quarter of 2020, coupled with frail recovery prospects
for the second half of the year, even if the virus is contained.
This has led us to revise downward our assumptions for 2020,
including a double-digit drop in sales and a net leverage ratio
well above 10x for year-end 2020. In our last review, we expected
several factors that could reduce market appetite for the
refinancing of Posadas' 7.875% senior unsecured notes such as
sluggish economy, budget cuts to tourism and rising security
issues, but ramifications of the novel coronavirus shock add
significant pressure to the company's debt refinancing and its
capacity to service its debt obligations, absent any relevant
improvement of business and economic conditions."

These measures include shutting down 76 managed hotels with 14,955
rooms (equivalent to 49% of managed inventory), cutting
non-essential expenses and deferring a significant portion of
capital expenditures originally budgeted for 2020, with the
exception of final works on one hotel and maintenance investments.
S&P said, "We consider that these measures will protect the
company's liquidity in the next couple months. Nevertheless,
depending on the depth and durability of the downturn in travel and
lodging, and on anticipated recession in Mexico and the U.S., the
range of outcomes could vary widely for Posadas' EBITDA, cash
generation, and liquidity this year. We estimate Posadas' RevPAR to
plummet about 30% in 2020, which would increase the company's
highly leveraged position, temporarily bumping our adjusted debt to
EBITDA above 10x and lowering EBITDA interest coverage just above
1.0x, when including the company's lease commitments." Moreover, a
significantly weakened EBITDA and cash generation, coupled with tax
commitments near MXN360 million, could imply using a substantial
portion of the company's cash reserves if the company's latest
measures remain insufficient to mitigate the coronavirus shock.
Posadas also announced its current cash position of about MXN1.6
billion, of which about $51 million are denominated in dollars,
equivalent to slightly more than 12 months of debt service. Cash
position includes two asset sales for MXN348 million during the
first two months of 2020, and the company expects to sell another
hotel in the near term, which would add about MXN190 million to its
cash reserves.


NEMAK SAB: Moody's Places Ba1 CFR on Review for Downgrade
---------------------------------------------------------
Moody's Investors Service placed the Ba1 senior unsecured and
corporate family ratings of Nemak, S.A.B. de C.V. under review for
downgrade.

RATINGS RATIONALE

The review for downgrade was driven by the negative effect in the
auto sector of the rapid and widening spread of the coronavirus
outbreak, deteriorating global economic outlook, and falling oil
prices that are creating a severe and extensive credit shock across
many sectors, regions and markets. The auto industry has been one
of the sectors most significantly affected by the shock given its
sensitivity to supply chain disruptions as well as to consumer
demand and sentiment. Given the negative effects from the
coronavirus outbreak, Moody's now expects global auto unit sales to
decline by about 14% in 2020.

Nemak has a leading position in the aluminum engine blocks and
cylinder heads markets and is growing its structural and electric
vehicle components business. Nonetheless its revenues are
concentrated in the top three US automakers, which together account
for 60% of consolidated revenues. Furthermore, Nemak's main markets
(Western Europe and North America) that account for 91% of its
revenue will also show a stronger contraction in 2020 from the
effects of the coronavirus outbreak. Moody's expects US light
vehicle sales to fall at least 15% in 2020.

The review will consider the outbreak's impact on global auto
demand and on Nemak's manufacturing operations. A number of
automotive original equipment manufacturers and other auto parts
suppliers have already temporarily closed facilities in order to
ensure the safety of their employees. The review will assess the
impact from facility closures and global automotive production
declines in the coming quarters. The review will also consider the
lingering impact of diminished consumer demand, and the automotive
production, resulting from consumer concerns over contracting
coronavirus, and regional government policies restricting consumer
movement over coming quarters. The review will aggregate these
concerns in conjunction with the liquidity profiles of the issuers
placed under review for downgrade. The level of cash, availability
under liquidity facilities, financial maintenance covenant
pressure, and the necessity of refinancing debt maturities coming
due over the next 12-24 months will be major considerations Moody's
review.

