---

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

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

          Friday, April 3, 2020, Vol. 21, No. 68

                           Headlines



B R A Z I L

BIOSEV SA: Fitch Downgrades LT IDR to B; Alters Outlook to Neg.
BRF S.A.: S&P Alters Outlook to Stable & Affirms 'BB-' ICR
ENERGISA SA: Fitch Affirms BB LT IDR, Outlook Stable


C O L O M B I A

COLOMBIA TELECOMUNICACIONES: S&P Affirms BB+ Rating, Outlook Neg.


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Agro Can Meet Consumption, Top Farmer Says
DOMINICAN REPUBLIC: Banks Reduce Service Schedule
DOMINICAN REPUBLIC: Estimates Losses In Tourism Will Be Compensated


E C U A D O R

BANCO PICHINCHA: Fitch Downgrades LT Issuer Default Rating to CC


H A I T I

HAITI: IMF Releases Statement re Request for Rapid Credit Facility


M E X I C O

GRUPO FAMSA: Fitch Downgrades LT Issuer Default Rating to CC
GRUPO IDESA: Fitch Downgrades LT Issuer Default Rating to C


P U E R T O   R I C O

METRO PUERTO RICO: Case Summary & 20 Largest Unsecured Creditors
PETROLEOS DE VENEZUELA: US Charge Contractor With Money Laundering
SEARS HOLDINGS: Dist. Court Disallows Assignment of MOAC Lease
SPANISH BROADCASTING: Swings to $928,000 Net Loss in 2019

                           - - - - -


===========
B R A Z I L
===========

BIOSEV SA: Fitch Downgrades LT IDR to B; Alters Outlook to Neg.
---------------------------------------------------------------
Fitch Ratings has downgraded Biosev S.A.'s Long-Term Foreign and
Local Currency Issuer Default Ratings to 'B' from 'B+' and
Long-Term National Scale Rating to 'BBB(bra)' from 'A-(bra)'. The
Rating Outlook has been revised to Negative from Stable.

The downgrade reflects Biosev's escalating refinancing needs amid a
scenario where free cash flow generation is expected to remain
negative, pressured by depressed sugar and ethanol prices due to
the impact of coronavirus pandemic on commodity prices, and heavy
investments program to improve the company's agricultural yields
and crushed volumes. Fitch projects declining operating margins and
cash flows for Biosev in fiscal years 2021 and 2022, although this
reduction will be partially offset by the combination of efficient
hedging strategies, a flexible product mix and presence of
third-party sugar cane in the mix with 40% of total raw material
origination. The company remains challenged to improve operating
efficiency and fill its mills to their 32 million capacity.

The rating action also incorporates the expectation that net
leverage will remain around 3.5x during the next three years, and
above previous expectation. Fitch did not incorporate in the base
case scenario any major short-term disruption to Biosev's
operations caused by coronavirus and it expects that harvesting and
selling activities to remain unaffected.

The ratings continue to incorporate Biosev's affiliation with Louis
Dreyfus Company (LD). While additional support though material
capital injection from LD is not considered, the rating
incorporates important operational synergies and financial support,
mainly through access to long-term credit lines. Biosev's IDRs
remain pressured by high business risk inherent to the S&E
industry, which is very volatile and exposed to weather
conditions.

The Negative Outlook incorporates important challenges Biosev will
face to refinance high debt maturities up to 2022. Although
liquidity should remain satisfactory in the short term due to
manageable bank debt maturities up to March 2021, the company has
significant debt maturities of approximately BRL2.5 billion due in
2021 and BRL2.5 billion in 2022. This amount could further increase
depending on the FX rate. In Fitch's opinion, current business
environment with weak sugar and ethanol prices adds risk to the
company's capacity to access long-term credit lines.

KEY RATING DRIVERS

Deteriorating Operating Environment: Fitch expects limited impact
for Brazilian sugar and ethanol (S&E) producers' cash flows during
fiscal 2021, despite the sharp reduction in oil prices and the
direct impact on ethanol prices, as efficient hedging strategies
for sugar will attenuate part of the reduction in ethanol business'
cash flow. Cash flow of companies with higher presence of ethanol
in the mix will be more pressured during this year and the speed of
recovery will depend on how fast oil prices increase again.
Petrobras sets prices for gasoline, a substitute for hydrous
ethanol, according to the prevailing import price of oil.

Sugar prices have also been largely impacted and implications could
be magnified in the 2021/2022 crop season if producers divert a
larger share of sugar cane harvest to sugar instead of ethanol,
creating excess sugar supply. As the world's largest sugar
exporter, Brazil has the ability to increase global sugar supply
quite quickly, which could depress international prices. Fitch
forecasts average sugar prices of USD12.5c/pound in 2020 and 2021,
including polarization premium for Brazilian sugar, and average
Brent crude prices of USD45 c/ barrel.

Negative FCF: Fitch projects Biosev to report EBITDA of BRL1.8
billion in FY21 and BRL1.7 billion in FY22, and average negative
FCF of BRL200 million in the period, absence of material
improvement in crushed volumes and amid a depressed commodity price
scenario. This compares with EBITDA of BRL1.8 billion expected for
fiscal 2020. Biosev's efficient hedging strategy for sugar and its
capacity to divert 60% of all sucrose into sugar will partly
attenuate the reduction in ethanol business' cash flow in fiscal
2021 and 2022. For the crop season starting in March 2020, Biosev
has already hedged its sugar production at an average level of
BRL1,350/ton. Fitch also expects Biosev's cost structure to benefit
from the presence of 40% third party cane in the origination mix.
Base case projections considers average investments of BRL1.2
billion, necessary to increase agricultural yields and capacity
utilization of its mills.

Sluggish Improvement in Performance Indicators: Biosev still faces
challenges to improve yields and to advance in key operating
indicators. Fitch acknowledges the company efforts to reduce cash
costs and improve efficiency, which included the sale of its two
units in Brazil's Northeast, though not sufficient to fully offset
the impact of low sugar and ethanol prices expected for fiscal 2021
and 2022. As per the Fitch's calculations, the company's cash cost
(including crop care spending and investments to renew the cane
fields) reached BRL1,010/ton in the last twelve months through Dec.
31, 2019, comparing slightly favourably with BRL1,021/ton in fiscal
2019. Fitch forecasts the company to report crushed volumes of 27
million tons and 27.2 million tons in fiscal years 2020 and 2021,
respectively, out of total crushing capacity of 32 million tons, to
yield a below-average utilization rate of 85%. The company reported
a 8% drop yoy in total recoverable sugar to 3.5 million tons in the
3Q20 LTM, comparing unfavourably with 3.8 million tons in fiscal
2019.

Positive Affiliation with Louis Dreyfus Company: Fitch believes the
affiliation of Biosev with LD Group is credit positive as it
enhances its business model and financial flexibility, with better
access to long-term credit lines. However, Fitch does not
incorporate additional support though material capital injection
from LD in the base case scenario. LD Group owns 94% of Biosev and
supported the company both operationally and financially, as
demonstrated by the BRL3.5 billion capital injection and extension
of tenors under a BRL3.6 billion worth of debt concluded in 2018.
This affiliation also translates into positive synergies and gives
Biosev access to a broad range of data and information besides the
adoption of efficient risk management practices that has been
reflecting positively on the attractive level of hedged sugar
prices and helped to reduce the impact of FX volatility.

Net Leverage to Remain Around 3.5x: Fitch expects the current
scenario of depressed commodity prices and strong BRL depreciation
to interrupt the downward trend in leverage expected for Biosev.
Fitch projects net adjusted debt to EBITDAR ratio of 3.7x in fiscal
2020, pressured by the strong depreciation of Brazilian real in
early 2020, and compares unfavourably with 3.4x in fiscal 2019. For
fiscal 2021 onwards, average net adjusted leverage should remain
around 3.5x. As of 3Q20, 88% of Biosev's total debt was denominated
in USD.

High Industry Risks: The Brazilian S&E industry is characterized by
intense price volatility and below average access to liquidity.
International sugar prices are highly volatile and can fall below
the marginal cash cost of Brazil's lowest cost producers. Price
volatility and the industry's capital intensive nature can lead to
negative FCF and erode liquidity positions across the board. Price
volatility is also present in the Brazilian ethanol market
following Petrobras's fuel policy of setting domestic gasoline
prices on a daily basis. S&E companies' performance is also
affected by weather conditions and their impact on yields and cost
dilution. Other risks include FX exposure as part of Biosev's
revenues and debt are USD-denominated.

ESG Influence: Biosev has an ESG Relevance Score of '4' for GEX -
Management Strategy, due to below-average execution on operational
strategy. This factor has a negative impact on the credit profile,
and is relevant to the rating in conjunction with other factors.