Nemak has cash on hand of $312 million as of December 31, 2019 that
can cover by 2.5x its debt maturities due in 2020. The company does
not have major debt maturities until 2024. Further supporting its
liquidity, Nemak has a $400 million committed credit facilities
(100% available) maturing in 2021-23 as well as advised credit
facilities totaling $700 million.

Nemak's ratings could be downgraded if its margins are affected by
the unfavorable market dynamics or adverse changes in the company's
market position. A deterioration in liquidity with negative free
cash flow (FCF) generation or a worsening of its credit metrics,
with adjusted debt/EBITDA increasing over 3.0x or adjusted
EBITA/interest expense declining below 3.3x, on a sustained basis,
could also lead to a downgrade.

The principal methodology used in these ratings was Automotive
Supplier Methodology published in January 2020.

Nemak is a subsidiary of Alfa, S.A.B. de C.V. (Baa3 stable), a
publicly traded Mexican business group. Nemak produces aluminum
cylinder heads, engine blocks, transmission components, and
structural and electric vehicle components for light vehicles
manufactured by more than 50 customers worldwide, with 60% of its
sales volumes coming from the Big Three US carmakers (Ford Motor
Company, General Motors Company and Fiat Chrysler Automobiles
N.V.). Nemak's products are sold mainly in North America and
Europe, which account for 91% of its consolidated revenue. In 2019,
Nemak reported revenues of $4.0 billion.



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

LIBERTY CABLEVISION: Fitch Affirms B+ LT Foreign-Currency IDR
-------------------------------------------------------------
Fitch Ratings has affirmed all of Liberty Cablevision of Puerto
Rico LLC's ratings, including the Long-Term (LT) Foreign Currency
Issuer Default Rating of 'B+'/Outlook Stable, and the senior
secured debt rating of 'BB-'/'RR3'. The affirmation reflects the
company's recovery from the hurricanes, including the improvement
in LCPR's financial profile and the restoration of service. The
company's senior secured debt is rated one notch above the IDR due
to above-average recovery prospects.

LCPR's ratings continue to reflect the company's strong business
position in pay-TV and broadband services in Puerto Rico. The
ratings are tempered by LCPR's lack of diversification, making it
vulnerable to weak macroeconomic conditions in Puerto Rico. In
October 2019, LCPR announced the acquisition of AT&T Inc.'s (ATT;
A-/Stable) operations in Puerto Rico and the U.S. Virgin Islands.
The transaction is expected to close in the second quarter of
2020.

KEY RATING DRIVERS

Improved Scale and Diversification: Fitch expects LCPR to
approximately triple in size, following the closing of the
acquisition. Fitch expects revenues in the USD1.2 billion-USD1.3
billion range, with EBITDA generation in the USD500 million-USD550
million range over the rating horizon. The combined entity should
benefit from economies of scale, as well as enhanced product
offerings across both mobile and fixed, which should contribute
around 2/3 and 1/3 of the company's revenues, respectively. There
are not significant overlaps in the product portfolio; however,
execution and integration risk remain high given the size of the
acquisition.

Stronger Market Position: The combined entity boasts leading market
shares in both wireless and broadband (37% and 53%, respectively,
as of YE2018, per management estimates) in Puerto Rico. While the
merger of T-Mobile and Sprint would present a formidable mobile
competitor with a similar market share, neither company has a
broadband presence on the island. America Movil S.A.B. de C.V.'s
Claro has 47% broadband share, and 26% mobile market share,
although AT&T's mobile subscriber base is weighted towards
post-paid, while America Movil's is more heavily weighted towards
prepaid. Puerto Rico's mobile base comprises mostly 4G post-paid
customers, which compares favorably with other markets in Latin
America and the Caribbean. AT&T also has a mobile market share of
49% in the USVI.

Recovery from Hurricane: LCPR's standalone financial profile has
strengthened considerably following the hurricanes with leverage
declining from a maximum of over 10.0x on an LTM basis at
third-quarter 2018, as the company largely restored service by YE
2018. Fitch has upgraded the LCPR's IDRs twice following the
downgrade to the company after Hurricanes Irma and Maria in
third-quarter 2017. Fitch expects that the combined company will
maintain net leverage around 4.0x-4.5x, in line with sister
companies CWC and VTR.