DERIVATION SUMMARY

The downgrade of Biosev's ratings incorporate escalating
refinancing needs amid a scenario where free cash flow generation
is expected to remain negative and large debt repayments of BRL5.0
billion are expected for calendar 2021 and 2022. Biosev is the
third largest sugar and ethanol (S&E) producer in Brazil, with a
diversified product portfolio. However, the ratings reflect the
company's challenge to rapidly advance in key operating indicators
and improve FCF generation amid a deteriorating price scenario for
both sugar and ethanol in fiscal 2021. While Fitch does not expect
additional capital injections from LD, the affiliation with LD is
perceived as highly accretive for the ratings. While access to
liquidity in the industry is typically scarce, Biosev's affiliation
improves the company's financial flexibility and ability to access
funding from either the parent or local banking market, as observed
in 2018.

Biosev's IDR is positioned two notches below Tereos SCA (Tereos;
IDR BB-/ Neg) due to Tereos's strong business model underpinned by
high degree of geographic and product diversification and capacity
to use raw materials from many different sources and countries.
Biosev's ratings are the same as Corporacion Azucarera del Peru
S.A. (Coazucar, IDR B/Stable) as both companies report weak and
volatile operating performance whereas their liquidity remains
supported by their shareholders mostly. Biosev is rated two notches
below as Usina Santo Angelo Ltda. (USA, A-(bra)/Stable), as
Biosev's higher scale and product mix flexibility is tempered by
USA's performance excellence on a low cash cost base that enables
the company to generate neutral to positive FCF amid relatively
depressed. Jalles Machado (A+(bra)/Stable) benefits from its robust
business model, with low cash cost structure and differentiated
product portfolio, which enables the company to generate resilient
CFFO and preserve strong liquidity and net adjusted leverage below
2.0x.

KEY ASSUMPTIONS

  -- Crushed volumes of 27 million tons of sugar cane in fiscal
2020. Fitch assumes annual increases of 1% as from fiscal 2021.

  -- The company will maximize sugar production at 60% of the
product mix over the next three years.

  -- Sugar prices for fiscal 2020 are based on currently hedged
positions. From fiscal 2021 on, Fitch forecasts 100% of sugar
volumes hedged at a combination of USD13.50 cents/pound and average
FX rate at BRL4.20/USD. For fiscal 2022 onwards, Fitch assumes
average sugar prices of USD12.50cents/pound including polarization
premium for Brazilian Sugar.

  -- Ethanol prices have been forecast to vary in tandem with a
combination of Brent crude prices and the Brazilian FX rate. Fitch
forecasts average Brent crude prices of USD41/bbl and USD48/bbl in
2020 and 2021, respectively, trending towards afterwards to
USD53/bbl by 2022.

  -- 62% own cane in the sugar cane origination mix.

  -- Average investments of BRL1.2 billion per year

RATING SENSITIVITIES

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

  -- The Negative Outlook could be revised to Stable should there
be higher evidence of support from the LD Group and/or the company
succeeds in addressing its high refinancing risks.

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

  -- Any demonstration of diminishing support from LD Group would
be viewed negatively by Fitch;

  -- Signs of higher refinancing risks and difficulties refinancing
the large debt maturities due 2021.

LIQUIDITY AND DEBT STRUCTURE

Escalating Refinancing Risk: Although liquidity should remain
satisfactory in the short term due to manageable bank debt
maturities up to March 2021, Biosev has significant debt maturities
of approximately BRL2.5 billion due in 2021 and BRL2.5 billion in
2022. Fitch expects the company to generate average negative FCF of
BRL200 million in those years and does not incorporate in its
ratings any capital injection from the controlling group. However,
the affiliation with LD enhances the company's financial
flexibility, with better access to long-term credit lines.

Fitch projects Biosev to close fiscal 2020 with cash position of
BRL1,1 billion and short-term debt of BRL500 million. As of Dec. 31
2019, when inventories for S&E players are typically high, Biosev
reported cash and short-term debt positions of BRL270 million and
BRL424 million, respectively.

SUMMARY OF FINANCIAL ADJUSTMENTS

Biosev's adjusted debt figures include lease-based debt adjustment
equivalent to a multiple of 5x the company's annual land lease
expenses.

Net derivative balances have been added to Biosev's adjusted debt
figures.

The following items have been excluded from EBITDA calculations:

  -- Changes to the fair value of the company's biological assets;

  -- Non-recurring items;

  -- HACC effects.

ESG CONSIDERATIONS

Biosev S.A.: 4.2; Management Strategy: 4

Biosev has an ESG Relevance Score of '4' for GEX - Management
Strategy, due to below-average execution on operational strategy.
This factor has a negative impact on the credit profile, and is
relevant to the rating in conjunction with other factors.

BRF S.A.: S&P Alters Outlook to Stable & Affirms 'BB-' ICR
----------------------------------------------------------
On March 30, 2020, S&P Global Ratings revised its outlook on BRF
S.A. to stable from positive. At the same time, S&P affirmed its
'BB-' global scale and 'brAA+' national scale credit issuer and
issue-level ratings on BRF.

S&P said, "We have revised the outlook on BRF amid global
uncertainties in several of its markets, including Brazil, as a
result of the spread of the new coronavirus. Significantly lower
demand from food service in all markets, likely lower capacity in
the logistics network, potential for export restrictions, and
foreign-exchange swings are likely to cause volatility in the
company and sector metrics, and increase the company's working
capital requirements. Also, increasing grain prices in Brazil could
pressure BRF's margins in the second half of 2020, depending on its
ability to adjust prices and amount of hedged exposure.

"On the other hand, we believe China's protein demand is gradually
normalizing, and the fundamentals for protein prices and demand are
supportive amid the long-term impact of the African Swine Fever
(ASF) on China's pork production. In addition, we have observed
increasing demand from food retailers and higher export revenue due
to the Brazilian real's depreciation.

"BRF holds a sound liquidity position after several divestments and
its liability management during 2019, which in our view, enables it
to withstand current market volatility. It ended 2019 with cash
position of about R$4.6 billion and an undrawn revolving credit
facility of about R$1.5 billion available for the next three years,
compared with a short-term debt of R$3.1 billion. The company has
also refinanced some of its debt in the first quarter of this year
to strengthen its cash position and balance sheet to cope with the
adverse scenario."


ENERGISA SA: Fitch Affirms BB LT IDR, Outlook Stable
----------------------------------------------------
Fitch Ratings affirmed Energisa S.A.'s Long-Term Foreign and Local
Currency Issuer Default Ratings at 'BB' and 'BB+', respectively,
and National Scale Rating at 'AAA(bra)'. In addition, Fitch
affirmed the ratings of nine Energisa subsidiaries. The Rating
Outlook for the corporate ratings is Stable.

Energisa's ratings are based on the low to moderate business risk
of the Brazilian power distribution segment, which is partially
mitigated by the group's diversification through 11 concessions,
making it one of the largest participants in the market. The rating
action also reflects Fitch's expectation that Energisa group will
be able to preserve sound operating cash flow even after the
economic impacts of coronavirus in Brazil in terms of electric
energy demand and delinquency. Fitch believes Energisa's high
consolidated leverage ratios for its IDRs will migrate to more
appropriate levels from 2021 on. The group's credit profile
benefits from sound liquidity based on solid cash balances and
proven financial flexibility.

Energisa's ratings consider the group's consolidated performance
and Fitch's expectation that a positive track record of operational
efficiency and positive trach record on recovery of deteriorated
power distribution companies will allow material improvements at
the more recent Energisa Rondonia (ERO, formerly Ceron) and
Energisa Acre (EAC, formerly Eletroacre) acquisitions. The IDRs
incorporate moderate regulatory risk for the Brazilian power
sector, and the currently higher hydrological risk is not
negatively affecting the IDRs.

The Long-Term Foreign Currency IDR is constrained by Brazil's
Country Ceiling of 'BB', as the company generates all of its
revenues in Brazilian reals, with no cash and committed credit
facilities abroad. The Stable Outlook for the Long-Term Foreign
Currency IDR follows the Stable Outlook for Brazil's 'BB-'
sovereign rating. Fitch also expects Energisa will be able to move
its consolidated leverage to more conservative levels over the next
few years, which supports the Stable Outlook for the Local Currency
IDRs and the National Scale Ratings.

KEY RATING DRIVERS
Large Portfolio Enhance Business Profile: Fitch considers Brazilian
electricity sector risk lower than the average risk of other
sectors in the country. Risks vary among segments, and credit
profiles of distribution companies are linked to volatility in
demand, the ability to control manageable costs and secure positive
results in periodic tariff reviews. Energisa most relevant
concession's next tariff review will occur in 2023, which bodes
well for EBITDA predictability in the short to medium term.
Energisa's presence in four regions in Brazil through eleven
concessionaries benefits the group in mitigating the segment
volatility. Fitch views distribution segment risk as higher than
the transmission segment's and therefore considers Energisa's
investment in the construction of four transmission lines as
positive for the group's business risk, even though it will not be
significant on a consolidated basis.

Resilient Concession Area Mitigates Coronavirus Impacts: Fitch
believes that energy consumption in the company's main concession
areas benefits from economic dynamic stronger than national
average, mainly due to the agribusiness sector. The agency
forecasts average annual energy consumption growth in the group's
concession area of 2.3% from 2020 to 2023, with 1.4% in 2020,
impacted by the coronavirus in Brazil. In 2019 Energisa's
concessions accumulated average volume growth of 4.2%, well above
the national average of 1.4%. Fitch expects the economic impact of
the coronavirus will reduces the rhythm of the positive trend in
the company concession's demand over the next months, but still
expects a positive performance throughout the year, which should
reduce the negative effect of the delinquency increase.

Positive Operating Performance: Energisa's IDR benefits from the
efficient operating performance of its distribution companies. On a
consolidated basis, its EBITDA exceeds the sum of individual
regulatory EBITDAs, defined for each of the nine distribution
companies (not including ERO and EAC) during the last tariff
review. In 2019, the pro forma EBITDA of the nine distributors was
BRL3.0 billion, compared with a regulatory EBITDA of BRL2.0
billion. In addition, forecasted investments should improve
operating efficiencies and benefit the performance of some
companies in terms of energy losses and quality indicators. Fitch
believes Energisa should succeed in turning around Ceron and
Eletroacre, based on its positive results when it acquired
distressed companies in the past.

Negative FCF in 2020-21: Energisa's consolidated FCF should be
negatively impacted by the still weak performance at ERO and EAC,
mainly in 2020, and by higher capex at transmission lines, mainly
concentrated in 2021. EBITDA of BRL3.7 billion in 2020 should
increase to BRL4.3 billion in 2021, considering the recovery at ERO
and EAC to stronger EBITDAs after the expected tariff review in
2020. FCF should be negative in around BRL700 million in 2020 and
BRL470 million, gradually turning to neutral in 2022 and 2023. The
agency expects average annual capex and dividend distributions of
BRL2.2 billion and BRL609 million per year, respectively, from 2020
to 2023.

Leverage Decrease Trends: Fitch estimates that Energisa's
consolidated total debt/EBITDA and net debt/EBITDA will decline to
more conservative levels below 4.0x and 3.5x, respectively, from
2021 on. In 2019, the first full year with the acquired
deteriorated concessions included in consolidated results, Energisa
reported pressured financial metrics, with gross and net leverage
of 5.4x and 4.5x, respectively. Fitch expects efficiency gains and
benefits from the extraordinary tariff review of ERO and EAC will
improve consolidated performance from 2020 on. Fitch expects gross
and net leverage of 4.8x and 4.2x, respectively, in 2020.

Strategic Sector for Brazil: In Fitch's analysis, the credit
profile of participants in the Brazilian electricity sector
benefits from their strategic importance to sustain the country's
economic growth and foster new investments. The federal government
has been active in addressing systemic problems that have affected
companies' cash flow and has discussions to improve the regulatory
framework to reduce the sector's risk. The same approach should
occur in case of any stress caused by coronavirus.

DERIVATION SUMMARY

Energisa's financial profile is more aggressive than many of its
peers in Latin America, such as Enel Americas S.A. (BBB+/Stable),
Empresas Publicas de Medellin E.S:P. (EPM, BBB/Rating Watch
Negative), and Grupo Energia Bogota S.A. E.S.P. (GEB, BBB/Stable).
Energisa's IDRs also take into consideration its worst operating
environment operations, with its peers more exposed to
investment-grade countries, mainly Chile (Local Currency IDR
A+/Negative) and Colombia (Local Currency IDR BBB/Negative).

Compared with other Brazilian power companies with operations
predominantly in the distribution segment, Energisa operates in a
concession area with economic growth above national rates,
positively affected by agribusiness. Energisa's business profile is
better than Light S.A.'s (BB-/Stable), which has an aggressive
financial profile, lower financial flexibility and inferior
operational indicators. It operates in a mature market with service
quality indicators below regulatory requirements.

KEY ASSUMPTIONS

  -- ERO and EAC extraordinary tariff review in 2020;

  -- Average growth in energy consumption in Energisa's concession
areas of 1.4% in 2020 and 2.5% from 2021 to 2023;

  -- Dividend distributions equivalent to 50% of net income;

  -- Average annual investments of BRL2.2 billion from 2020 to
2023;

  -- Transmission lines concluded according to the company's
schedule;

  -- No asset sales nor new acquisitions.

RATING SENSITIVITIES

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

  -- An upgrade is unlikely in the near term because the Foreign
Currency IDR is constrained by the country ceiling (BB). An upgrade
on the Local Currency IDR will depend on the group's to bring its
net leverage to around 2.5x.

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

  -- Frustration on the group's deleverage trend, with total
debt/EBITDA and net debt/EBITDA not declining to around 4.5x and
3.5x from 2021 on;

  -- Deterioration in the liquidity profile at the holding or the
consolidated level;

  -- New projects or acquisitions involving significant amounts of
debt;

  -- A downgrade of the sovereign rating would trigger a downgrade
on the FC IDR.

LIQUIDITY AND DEBT STRUCTURE

High Financial Flexibility: Energisa has strong liquidity and high
financial flexibility to finance its investments and refinance
short-term debt, although Fitch anticipates some financial cost
increase due to the current scenario of coronavirus. At YE 2019,
cash and marketable securities of BRL2.7 billion covered short-term
debt of BRL2.8 billion by 1.0x. Liquidity position has already been
reinforced during 2020 by BRL1.2 billion raised through new debt
issuances and by BRL839 million in debt rollover and Fitch sees
Energisa well positioned to refinance the remaining BRL4.2 billion
debt maturing in 2021. Energisa needs to improve the liquidity
position at the holding level, where cash and cash equivalents of
BRL778 million, compared with short-term debt of BRL1.5 billion,
represented short-term debt coverage of 0.5x. The liquidity
position at the holding level also count with dividend received
from its operational subsidiaries, with reached BRL991 million in
2019 and should remain at similar level over the next years. As of
YE 2019, total consolidated debt was BRL17.3 billion, mainly
composed of debentures (BRL8.9 billion), Law 4.131 credit lines
(BRL3.7 billion) and loans from Eletrobras (BRL837 million).

ESG CONSIDERATIONS

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



===============
C O L O M B I A
===============

COLOMBIA TELECOMUNICACIONES: S&P Affirms BB+ Rating, Outlook Neg.
-----------------------------------------------------------------
On March 30, 2020, S&P Global Ratings revised its outlook to
negative from stable on Colombia Telecomunicaciones S.A. E.S.P.'s
(Coltel). In addition, S&P affirmed the ratings at 'BB+'. At the
same time, S&P withdrew its hybrid securities rating of 'BB-' after
the company called the bond on March 30, 2020.

Coltel's debt refinancing will increase its debt and raise exposure
to foreign exchange rates. As of March 30, 2020, the company
completed the refinancing of its $500 million "intermediate equity"
content hybrid bond through five-year bullet tenor loans with a
local bank and is expected to take additional short-term bank loans
of Colombian peso (COP) 70 billion for working capital
requirements. As a result, S&P expects these transactions to raise
the company's debt, which would weaken Coltel's credit metrics,
with debt to EBITDA above 3.0x. These metrics deviate substantially
from our previous expectations.

The company exchanged its hybrid securities for local bank loans
for an equivalent of COP1.7 trillion (compared with around COP1.27
trillion as of Dec. 31, 2019), which will represent around COP400
billion in additional debt due to the Colombian peso's falling
value. This accounting reclassification considers a hedged exchange
rate of approximately COP3,400 per U.S. dollar. Even though the
purpose of this transaction is to reduce hybrid instrument's higher
debt costs, as the company was benefiting from lower S&P Global
Ratings-adjusted leverage metrics, given that 50% of total hybrid
securities were accounted as equity. At this point, S&P's adding an
additional COP850 billion to its adjusted debt calculations.

Finally, S&P expects the company to take additional short-term
loans totaling about COP70 billion for operational growth plans.

The economic downturn, due to the COVID-19 crisis, would delay
Coltel's growth prospects. The economic hit would depress the
company's business to business (B2B) segment, mainly because most
of its corporate clients have shut down their in-office operations.
S&P believes Coltel would mitigate revenue losses in this segment
by ramping its massive segment services such as broadband, paid-TV,
and mobile connectivity. However, given uncertainty over the
magnitude and duration of these conditions, the company's growth
plans for 2020, and to some extent, for 2021 could be delayed. This
would translate into lower-than-expected EBITDA and higher working
capital requirements from lower receivables for the next two years,
further weighing on Coltel's leverage metrics.

Telefonica's spinoff of Latin American subsidiaries (excluding
those in Brazil) could point to lower commitment of extraordinary
support for Coltel. S&P said, "We believe that in the event that
Coltel's long-term relevance to its parent diminishes, this could
lead to possible divestures in the region. In addition, we could
perceive lower likelihood of extraordinary support, if Telefonica
transfers its HISPAM subsidiaries to a special purpose vehicle, in
which it won't own the majority stake. We will continue monitoring
upcoming announcements regarding the future strategic plans of
Telefonica's operating spin-offs and how they will reflect on our
assessment of Coltel as a moderately strategic subsidiary."