Linkages with Liberty Latin America: LLA's financial management
strategy involves moderately high amounts of leverage across its
operating subsidiaries, each ring-fenced from one another. While
the credit pools are legally separate, LLA has a history of moving
cash around the group for investments and acquisitions. This
approach improves financial flexibility; however, it also limits
the prospects for deleveraging. The high degree of cash movement
throughout the group supports an eventual equalization of ratings;
especially given LCPR's recovery and new scale compared with CWC
and VTR following the completion of the merger.

Acquisition Pressures Group's Capital Structure: Net debt across
the group should rise by USD1.95 billion to finance the
acquisition. Fitch expects net debt to EBITDA of approximately 4.6x
at the LLA level, up from around 4.0x. While Fitch does not rate
LLA, the rated subsidiaries are ultimately responsible for
servicing the group's consolidated debts, including the USD403
million convertible bond due 2024. Fitch expects modest increases
in net leverage at both CWC and VTR of around 0.2x-0.4x as they
issue new debt and LLA extracts excess cash to fund the capital
contribution. While net leverage across the rated entities should
remain in the 4.0x-4.5x range, consolidated LLA leverage is high
for the rating category, and could result in a negative action for
CWC and VTR in the future.

Cash Flow Expected to Improve: Pre-merger, LCPR and AT&T generated
adjusted EBITDA margins of approximately 50% and 39%, respectively,
which results in a pro forma EBITDA margin of 42%. Consolidation of
shared functions should drive modest efficiencies in both costs and
capex, improving FCF. The company's strong market position and the
limited size of the mature island markets both act as natural
barriers to entry, which supports EBITDA margins above 40%. Capital
intensity has moderated since network restoration, which was
largely completed in second-half 2018, and should continue
declining in the medium term to around 14%-16%.

Mixed Operating Environment Trends: LCPR benefits somewhat from a
dollarized economy with relatively high GDP per capita and
favorable systemic governance characteristics. Unfortunately, GDP
for the island, along with population, is still below pre-Hurricane
levels, and the overall prospects for growth remain highly
uncertain. Political instability is also a negative, as is
stubbornly high unemployment. The U.S. government has allocated
USD950 million for network improvements in PR and the USVI, along
with USD9 billion for infrastructure funds thus far. Combined with
the restructuring of Puerto Rico's debt, the new funds could
provide the island with an economic boost.

Environmental Impacts: LCPR scores a 4 on Exposure to Environmental
Impacts, owing to its presence in a hurricane-prone region.

DERIVATION SUMMARY

Following the completion of the acquisition, LCPR's credit profile
should be in line with CWC and VTR's. Each is expected to maintain
EBITDA net leverage above 4.0x, and each has a strong competitive
position in their respective markets, which is offset by their lack
of geographic diversification on an individual basis. LLA's
financial management strategy of keeping net leverage above 4.0x
and moving cash around the group to fund acquisitions and
investments will likely result in the eventual equalization of
ratings across the three credit pools.

Compared with Caribbean peer Digicel International Finance Limited
(B-/Stable), LCPR has a more diversified product portfolio, which
is more subscription based, and a less leveraged capital structure.
Furthermore, consolidated leverage at the parent is much lower at
LLA (NR) than at Digicel Group Limited (CC).

LLA has a business profile similar to Millicom International
Cellular SA's (MIC; BB+/Stable), a holding company whose
subsidiaries have leading positions in several markets. LLA's
revenue base has a higher proportion of dollars and subscription
revenues, while Millicom's revenues are primarily local currency
denominated.Both have seen leverage increase as a result of
acquisitions. However, LLA's leverage remains higher than MIC's,
which Fitch expects to decline to 2.5x-3.0x over the medium term.

Compared with 'BB' category peer Axtel S.A.B. de C.V., LCPR has a
stronger competitive position, owing to its scale in its main
market, which is offset by its higher leverage. Similar to 'BB'
category peer Empresa de Telecomunicaciones de Bogota (ETB,
BB+/Stable), LCPR is not geographically diversified. LCPR has a
stronger competitive position and better product diversification,
which is more than offset by its higher leverage.