S&P said, "The negative outlook reflects our view of a possible
two-notch downgrade in the next 12 months if the company falls
below our leverage metric expectations with debt to EBITDA above
3.0x amid the refinancing of its hybrid securities, while we
believe Coltel is no longer a moderately strategic subsidiary.

"We could lower the ratings in the next 12 months or so if Coltel's
credit metrics erode due to adverse economic and business
conditions, such as intense competition, foreign exchange
volatility, and the impact of COVID-19. In such a scenario, debt to
EBITDA would rise above 3.0x as the company refinances its
"intermediate equity" content hybrid securities through multiple
bank loans. We could also lower the ratings if we perceive less
commitment from Telefonica to provide extraordinary support or if
we believe that it will likely sell Coltel in the short term.

"We could revise the outlook to stable in the next 12-18 months if
the company generates higher EBITDA to mitigate its exposure to
higher debt obligations, resulting in debt to EBITDA below 3.0x,
funds from operations (FFO) to debt of 20%-30%, and free operating
cash flow (FOCF) to debt close to 5%. This could occur if Coltel
maintains low churn rates through its "RECONECTA" strategy and
maintains its market share in mobile and fixed services."




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

DOMINICAN REPUBLIC: Agro Can Meet Consumption, Top Farmer Says
--------------------------------------------------------------
Dominican Today reports that the supply of Dominican agro products
is guaranteed, as is the sale price to consumers, according to
National Confederation of Agricultural Producers (Confenagro)
president Eric Rivero.

"The country has the capacity to supply domestic demand and we must
reinforce that now that we have the opportunity that part of what
went (products) for hotels can be used to supply the population at
this time, to change imports for national production," the report
quoted Mr. Rivero as saying.

In the country, 14 million sacks of rice are produced and an
estimated consumption of 14.2 million, according to the latest
Agriculture Ministry figures at yearend 2019, according to
Dominican Today.

Likewise, poultry farmers produced 7.9 million tons of chicken,
with 8 million consumed in the country, the report relates.

                   About Dominican Republic

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

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

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

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

DOMINICAN REPUBLIC: Banks Reduce Service Schedule
-------------------------------------------------
Dominican Today reports that the Dominican Republic Commercial
Banks Association (ABA) said that starting March 30, commercial
banks will open only four hours from Monday to Friday at their
branches throughout the country.

The measure "reinforces the prevention and security measures for
its collaborators and customers against the coronavirus," according
to Dominican Today.

The hours for face-to-face services from March 23, is from 8:30
a.m. to 12:30 p.m., the report adds.

                      About Dominican Republic

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

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

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

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

DOMINICAN REPUBLIC: Estimates Losses In Tourism Will Be Compensated
-------------------------------------------------------------------
Dominican Today reports that the Governor of the Central Bank said
that the losses that the Covid-19 pandemic will cause to the
tourism sector, estimated at between 400 to 500 million dollars,
taking into account the greater flow of remittances, of foreign
direct investment (FDI) and the significant decrease in oil prices,
will partially offset its impact in terms of Balance of Payments.

Lawyer Hector Valdez Albizu assured that "monetary policy has
enough space to continue reacting in a timely manner, according to
Dominican Today.

"That is, if more resources have to be provided than announced, we
will do it," he said, the report notes.

He recalled that, among other actions, the Monetary Board and the
Central Bank authorized liquidity provision measures for some 52
billion pesos and the reduction of the monetary policy rate by 100
basis points, the report relates.

The report says that Valdez Albizu guaranteed the adequate flow of
foreign exchange in the exchange market through the provision of
foreign exchange for more than 500 million dollars.

The Commission to deal with Economic and Employment Affairs and the
National Competitiveness Council held a meeting to evaluate the
recent economic provisions established by the government and the
Central Bank, the report notes.

The meeting was chaired by the Minister of Finance, Donald
Guerrero, Governor Valdez Albizu, and the Minister of Economy, Juan
Ariel Jimenez, the report discloses.

Also participating were the ministers of Industry, Commerce and
MSMEs, Nelson Toca, and of Labor, Winston Santos; as well as the
directors of Internal Taxes Magin Diaz, and of Customs, Enrique
Paniagua, the report relates.

For the private sector, the meeting was led by Pedro Brache,
president of the National Council of Private Enterprise (CONEP) and
Celso Juan Marranzini, president of the Association of Industries
(AIRD), with the attendance, among others, of Luis Molina Achecar,
president of the Dominican Federation of Financial Institutions and
representative of the Association of Commercial Banks ABA, the
report discloses.

The report notes that Guerrero explained that the measures taken by
the Government have prioritized the health and nutrition of the
population, and called on all sectors to act responsibly in order
to preserve lives and maintain the country's social and economic
stability.

On his side, Brache praised the recent measures taken by the
authorities given the complex economic situation that Dominicans
have to face due to the effects of the coronavirus, and showed the
will of that entity to contribute with its efforts to alleviate the
negative consequences that can carry, the report says.

In this same sense, the president of the AIRD, Marranzini, exhorted
the businessmen to collaborate with the national authorities to
successfully manage the impact of COVID-19, at the same time that
he asked to strengthen communication between the different sectors
involved to avoid damage undesirable, the report relates.

During the meeting, the businessmen expressed their interest in
specifying as far as possible some aspects included in the
provisions issued by the institutions, in order to be able to adapt
and comply with them effectively in each of their areas, the report
adds.

                             Contribution

The meeting discussed the contribution that the financial sector
can make through credit restructuring and interest rate
adjustments; the facilities that the General Directorate of
Internal Taxes will grant for the payment of taxes; the importance
of maintaining the supply of food, medicines and basic products to
the population; and the need to postpone the term of the bailiff's
acts, the report relates.


                       About Dominican Republic

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

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

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

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



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

BANCO PICHINCHA: Fitch Downgrades LT Issuer Default Rating to CC
----------------------------------------------------------------
Fitch Ratings has downgraded the Long-Term Issuer Default Ratings
to 'CC' from 'B-' for the following banks:

  -- Banco Pichincha C.A. y Subsidiarias (Pichincha);

  -- Banco Guayaquil, S.A.(Guayaquil);

  -- Banco de la Produccion S.A. y Subsidiarias (Produbanco).

These rating actions follow the recent downgrades of Ecuador's
Long-Term IDR to 'CCC' from 'B-' on March 19, 2020 and to 'CC' from
'CCC' on March 25, 2020. In Fitch's view, the credit profiles of
these banks are relatively sound in the context of their domestic
market and compared with the Ecuadorian sovereign rating, as their
ratios remain commensurate with the 'B' category guidelines. Fitch
also believes that these banks will probably retain their capacity
to service their obligations even if the sovereign defaults, given
their relatively moderate direct sovereign exposure and their good
track-record in dealing with sovereign debt stress in the past, by
maintaining reasonable funding and liquidity policies.

In Fitch's view, Ecuadorian banks' ratings are constrained to
Ecuador's sovereign rating at 'CC', regardless of their intrinsic
credit profiles being consistent with relatively higher rating
levels. According to Fitch's criteria, to rate banks above the
sovereign, Fitch must believe that the sovereign, following its own
default in a currency, would probably not impose restrictions on
the bank's ability to service its obligations in that currency.
Fitch considers this condition is unlikely to hold under the
currently stressed environment and risks for further deterioration,
given the government's track-record of intervention and tight
liquidity position.

KEY RATING DRIVERS

IDRs AND VRs

The banks' Viability Ratings (VR), or standalone creditworthiness,
drive the IDRs of Pichincha, Guayaquil and, Produbanco. Ecuador's
sovereign rating and broader operating environment considerations
highly influence these banks' VRs, given the impact of the
government's tight fiscal position and the weak economy on the
banking system's financial performance. The heightened sovereign
financing risks and worsening economic conditions also consider the
impact of the coronavirus pandemic, which will negatively affect
the banks' financial performance, and result in tighter liquidity
due to dollarization, higher funding costs, lower profitability,
and rising non-performing loans due to lower payment capacity of
some debtors.

Although these banks have strong local competitive positions,
diversified business models and stronger financial profiles than
typical banks rated in the 'CC' category, these factors currently
have a reduced their influence in the final rating, given the
heightened importance of the worsening and uncertain operating
environment.

SUPPORT RATING AND SUPPORT RATING FLOOR

Fitch affirmed Pichincha and Guayaquil's Support Rating (SR) at '5'
and Support Rating Floor (SRF) at 'NF', reflecting that despite the
banks' important market shares and local franchises, Fitch believes
that sovereign external support cannot be relied upon due to
Ecuador's limited funding flexibility as well as the lack of a
lender of last resort.

Produbanco's SR of '5' reflects Fitch's view of possible external
support from its majority shareholder Promerica Financial
Corporation (PFC; 62.2% ownership); nevertheless, this cannot be
relied upon, due to the relatively large size of the subsidiary and
reliance to upstream dividends from the Ecuadoran subsidiary.

ESG

Pichincha, Produbanco and Banco Guayaquil S.A. have an ESG
Relevance Score of 4 for Governance Structure due to their exposure
to high government intervention reflected in its regulatory
framework, which has a negative impact on the credit profile and is
relevant to the ratings in conjunction with other factors.

RATING SENSITIVITIES

IDRs AND VRs

Pichincha, Guayaquil and Produbanco's IDRs and VRs are sensitive to
changes in the sovereign rating, or further deterioration on the
local operating environment that leads to a material deterioration
in their financial profiles. Given the current low levels of their
IDRs and VRs, downside potential would only arise if the worsening
operating environment and/or the country's policy framework
materially increases the likelihood of these banks defaulting on
their financial obligations over the short term.

SUPPORT RATING AND SUPPORT RATING FLOOR

Ecuador's propensity or ability to provide timely support to
Pichincha and Guayaquil is not likely to change given the
sovereign's low sub-investment-grade IDR. As such, the SR and SRF
have no upgrade potential.

Produbanco's support rating has limited upgrade potential over the
rating horizon given Ecuador's low sovereign rating, and the weak
and uncertain operating environment.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Ecuador Sovereign Rating.

ESG CONSIDERATIONS

Banco de la Produccion S.A. Produbanco y Subsidiarias: 4;
Governance Structure: 4

Banco Guayaquil, S.A.: 4; Governance Structure: 4 Banco Pichincha
C.A. y Subsidiarias: 4; Governance Structure: 4

Pichincha, Produbanco and Banco Guayaquil S.A. have an ESG
Relevance Score of 4 for Governance Structure due to their exposure
to high government intervention reflected in its regulatory
framework, which has a negative impact on the credit profile and is
relevant to the ratings in conjunction with other factors.



=========
H A I T I
=========

HAITI: IMF Releases Statement re Request for Rapid Credit Facility
------------------------------------------------------------------
Kristalina Georgieva, Managing Director of the International
Monetary Fund (IMF), issued the following statement:

"Like many countries, Haiti's serious economic challenges have the
potential to be significantly compounded by the devastating effects
of COVID-19. The government is seeking to help protect the people
of Haiti from the impact of this rapidly evolving global pandemic
and to prevent the further spread of the virus. In the context of
adverse global developments, Haiti is facing financing constraints
which complicate the provision of the most basic healthcare
measures and will require the support of international
stakeholders.

"In light of the urgent need to step up action to protect the
Haitian people and the economy, the authorities have requested our
financial support through the Fund's Rapid Credit Facility. The
approval of this emergency financial tool, would provide financing
in support of policies that would direct funds swiftly to Haiti's
most affected sectors, including the healthcare system, to bolster
the initial response to COVID-19. Our IMF staff team is working
expeditiously to respond to this request so that a proposal can be
considered by the Fund's Executive Board in the coming weeks.

"Our objective is to provide rapid support to help Haiti address
the effects of a mounting health crisis and support spending on
health and social benefits to limit the human costs of COVID-19."



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

GRUPO FAMSA: Fitch Downgrades LT Issuer Default Rating to CC
------------------------------------------------------------
Fitch Ratings has downgraded Grupo Famsa S.A.B. de C.V.'s Long-Term
Local and Foreign Issuer Default Ratings to 'CC' from 'CCC-'. Fitch
has also downgraded the company's USD81 million Senior Notes due
2024 to 'CC'/'RR4' from 'CCC-'/'RR4'. In addition, Fitch downgraded
the national long term rating to 'CC(mex)' from 'CCC-(mex)' and
affirmed Famsa's Short-Term National Scale Rating at 'C(mex)'.

The 'CC' ratings reflect Famsa's continued tight liquidity compared
with its short-term debt and the weakened position of the company
to refinance its upcoming 2020 notes maturity, which represents 39%
of its short-term obligations amid an extremely challenging
operating and financial environment. The 2020 notes not tendered on
the December's exchange offer come due on June 1, 2020. The ratings
also factor the uncertainty over Famsa's capital structure and
operations given the expected lower sales volume and profitability
in the context of the coronavirus related disruptions and the
Mexican peso depreciation against the U.S. dollar.

Famsa has been meeting its debt obligations with internal cash
generation, but the upcoming USD59 million maturity related to its
2020 senior notes has not been refinanced. While Famsa has been
exploring options to refinance its upcoming senior notes maturity,
it is running out of time. In Fitch's view, it is imperative for
Famsa to restructure its short-term debt maturities, otherwise
default risk would become more probable.

KEY RATING DRIVERS

High Refinancing Risk: In Fitch's opinion, default appears probable
and, absent any refinancing, the probability of a debt
restructuring is increasing in the very near term due to high
refinancing risk and limited cash flow generation from the retail
business. Fitch estimates Famsa's first-quarter 2020 (1Q20) retail
business will show weak available cash to face short-term debt. As
of Dec. 31, 2019, Famsa had MXN3.7 billion in cash and MXN2.9
billion in short-term debt. Fitch estimates that around 10%-20% of
Famsa's cash is readily available while the rest of it sits at
Banco Ahorro Famsa (BAF)'s level, which Fitch considers as
restricted for purposes of debt repayment at the holding company.

Debt maturities for the second quarter of 2020 total MXN1.7
billion, while maturities for the second half of the year are an
additional MXN0.9 billion. Fitch estimates Famsa's tight liquidity
position will be exacerbated by negative FCF of the retail business
that Fitch forecast for the upcoming months given the current
challenging operating environment and expected contraction in
consumer spending.

High Leverage: Fitch believes Famsa's capital structure is
unsustainable over the long term. As of Dec. 31, 2019, Fitch's
estimated Famsa's leverage at above 10x (calculated pre-IFRS 16).
Fitch expects leverage to remain high given its persistent negative
FCF generation and limited profitability amid the peso depreciation
against the U.S. dollar, weak or negative economic growth and a
highly competitive environment.

Famsa has been pursuing a number of initiatives to improve its
financial profile over the past couple of years. However, the
increasingly challenging environment along with a still weak
portfolio quality, have hindered those initiatives to materialize.
Fitch believes the company's operational challenges are high and
need to be achieved despite the current macroeconomic scenario.

Governance: : Famsa has an ESG Relevance Score of 5 for Management
Strategy due to the number of operational restructures that have
occurred due to challenges the company has faced in implementing
its strategy, which has a negative impact on the credit profile and
is highly relevant to the rating in conjunction with other factors.
. Famsa has a score of 4 for Governance Structure due to board
effectiveness and ownership concentration, which has an unfavorable
impact on the credit profile and is relevant to the rating in
conjunction with other factors. The company has a score of 4 for
Group Structure given that the company presents a below average
transparency of related-party transactions. This has a negative
impact on the credit profile and is relevant to the rating in
conjunction with other factors. Also, the company has a score of 5
for Financial Transparency due to a track record of material
differences from audited financial statements and the company's
reported figures. This has a negative impact on the credit profile
and is highly relevant to the rating in conjunction with other
factors.

DERIVATION SUMMARY

Famsa is one of the main retailers in Mexico, offering durable
goods and consumer services primarily to the middle and
lower-middle segments of the Mexican population. Connected with the
retail operations, Famsa also offers financial services to the
customers who opt to purchase its products on credit, many of whom
do not typically have access to other forms of financing. However,
the company's weak liquidity, recurring negative FCF for the retail
business and the expected negative impacts in the economies of
Mexico and the U.S.A. weigh on Famsa's 'CC' rating.

Famsa is less geographically diversified than Grupo Elektra S.A.B.
de C.V. (BB+/Stable) and Grupo Unicomer Company Limited
(BB-/Positive), but it is well positioned in its influence area of
northern Mexico. The company also has smaller scale in number of
stores than Grupo Elektra and Grupo Unicomer, with 401 stores
compared with more than 1,000.

From a financial risk profile view, the company has similar
adjusted leverage than J.C. Penney (JCP; CCC+) and Rite Aid
(B-/Stable) with ratios above the 7.0x (calculated pre-IFRS 16).
The three companies have neutral to negative FCF, but JCP and Rite
Aid have stronger liquidity position than Famsa's.

Compared with Latin American peers, the company maintains a weaker
financial position than Elektra and Unicomer. Famsa's operating
margins are lower than Unicomer's, while Elektra has the best
operating margins of the three companies.

KEY ASSUMPTIONS

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

  - Fitch base case projections for 2020 considers a decline in
revenues for a three-month period and then a gradual recovery to
levels close to 2019 revenues by year end;

  - Average growth of 3.8% annually in 2021‒2023;

  - Average EBITDA margin of 3.6% for 2020 and 7% during
2021‒2023;

  - Consolidated debt, excluding bank deposits and operating
leases, of around MXN8 billion on average for 2020‒2023;
  
  - Average annual capex of MXN237 million in 2020‒2023;

  - No dividend payments for 2020‒2023;

  - BAF sells assets for MXN0.5 billion in 2020 and MXN1.0 billion
in 2021.