Fixed Operations:

  -- Fixed RGUs to grow by approximately 1% overall, as growing
broadband penetration offsets flat to declining Pay TV and
telephone over the medium term;

  -- Blended Fixed ARPU in the USD38-USD40 range as increases in
broadband offset decreasing Pay TV and telephone over the medium
term;

  -- Programming and other direct costs of service to decline as a
percent of revenues as Pay TV revenues decline, with SG&A and other
operating expenses to grow slightly faster than inflation.

Mobile Operations:

  -- Postpaid RGUs to grow in the 2%-3% range, with ARPUs declining
by approximately 1%-2%;

  -- Blended EBITDA margins of 40%-42% over the medium term,
equivalent to USD500 million-USD550 million;

  -- Capex of around USD180 million-USD200 million, or
approximately 14%-16% of revenues.

Fitch projects recovery rates in the 50%-70% range, consistent with
an 'RR3'. The recovery analysis assumes that LCPR would be
reorganized as a going-concern in bankruptcy rather than
liquidated. Fitch has assumed a 10% administrative claim. Fitch
estimates a GC EBITDA of approximately USD245 million, which is
roughly equivalent to a 50% decline for the combined business.
Fitch uses an EV/EBITDA multiple of 6.0, between the 5.0x
historical used for LCPR and the 6.5x multiple that LLA is paying
for AT&T's assets.

RATING SENSITIVITIES

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

A positive rating action is contingent on successful closing of the
transaction, along with the prospect of deleveraging at the
consolidated LLA level to below 4.5x net debt/EBITDA.

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

An erosion of the company's business position and/or sizable cash
upstream for M&A or dividends, leading to net debt/EBITDA over 5.0x
could trigger a negative rating action.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: LCPR had $50 million in readily available cash
and equivalents, and another $1.25 billion in restricted cash as of
Dec. 31, 2019, and no short-term debt. The company benefits from
its long dated maturity profile, and the financial flexibility that
LLA enables by moving cash between the three credit pools. The
company also has access to a $125 million revolving credit
facility, which further bolsters liquidity.

In fourth-quarter 2019, LCPR refinanced their existing credit
facilities, replacing the $850 million first lien and $93 million
second lien term loans with a new secured $1.0 billion dollar term
loan due 2026. The company also issued $1.2 billion senior secured
notes, the proceeds of which were put into escrow to fund the
acquisition of AT&T's assets in PR and USVI.

The company's network rebuild was completed ahead of Fitch's
expectations. With normalized EBITDA and capex, the company should
be able to generate positive free-dividend cash flow. Fitch expects
that the combined entity will be managed similar to LLA's other
operating subsidiaries, with moderately high levels of leverage,
and excess cash being used for dividends and M&A. The combined
entity should also benefit from economies of scale

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch capitalized operating leases expenses for adjusted leverage
metrics.

ESG CONSIDERATIONS

LCPR scores a 4 on Exposure to Environmental Impacts, owing to its
presence in a hurricane-prone region. Scores of 4 indicate factors
that are not key drivers to a rating, but can have an impact in
combination with other factors.

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3 - ESG issues are credit
neutral or have only a minimal credit impact on the entity, either
due to their nature or the way in which they are being managed by
the entity.

POPULAR INC: S&P Alters Outlook to Stable, Affirms 'BB-' ICR
------------------------------------------------------------
S&P Global Ratings revised its outlooks on six U.S. and Puerto
Rican banks to stable from positive: BancorpSouth Bank, FirstBank
Puerto Rico, Popular Inc., TCF Financial Corp., Texas Capital
Bancshares Inc., and Western Alliance Bank.

At the same time, S&P affirmed its issuer credit ratings on each
institution and its subsidiaries, where relevant:

  BancorpSouth Bank: 'BBB/A-2'
  FirstBank Puerto Rico: 'BB-'
  Popular Inc.: 'BB-/B'
  TCF Financial Corp.: 'BBB-/A-3'
  Texas Capital Bancshares Inc.: 'BB+'
  Western Alliance Bank: 'BBB-'

S&P said, "The outlook revisions primarily reflect our view that
the emerging economic downturn associated with the COVID-19
pandemic, as well as net interest margin pressures given recent Fed
rate cuts, has significantly diminished the probability that we
will raise our ratings on these banks."