RECOVERY ASSUMPTIONS

For issuers with Issuer Default Ratings (IDRs) of 'B+' and below,
Fitch performs a recovery analysis for each class of obligations of
the issuer. The issue rating is derived from the IDR and the
relevant Recovery Rating (RR) and notching, based on the going
concern enterprise value of a distressed scenario or the company's
liquidation value.

The recovery analysis assumes that Famsa would be considered a
going-concern in bankruptcy and that the company would be
reorganized rather than liquidated. Fitch has assumed a 10%
administrative claim.

Fitch's recovery analysis for Famsa places a going concern value
under a distressed scenario of approximately MXN3.8 billion; based
on a going-concern EBITDA of MXN0.8 billion and a 4.5x multiple.
The going concern value is higher than the liquidation value, which
Fitch estimates at about MXN1.8 billion.

The going-concern EBITDA estimate reflects Fitch's view of a
sustainable, post-reorganization EBITDA level upon which Fitch
bases the valuation of the company. The MXN0.8 billion
going-concern EBITDA assumption reflects a 30% discount from
average annual EBITDA generation in the last four years. The
discount reflects deterioration of U.S. operations and, at the same
time, a significant consumer contraction in Mexico. The 4.5x
multiple reflect the weakened business model and high degree of
execution risks under challenging market conditions.

The liquidation value considers no value for cash due to the
assumption that cash dissipates during or before the bankruptcy.
Fitch applied a 100% discount on the credit portfolio, given that
most of it is allocated within BAF, which is a regulated entity and
has another liquidation process. Fitch has also applied a 50%
discount on inventory and PPE as a proxy for the liquidation value
of those assets.

For the new USD80.9 million secured notes due 2024, Famsa's
waterfall results in a 61% recovery corresponding to a Recovery
Rating of 'RR3'. However, according to Fitch's 'Country-Specific
Treatment of Recovery Ratings Criteria', published in April 2018,
the Recovery Rating for Mexican corporate issuers is capped at
'RR4', constraining the upward notching of issue ratings in
countries with a less reliable legal environment. Therefore, the
Recovery Rating for Famsa's 2024 new senior notes is 'RR4'.

RATING SENSITIVITIES

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

  - Successful refinancing of the 2020 notes and revolver credit
access;

  - Improved liquidity and maturity profiles, which will also
enable Famsa to strengthen its operating profile;

  - Interest coverage measured as EBITDAR/interest paid + rents
(calculated pre-IFRS16) trending to levels above 1x for the
foreseeable future.

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

  - Failure to improve liquidity;

  - Continued operational pressures resulting in EBITDAR/interest
paid + rents (calculated pre-IFRS16) below 1.0x;

  - Defaults on scheduled amortization/interest payments.

LIQUIDITY AND DEBT STRUCTURE

Poor Liquidity Position: Fitch views the company's liquidity as
poor based on its low available cash position to cover short-term
debt and interest expenses. Despite the recent debt exchange
completion in December, Famsa's capacity to cover debt service with
its cash flow from operations is viewed as strained.

SUMMARY OF FINANCIAL ADJUSTMENTS

Gains on fixed asset sales were deducted from the operating income.
Financial Statements were adjusted to reverse the IFRS 16 effect.

ESG CONSIDERATIONS

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.

Famsa has an ESG Relevance Score of 5 for Management Strategy due
to the number of operational restructures that have occurred due to
challenges the company has faced in implementing its strategy,
which has a negative impact on the credit profile and is highly
relevant to the rating in conjunction with other factors.

Famsa has an ESG Relevance Score of 4 for Governance Structure due
to board effectiveness and ownership concentration, which has an
unfavorable impact on the credit profile and is relevant to the
rating in conjunction with other factors.

Famsa has an ESG Relevance Score of 4 for Group Structure given
that the company presents a below average transparency of
related-party transactions. This has a negative impact on the
credit profile and is relevant to the rating in conjunction with
other factors.

Famsa has an ESG Relevance Score of 5 for Financial Transparency
due to a track record of material differences from audited
financial statements and the company's reported figures. This has a
negative impact on the credit profile and is highly relevant to the
rating in conjunction with other factors.

GRUPO IDESA: Fitch Downgrades LT Issuer Default Rating to C
-----------------------------------------------------------
Fitch Ratings has downgraded Grupo IDESA, S.A. de C.V.'s Long-Term
Local and Foreign Currency Issuer Default Ratings (IDRs) to 'C'
from 'CCC-'. In addition, Fitch has downgraded Grupo IDESA's senior
unsecured notes to 'C'/'RR4'from 'CCC'-/'RR4'.

The downgrades follow Grupo IDESA's announced launch of a tender
offer to exchange its unsecured notes due in 2020 for new secured
notes due in 2026, which Fitch considers a distressed debt exchange
(DDE) as per its DDE criteria. In Fitch's opinion, the offering
imposes to bondholders of existing notes a limited alternative to
decline the proposed transaction given the company's financial
distress and turbulent credit market conditions. The present
transaction could be considered to be conducted to avoid a
traditional payment default. Also, the offering imposes to
bondholders of existing notes, a material reduction in terms of the
existing 2020 notes, as the exchange will eliminate restrictive
covenants and certain events of default included in the existing
senior notes indenture for the bonds that are not tendered. The
proposed amendments require the affirmative vote of Holders of more
than 95% of the outstanding aggregate principal amount of the
existing notes.

If the proposed tender offer is successfully completed, the IDR
will be downgraded to Restricted Default (RD). The IDR would be
subsequently upgraded to a rating level reflecting the post-DDE
credit profile, considering full refinancing (unsecured notes and
term loan with Inbursa) and reduction in most immediate refinancing
risks. Nevertheless, Grupo IDESA's unsustainable capital structure
should limit the potential rating upgrade post exchange offer at
the 'CCC' category.

KEY RATING DRIVERS

Exchange Offer Qualifies as DDE: The exchange offer, if agreed,
will consist of a DDE under Fitch's criteria, as it is way to avoid
event of default in the short to medium term, as well considering
that existing bondholders, that choose to not participate in the
exchange will face reduction in terms and conditions with
elimination of covenants. The exchange offer should not provide a
reduction in principal, if terms accepted by Early Date, and does
count with an increase in interest (7.785% to 9.375%), but extends
the payment in six years and requests the elimination of most
restrictive covenants, some affirmative covenants, certain Events
of Default and modify certain conditions on acceleration and
rescissions of acceleration applicable to the existing outstanding
unsecured notes.

According to Fitch's DDE criteria, a material reduction in terms
has occurred when an exchange proposes a change from a cash pay
basis to pay-in-kind (PIK), discount basis or other form of noncash
payment, as well as when exchange offers that are accepted if the
tendering bondholder also consents to indenture amendments that
materially impair the position of holders that do not tender.

New Secured Issuance: The existing USD300 million of 7.785% senior
unsecured notes due 2020 will be exchanged for new 9.375% senior
secured notes due 2026. The new secured issuance will be fully and
unconditionally guaranteed by a pool of Grupo IDESAs subsidiaries
(Alveg Distribucion Quimica, S.A. de C.V.; Excellence Sea & Land
Logistics, S.A. de C.V.; Industrias Derivados del Etileno, S.A. de
C.V.; Inmobiliaria Idesa, S.A. de C.V.; Sintesis Organicas, S.A. de
C.V.; and Novidesa, S.A. de C.V.). The new notes will count with
the following secured package: first-priority lien on all shares
and substantially all assets (excluding accounts receivable) of the
Subsidiary Guarantors, other than Novidesa and Excellence Sea &
Land; a second-priority lien on the shares of Etileno XXI, S.A. de
C.V. and a contingent lien on the company's shareholder loan to
Braskem-IDESA, which shall be shared on a pro-rata basis with the
lenders under the company's credit facility with Banco Inbursa S.A.
Institucion de Banca Múltiple, Grupo Financiero Inbursa.

The exchange offering under the new notes also proposes an interest
rate composed of a base interest and a supplementary 0.5% mandatory
PIK component. Under the proposed offer, base interest would accrue
at a rate of 8.875% if paid in cash and 9.875% if PIK, with option
for the company to PIK up to 75% of base interest on the first
coupon, up to 50% of the second and third coupons, and up to 25%
for the fourth coupon."

Elevate Refinancing Risks: Grupo IDESA faces debt maturities of
approximately USD525 million by 2020. As of Dec. 31, 2019, cash on
hand was USD29 million, while total debt was USD543 million. Credit
lines with Inbursa, which has a 24% equity stake in the company,
account for USD130 million and is due on June 20, 2020. The
refinancing of this loan is conditioned to the completion of the
exchange offer, and will have its maturity extended in 5.5 years,
six months before the new secured notes.