"Our ratings on these institutions are all one notch or more below
our 'bbb+' U.S. bank anchor--which is the starting point for the
ratings and reflects our view of economic and industry risks."

Recent actions by the Federal Reserve have increased liquidity for
the banking industry. But the economic fallout and current
ultra-low interest rates will likely lead to substantially lower
earnings and significantly worse asset quality, particularly in
industries more affected by the virus outbreak.

S&P will reassess its outlooks and ratings on these banks as needed
as conditions change, after considering peer relativities at each
rating level.

BancorpSouth Bank

S&P said, "The outlook revision on our ratings on BancorpSouth Bank
reflects our view that the heightened liklihood of an economic
downturn may hurt the bank's loan credit quality, fee income, and
profits. We also believe that the recent large Fed rate cuts pose a
headwind to BancorpSouth's net interest margin and could weigh on
the bank's net interest income, which accounts for 70% of its total
net revenues."

"While credit quality metrics have improved over the past several
years, we expect the current economic uncertainty to cause some
credit deterioration in the loan portfolio. Construction and
development, a higher-risk lending activity, is 10% of
BancorpSouth's loans, though the company has meaningfully
diversified the geographical and lending type diversity of its loan
portfolio in recent years."

"We believe the company's healthy capital position, adequate
on-balance-sheet liquidity, and greater geographic and product
diversification than during the last downturn leave it less
vulnerable to individual sectors and will help to sustain it
through what will likely be volatile economic conditions over the
next year."

The bank's regulatory capital ratios increased in 2019 because of
good earnings results and the issuance of preferred stock and
subordinated debt in the latter part of the year.

Outlook

The stable outlook on BancorpSouth indicates that the bank will
maintain adequate capital levels and manage earnings pressure due
to lower market interest rates and higher provision expenses. We
expect nonperforming assets (NPAs) and net-charge offs (NCOs) to
increase.

S&P could lower the ratings if loan performance deteriorates
meaningfully, or if the bank adopts what it views as less
conservative business or financial policies.

Although unlikely in the current economy, S&P could raise the
ratings over the next two years if it believes the bank would
increase its S&P Global Ratings risk-adjusted capital ratio
sustainably above 10%, which could result from a reduction in its
share buybacks, stabilization in its dividend payout ratio, or
less
acquisition activity.

FirstBank Puerto Rico

S&P said, "We revised our ratings outlook on FirstBank Puerto Rico
based on our view that the heightened likelihood of an economic
downturn has increased risks to asset quality. Under these
circumstances, we believe that the positive effects of the Banco
Santander acquisition could be muted and synergies may take
somewhat longer to materialize than we had previously
anticipated."

"We also believe FirstBank will likely incur higher credit losses
and problem loans over the next year. Overall growth in commercial
and consumer loans should slow as borrowers recoil from the impact
of the COVID-19 pandemic, which has led to a near halt of economic
activity across vast areas of the U.S., including Puerto Rico."

"We believe execution and integration risks from the impending
merger with Banco Santander are manageable, but the recent market
upheaval and asset quality risks could lead to delays in
regulatory
approvals and in executing the integration."

"Nevertheless, we believe FirstBank's strong capital position, its
solid market share on the island, and its good on-balance-sheet
liquidity will enable it to withstand potential credit and economic
stress at the current rating level."

Outlook

S&P said, "Our stable outlook acknowledges the potential
competitive advantages for FirstBank from increased scale in its
business franchise following the Banco Santander acquisition, the
improvement in the combined entity's deposit funding and liquidity,
and its strong capital position. On balance, we expect reduced
profitability and higher credit losses in the near term reflecting
ultra-low interest rates and the expected economic contraction in
the U.S."

"We could revise the outlook to positive, or raise the ratings in
the next 12 months, if the bank accretes capital faster than we
currently anticipate, such that our projected S&P Global Ratings
risk-adjusted capital ratio improves and remains above 15%
following the merger. We could also revise the outlook or raise our
ratings if FirstBank Puerto Rico's competitive position and
franchise improves considerably, as evidenced by better revenue
diversification and stronger market share."

"Conversely, we may revise the outlook to negative (which we view
as less likely) if we see outsize deposit outflows hurt FirstBank's
funding, loan performance weakens materially, or the company is
unable to successfully integrate and realize expected synergies
from the acquisition."

Popular Inc.

S&P said, "The outlook revision on our ratings on Popular Inc.
indicates that we expect the net interest margin will decline and
overall profitability will weaken given recent Fed rate cuts and
lower market interest rates. Furthermore, we anticipate the
economic conditions in Puerto Rico and the U.S. will deteriorate,
which will likely hurt the company's loan performance, particularly
among its commercial and consumer borrowers. In addition, we expect
capital ratios to decline very substantially in the first quarter
given the company's $500 million accelerated share repurchase
agreement, which was announced in January, and slowly rebuild
throughout the rest of this year."

Nonetheless, Popular has made substantial financial improvements in
recent years and strengthened its market position in Puerto Rico,
aided by the Doral Bank transaction and the acquisition of certain
assets and liabilities related to Wells Fargo & Co.'s auto finance
business in Puerto Rico.

S&P said, "Furthermore, we view funding and liquidity as solid
following improvements stemming from deposit growth, reduced
wholesale borrowings, and deposit inflows from government-related
entities. Despite significant economic headwinds, we think Popular
is better positioned than other banks based in Puerto Rico to
weather additional challenges, should they arise."

Outlook

S&P said, "The outlook on Popular is stable, reflecting our view
that the rating is unlikely to change within the next 12 months. We
expect the company's net interest margins to decline in 2020 given
lower market interest rates, and loan performance could weaken due
to a slowdown in economic activity. We expect Popular to maintain
conservative business and financial policies amid difficult
operating conditions.

"We could raise the ratings if the bank maintains or improves its
asset quality, capital ratios, and funding and liquidity metrics.
Conversely, we could lower the ratings, which we view as less
likely, if loan performance deteriorates materially or if capital
ratios decline substantially, potentially because of lower
profitability."

TCF Financial Corp.

S&P said, "We revised our ratings outlook on TCF Financial Corp.
because we think that TCF, like other regional banks, could face
earnings and asset quality pressures in the near term because of
the recent Fed rate cuts and the economic fallout from the COVID-19
pandemic. That said, we believe the company's healthy capital, good
on-balance-sheet liquidity, and greater geographic and product
diversification resulting from the merger, which leave it less
vulnerable to individual sectors, will help to sustain it through
potential industrywide deteriorating economic conditions over the
next year."

Outlook

S&P said, "The stable outlook on TCF reflects our view that in
spite of the economic challenges it could face in the near term,
which could weigh on its earnings and asset quality, the company's
healthy capital and good core deposit funding and on-balance-sheet
liquidity will help to sustain it against growing economic
headwinds. We expect its performance will remain comparable to
similarly rated peers over at least the next two years. Although we
believe that the full integration of the TCF and Chemical
organizations could take longer than we initially anticipated, we
expect that TCF will benefit from the geographic and product
diversification resulting from the merger."

"If, over time, the company is able to take advantage of the
increased scope of its business to deepen its market share and
generate solid, diversified loan growth, while maintaining good
asset quality and adequate core deposit funding, we could raise the
ratings. Additionally, it the company grows capital over time, such
that we expect it to maintain an S&P Global Ratings risk-adjusted
capital ratio above 10% on an ongoing basis, we could raise the
ratings."

"Alternately, if the company's exposure to riskier asset classes
increases substantially, loan performance deteriorates materially,
or funding weakens, we could lower the ratings."

Texas Capital Bancshares Inc.

S&P said, "The outlook revision on our ratings on Texas Capital
Bancshares Inc. (TCBI) reflects the significantly diminished
possibility that we will raise the ratings over the next two years
due to the worsening U.S. and global economies. However, we
continue to believe that the pending merger with Independent Bank
promises greater geographical, lending, and funding diversification
for the combined company. The merger is expected to close by
midyear, though it is unclear whether the approval process could be
extended given current market conditions."