High Leverage: During 2019, Grupo IDESA's operating EBITDA was
USD30 million, resulting in a net leverage ratio of 17x, an
increase from 12x in 2018. Leverage increased due to lower
petrochemical volumes and prices and no cash inflow from
Braskem-IDESA in 2019; it had received around USD7.5 million in
2018. For 2020, net leverage could decline to around 13x if it
receives around USD10 million of cash inflow from Braskem-IDESA and
the expansion of the logistic business (maritime terminal).

Joint Venture Investments: Grupo IDESA contributed USD513 million
to the Braskem-IDESA joint venture (JV); most of Grupo IDESA's
current debt was used to support its 25% stake in this venture.
Grupo IDESA's 25% stake represents USD96 million of the total
estimated EBITDA generated by the JV of USD385 million during 2019.
This facility is capable of producing 1.0 million tons of
polyethylene per year. Grupo IDESA's other equity investments
include CyPlus-IDESA, a 50/50 JV with Advent International, which
owns a sodium-cyanide production facility of 40,000 mty. During
2019, CyPlus paid about USD4million to Grupo IDESA, related in
interest accrued on the loan granted.

High Reliance on Commodity Chemicals: Grupo IDESA generated 46% of
its EBITDA from the distribution of solvents and chemicals within
Mexico and 45% from chemicals manufacturing, with most of the
remainder from chemical storage and handling services during 2018.
The company has limited pricing power with its suppliers and
customers, as the company's main product prices are based on
international reference prices and are somewhat correlated to the
price of oil.

DERIVATION SUMMARY

Grupo IDESA's business scale and vertical integration are limited,
and its product portfolio is more dependent on feedstock and
product price dynamics. This limited pricing power creates higher
volatility for cash flows when compared to peers such as Cydsa,
S.A.B. de C.V. (BB+/Stable) or Unigel Participacoes S.A
(B+/Stable). Grupo IDESA's scale and cost position mostly as a
converter or distributor is consistent with those of companies in
the low 'BB' to 'B' rating categories. Weak product spreads and
lack of feedstock, combined with high debt used to fund
investments, have significantly pressured Grupo IDESA's financial
profile and increased its reliance on expected cash flows from
Braskem-IDESA, and in continued growth in chemical distribution
activities. Grupo IDESA's leverage and refinancing risks are high
and consistent with that of a 'CCC' rating category.

KEY ASSUMPTIONS

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

  -- Revenue, measured in U.S. dollars, to decline to around USD465
million in 2020 and limited growth in 2020 with the expansion of
the logistic segment;

  -- Adjusted EBITDA of around USD34 million in 2020;

  -- Cash flows to be received from Braskem-IDESA in 2020 around
USD10 million;

  -- Capex to average around USD25 million in 2020, mostly
reflecting the expansion of the maritime terminal;

  -- No dividends distributions.

Recovery Ratings Assumptions

The recovery analysis assumes a hybrid going concern approach for
Grupo IDESA at a 4.5x of estimated post restructuring EBITDA of
USD24 million and a value of Grupo IDESA's 25% stake in
Braskem-IDESA, resulting from the USD500 million replacement value
of Grupo IDESA's equity at a 50% advance rate. Fitch has assumed a
10% administrative claim.

Fitch applies a waterfall analysis to the post-default enterprise
value based on the relative claims of the debt in the capital
structure. Fitch's debt waterfall assumptions take into account the
company's total debt at Dec. 31, 2019. These assumptions result in
a recovery rate for the unsecured bonds within the 'RR4' range.

RATING SENSITIVITIES

The completion of the proposed exchange offer will lead to a
downgrade of the Long-term IDRs to 'RD'. The IDR would be
subsequently upgraded to a rating level reflecting the post-DDE
credit profile.

LIQUIDITY AND DEBT STRUCTURE

Insufficient Liquidity: Grupo IDESA faces debt maturities of
approximately USD525 million by 2020. As of Dec. 31, 2019, cash on
hand was USD29 million, while total debt was USD543 million. Credit
lines with Inbursa accounts for USD130 million, and is due in June
20, 2020. The refinancing of this loan is conditioned to the
completion of the exchange offer, and will have its maturity
extended in 5.5 years, six months before the new secured notes.
Grupo IDESA's main debt consists of the USD300 million of senior
unsecured notes due in December 2020 and Inbursa's credit line.
Inbursa's line accrues interest which Fitch estimates will be
around USD50 million at maturity.

ESG CONSIDERATIONS

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



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

METRO PUERTO RICO: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Metro Puerto Rico LLC
        PO Box 363135
        San Juan, PR 00936-3135

Chapter 11 Petition Date: March 31, 2020

Court: United States Bankruptcy Court
       District of Puerto Rico

Case No.: 20-01543

Debtor's Counsel: Jose Prieto, Esq.
                  JPC LAW OFFICE
                  PO Box 363565
                  San Juan, PR 00936-3565
                  Tel: (787) 607-2166
                  E-mail: jpc@jpclawpr.com

Estimated Assets: $1 million to $10 million

Estimated Liabilities: $500,000 to $1 million

The petition was signed by Felix I. Caraballo, president.

A copy of the petition containing, among other items, a list of the
Debtor's 20 largest unsecured creditors is available for free at
PacerMonitor.com at:

                     https://is.gd/wtoAL2

PETROLEOS DE VENEZUELA: US Charge Contractor With Money Laundering
------------------------------------------------------------------
Luc Cohen at Reuters reports that U.S. prosecutors have charged a
Venezuelan oilfield contractor with money laundering for bribing
officials at state oil company Petroleos de Venezuela to win
overpriced contracts, and then seeking to hide the proceeds in the
United States.

The charges are the latest in a U.S. investigation of corruption at
PDVSA, a once prolific company whose crude output has plunged in
recent years due to mismanagement and pilfering of funds,
contributing to Venezuela's humanitarian crisis, according to
Reuters.

In a complaint filed, federal prosecutors in the Southern District
of Florida said Leonardo Santilli received nearly $150 million from
PDVSA-controlled joint ventures with foreign companies in the
Orinoco belt between 2014 and 2017 for contracts to supply
equipment, the report relays.

The complaint said that in at least three instances, the joint
ventures paid Santilli four to five times the market prices for the
goods he provided, citing bank records, the report says.

Prosecutors also detailed millions of dollars in bribes Santilli
allegedly paid to officials at the joint ventures to win the
contracts, citing emails, bank records, and interviews with
confidential witnesses, including some PDVSA officials who
acknowledged receiving bribes, the report discloses.

Santilli sought to launder the proceeds through Florida bank
accounts, and authorities in 2018 seized some $44.7 million of his
funds, prosecutors said, the report adds.

                          About PDVSA

Founded in 1976, Petroleos de Venezuela, S.A. (PDVSA) is the
Venezuelan state-owned oil and natural gas company, which engages
in exploration, production, refining and exporting oil as well as
exploration and production of natural gas.  It employs around
70,000 people and reported $48 billion in revenues in 2016.

As reported in Troubled Company Reporter-Latin America on June 3,
2019, Moody's Investors Service withdrew all the ratings of
Petroleos de Venezuela, S.A. including the senior unsecured and
senior secured ratings due to insufficient information. At the
time of withdrawal, the ratings were C and the outlook was stable.

Citgo Petroleum Corporation (CITGO) is Venezuela's main foreign
asset.  CITGO is majority-owned by PDVSA.  CITGO is a United
States-based refiner, transporter and marketer of transportation
fuels, lubricants, petrochemicals and other industrial products.

However, CITGO formally cut ties with PDVSA at about February 2019
after U.S. sanctions were imposed on PDVSA.  The sanctions are
designed to curb oil revenues to the administration of President
Nicolas Maduro and support for the Juan Guaido-headed party.

SEARS HOLDINGS: Dist. Court Disallows Assignment of MOAC Lease
--------------------------------------------------------------
In the appeals case MOAC MALL HOLDINGS LLC, Appellant, v. TRANSFORM
HOLDCO LLC and SEARS HOLDINGS CORPORATION, et al. Appellees, No. 19
Civ. 09140 (CM) (S.D.N.Y.) Chief District Judge Colleen McMahon
vacates the Bankruptcy Court's order to the extent it approved the
assumption and assignment of Sears' lease at the Mall of America to
Transform and remands to the Bankruptcy Court for further
proceedings.

MOAC took an appeal from an order issued by Bankruptcy Judge Robert
Drain approving the assignment and assumption of Sears' lease at
the Minneapolis shopping mall cum amusement and entertainment
venue.

Transform Leaseco LLC, an affiliate and wholly-owned subsidiary of
Transform Holdco LLC, as the approved assignor, is not a business
establishment.  Transform was formed and is headed by Sears' final
CEO, Eddie Lampert, and several other former Sears executives.