"We believe TCBI, on a stand-alone basis, as well as following the
merger, could face declining asset quality in the near term given
the economic fallout resulting from the COVID-19 pandemic. TCBI has
relatively large exposure to commercial real estate, including
construction, which is 10% of loans. But it has, over the last few
years, lowered its exposure to higher-risk lending, particularly
energy and leveraged lending, which were 5% and 5%, respectively,
of total loans at year-end 2019. TCBI also has a relatively low
exposure to other stressed sectors such as retail and
restaurants."

"We also expect the recent deep Fed rate cuts will lower the bank's
net interest margin and earnings. TCBI has a relatively low revenue
contribution from non-interest income, and instead relies mostly on
interest rate spread income. In response to lower interest rates,
TCBI increased its mortgage finance warehouse lending, which has
seen strong growth and has lower duration and interest rate risk."

"The company has maintained strong credit quality over its
two-decade history, and through several downturns. The company does
not have a share buyback plan or common stock dividend, and we
believe its capital position will remain well above regulatory
minimums for the foreseeable future."

Outlook

S&P said, "Our outlook on TCBI is stable based on our expectation
that the company will be able to navigate increasing headwinds from
low energy prices, falling interest rates, and a worsening economy
at the current rating level. The company also has reduced leveraged
lending and energy in the last few years, while keeping a low
exposure to retail. We think the mortgage finance business
contributes to revenue growth, while lowering the bank's credit and
interest rate risks."

S&P could lower the ratings over the next two years if:

-- Merger integration issues arise, or S&P expects TCBI's credit
quality to deteriorate substantially;

-- Energy or construction loan portfolios increase meaningfully as
a proportion of total loans; or

-- The Texas economy weakens significantly.

S&P said, "We could raise the ratings over the next two years if
the company demonstrates resilience through the currently volatile
market and economic conditions and maintains relatively
conservative business and financial strategies. We would also look
for the merged company to maintain low credit losses and exhibit
financial performance in line with higher-rated peers."

Western Alliance Bank

S&P said, "Our outlook revision on Western Alliance Bank (WAB)
indicates the significantly diminished likelihood that we will
raise the ratings given the emerging economic fallout from the
COVID-19 pandemic. While credit quality metrics have improved over
the past several years, we expect the evolving economic downturn
will eventually lead to some credit deterioration in its loan
portfolio. Additionally, like its U.S. regional bank peers, we
expect WAB will face net interest income pressure, higher loans
loss provisions, and reduced earnings capacity in 2020."

"WAB's hotel franchise book may be particularly susceptible to
deterioration. As of Dec. 31, 2019, this portfolio represented 9.1%
of total loans. We expect travel and tourism to decline
significantly in the short term due to the COVID-19 outbreak. As
such, we expect an increase in NPAs and credit losses in this
portfolio."

"Furthermore, given that a majority of the loan portfolio consists
of commercial exposures, we expect an increase in NPAs and NCOs in
2020 due to slower economic growth. We also expect reduced earnings
capacity in 2020 with lower market interest rates constraining net
interest income, which has been approximately 95% of operating
revenue the past several years."

Outlook

S&P said, "The stable outlook on WAB reflects our expectation that
the bank will maintain adequate capital levels and solid liquidity
and funding metrics despite challenges it could face over the next
two years due to the emerging economic downturn. We expect the
commercial loan portfolio's credit quality metrics to weaken,
particularly the hotel franchise book. In addition, WAB will face
earnings pressure due to ultra-low interest rates and higher
provision expenses."

"We continue to view the bank's large commercial loan portfolio and
exposure to hotels cautiously from a credit perspective. We could
revise the outlook to negative or lower the ratings within the next
two years if the bank's loan credit quality decreases more than
expected, or if the bank's capital ratios decline significantly."

"We could raise the ratings if the bank maintains strong loan
performance and demonstrates resilience through the currently
volatile market and economic conditions, or if we project WAB's S&P
Global Ratings risk-adjusted capital ratio will rise and remain
above 10%."

  Ratings List
  
  Ratings Affirmed; Outlook Action  
                                 To                From
  BancorpSouth Bank
   Issuer Credit Rating     BBB/Stable/A-2     BBB/Positive/A-2

  FirstBank Puerto Rico
   Issuer Credit Rating     BB-/Stable/--      BB-/Positive/--

  Popular Inc.

  Popular North America Inc.
   Issuer Credit Rating     BB-/Stable/B       BB-/Positive/B

  Banco Popular de Puerto Rico
   Issuer Credit Rating     BB+/Stable/--      BB+/Positive/--

  Popular International Bank Inc.
   Issuer Credit Rating     BB-/Stable/--      BB-/Positive/--

  TCF Financial Corp
   Issuer Credit Rating     BBB-/Stable/A-3    BBB-/Positive/A-3

  TCF National Bank
   Issuer Credit Rating     BBB/Stable/A-2     BBB/Positive/A-2

  Texas Capital Bancshares Inc.
   Issuer Credit Rating     BB+/Stable/--      BB+/Positive/--

  Texas Capital Bank N.A.
   Issuer Credit Rating     BBB-/Stable/--     BBB-/Positive/--

  Western Alliance Bank
   Issuer Credit Rating     BBB-/Stable/--     BBB-/Positive/--

PUERTO RICO: Board to ask for Delay in Debt Restructuring Hearing
-----------------------------------------------------------------
Kanishka Singh at Reuters reports that Puerto Rico's federally
created financial oversight board will ask a court to delay the
U.S. commonwealth's debt restructuring hearing due to the
coronavirus outbreak, it said.

"The Oversight Board will present a motion in court to adjourn
consideration of the proposed Plan of Adjustment's disclosure
hearing until further notice", the Financial Oversight and
Management Board for Puerto Rico said, according to Reuters.

Puerto Rico commenced a form of municipal bankruptcy in May 2017 to
restructure about $120 billion of debt and liabilities, the report
relays.

The oversight board said last month it was aiming for Puerto Rico
to exit bankruptcy by the end of the year after it had reached a
deal with an expanded group of bondholders to cut the
commonwealth's debt by $24 billion, the report notes.

The board asked Judge Laura Taylor Swain to approve a schedule that
would culminate with a confirmation hearing on a so-called plan of
adjustment for Puerto Rico's core government debt and pension
obligations starting in October, the report discloses.

The government of Puerto Rico had objected to moving forward with
the new debt plan, the report adds.


                        About Puerto Rico

Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70 billion,
a 68% debt-to-GDP ratio and negative economic growth in nine of the
last 10 years.

The Commonwealth of Puerto Rico has sought bankruptcy protection to
restructure its massive $74 billion debt-load and $49 billion in
pension obligations.

The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III of
2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').

The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017.  On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").

U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases.  The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that may
be referred to her by Judge Swain, including discovery disputes,
and management of other pretrial proceedings.

Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.

The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.

Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.

McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets Inc.
is the Board's municipal investment banker.

Prime Clerk LLC is the claims and noticing agent.  Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico

Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.

O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.

The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.

                    Bondholders' Attorneys

Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet, Rivera
& Sifre, P.S.C. and serve as counsel to the Mutual Fund Group,
comprised of mutual funds managed by Oppenheimer Funds, Inc., and
the First Puerto Rico Family of Funds, which collectively hold over
$4.4 billion of GO Bonds, COFINA Bonds, and other bonds issued by
Puerto Rico and other instrumentalities.

White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.

Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP, Autonomy
Capital (Jersey) LP, FCO Advisors LP, and Monarch Alternative
Capital LP.

Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.

Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ Management
II LP (the QTCB Noteholder Group).

                          Committees

The U.S. Trustee formed an official committee of retirees and an
official committee of unsecured creditors of the Commonwealth.  The
Retiree Committee tapped Jenner & Block LLP and Bennazar, Garcia &
Milian, C.S.P., as its attorneys.  The Creditors Committee tapped
Paul Hastings LLP and O'Neill & Gilmore LLC as counsel.


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

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

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

This material is copyrighted and any commercial use, resale or
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of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000.
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