Transform's goal is to gain control of substantially all of Sears'
assets, including Sears' many real estate holdings, through Sears'
bankruptcy proceedings.  Transform provisionally acquired 660 Sears
leases in a sale order entered by the Bankruptcy Court, 659 of
which the court has approved for assignment to Transform. Transform
plans to continue to operate approximately 400 of these 660 leases
(i.e., Transform will continue to operate Sears stores at those
locations) and to market the remaining 260 in order to find new
tenants to occupy those premises.

Mall of America is not interested in seeing Sears' three-story
building leased out by Transform. Mall of America's owner, MOAC,
wants the lease to revert to it, the landlord, so that it can
control who gets to occupy that very prestigious space. MOAC
insists that, under certain provisions in the Bankruptcy Code that
were passed to protect the owners and tenants of "shopping
centers," the lease may not be assigned to Transform and must
revert to the landlord.

Judge Drain disagreed with MOAC's argument that 11 U.S.C. sections
365(b)(3)(A) and/or (b)(3)(D) prohibited the assignment of the Mall
of America lease to Transform. He approved the assignment and
assumption as proposed by Sears. But Judge Drain admitted that, at
least insofar as his ruling addressed section 365(b)(3)(A), his
ruling was one of first impression.

MOAC has appealed from the Bankruptcy Court's order.

The District Court agrees with the Bankruptcy Jthat nothing in
section 365(b)(3)(D) of the Code prohibits the transfer of the
Lease to Transform. However, the District Court disagrees with his
conclusion that section 365(b)(3)(A) does not bar the proposed
assignment. In section 365(b)(3)(A), Congress provided a rigorous
standard that an assignee of a bankrupt's shopping center lease
must meet in order to give the landlord adequate assurance that the
new tenant will not shortly end up in bankruptcy. In this case, the
Bankruptcy Court found that the tenant did not meet that standard.

The judge's decision that an alternative provision in Sears' Lease
could be substituted for the statutory standard effectively read
the congressionally-mandated standard out of the Bankruptcy Code.
The District Court does not believe that result can be justified.
The proposed assignment is, therefore, disallowed.

A copy of the District Court's Decision dated Feb. 27, 2020 is
available at https://bit.ly/2IvwqPx from Leagle.com.

MOAC Mall Holdings LLC, Appellant, represented by Daniel Abraham
Lowenthal, III -- dalowenthal@pbwt.com  -- Patterson, Belknap, Webb
& Tyler LLP, David Wayne Dykhouse -- dwdykhouse@pbwt.com --
Patterson, Belknap, Webb & Tyler LLP, Tom Flynn --
tflynn@larkinhoffman.com -- Larkin, Hoffman, Daly & Lindgren, Ltd.
& Alexander J. Beeby -- abeeby@larkinhoffman.com -- Larkin,
Hoffman, Daly & Lindgren, Ltd.

Sears Holdings Corporation, Appellee, represented by Garrett Avery
Fail , Weil, Gotshal & Manges LLP, Jacqueline Marcus --
jacqueline.marcus@weil.com -- Weil, Gotshal & Manges LLP, Ray C.
Schrock -- ray.schrock@weil.com -- Weil Gotshal & Manges LLP &
Sunny Singh -- sunny.singh@weil.com -- Weil, Gotshal & Manges LLP.

Transform Holdco LLC, Appellee, represented by Rachel Ehrlich
Albanese -- rachel.albanese@dlapiper.com -- DLA Piper US LLP,
Richard A. Chesley -- richard.chesley@dlapiper.com  -- DLA Piper
LLP, Robert Craig Martin -- craig.martin@dlapiper.com -- DLA Piper
LLP & Alana M. Friedberg -- alana.friedberg@dlapiper.com -- DLA
Piper LLP.

                      About Sears Holdings

Sears Holdings Corporation (OTCMKTS: SHLDQ)
--http://www.searsholdings.com/-- began as a mail ordering catalog
company in 1887 and became the world's largest retailer in the
1960s.  At its peak, Sears was present in almost every big mall
across the U.S., and sold everything from toys and auto parts to
mail-order homes.  Sears claims to be is a market leader in the
appliance, tool, lawn and garden, fitness equipment, and automotive
repair and maintenance retail sectors.

Sears and Kmart merged to form Sears Holdings in 2005 when they had
3,500 US stores between them. Kmart emerged in 2005 from its own
bankruptcy.

Unable to keep up with online stores and other brick-and-mortar
retailers, a long series of store closings has left it with 687
retail stores in 49 states, Guam, Puerto Rico, and the U.S. Virgin
Islands as of mid-October 2018.  At that time, the Company employed
68,000 individuals, of whom 32,000 are full-time employees.

As of Aug. 4, 2018, Sears Holdings had $6.93 billion in total
assets, $11.33 billion in total liabilities and a total deficit of
$4.40 billion.

Unable to cover a $134 million debt payment due Oct. 15, 2018,
Sears Holdings Corporation and 49 subsidiaries sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 18-23538) on Oct. 15,
2018.  The Hon. Robert D. Drain is the case judge.

The Debtors tapped Weil, Gotshal & Manges LLP as legal counsel;
M-III Partners as restructuring advisor; Lazard Freres & Co. LLC as
investment banker; DLA Piper LLP as real estate advisor; and Prime
Clerk as claims and noticing agent.

The U.S. Trustee for Region 2 appointed nine creditors, including
the Pension Benefit Guaranty Corp., and landlord Simon Property
Group, L.P., to serve on the official committee of unsecured
creditors.  The committee tapped Akin Gump Strauss Hauer & Feld LLP
as legal counsel; FTI Consulting as financial advisor; and Houlihan
Lokey Capital, Inc. as investment banker.

The U.S. Trustee for Region 2 on July 9, 2019, appointed five
retirees to serve on the committee representing retirees with life
insurance benefits in the Chapter 11 cases.

                         *     *     *

In February 2019, Bankruptcy Judge Robert Drain granted Sears
Holdings approval to sell the business to majority shareholder and
CEO Eddie Lampert for approximately $5.2 billion.  Lampert's ESL
Investments, Inc., has won an auction to acquire substantially all
of Sears' assets, including the "Go Forward Stores" on a
going-concern basis.  The proposal will allow 425 stores to remain
open and provide ongoing employment to 45,000 employees.

SPANISH BROADCASTING: Swings to $928,000 Net Loss in 2019
---------------------------------------------------------
Spanish Broadcasting System, Inc. filed with the Securities and
Exchange Commission its Annual Report on Form 10-K reporting a net
loss of $928,000 on $156.66 million of net revenue for the year
ended Dec. 31, 2019, compared to net income of $16.49 million on
$142.37 million of net revenue for the year ended Dec. 31, 2018.

As of Dec. 31, 2019, the Company had $469.04 million in total
assets, $549.34 million in total liabilities, and a total
stockholders' deficit of $80.30 million.

Crowe LLP, in Fort Lauderdale, Florida, the Company's auditor since
2013, issued a "going concern" qualification in its report dated
March 30, 2020, citing that the 12.5% Senior Secured Notes had a
maturity date of April 15, 2017.  Cash from operations or the sale
of assets was not sufficient to repay the notes when they became
due.  In addition, at December 31, 2019, the Company had a working
capital deficiency.  These factors raise substantial doubt about
its ability to continue as a going concern.

The Company's radio segment net revenue increased $14.0 million or
11% due to increases in local, network, and digital sales which
were offset by a decrease in national sales.  The Company's special
events revenue increased primarily in its Los Angeles, New York and
San Francisco markets.  The Company's television segment net
revenue increased $0.3 million or 2%, due to increases in local
sales offset by a decrease in special event and subscriber based
revenue.  Consolidated net revenue excluding political, a non-GAAP
measure, totaled $156.0 million compared to $137.5 million for the
same prior year period, resulting in an increase of 13%.

Consolidated Adjusted OIBDA, a non-GAAP measure, totaled $51.3
million compared to $50.1 million for the same prior year period,
resulting in an increase of $1.2 million or 2%.  The Company's
radio segment Adjusted OIBDA increased 7%, primarily due to the
increase in net revenue of $14.0 million which was partially offset
by the increase in operating expense of approximately $9.9
million.

Radio station operating expenses increased mainly due to the
absence of a prior year positive impact of legal settlements in
addition to increases in special events, compensation and benefits,
barter, commissions and music license fees, which were partially
offset by decreases in professional fees, affiliate station
compensation and an increase in production tax credits.  The
Company's television segment Adjusted OIBDA decreased $1.6 million
or 33%, due to the increase in operating expenses of $1.9 million
and partially offset by an increase in net revenue of $0.3
million.

Television station operating expenses increased primarily due to
increases in production costs, barter, and commission expenses
which were partially offset by a decrease in special events
expenses and an increase in production tax credits.  The Company's
corporate expenses, excluding non-cash stock-based compensation,
increased approximately 12% primarily due to increases in
compensation and insurance expenses partially offset by a decrease
in professional fees.  Consolidated Adjusted OIBDA excluding
political, a non-GAAP measure, totaled $50.7 million compared to
$45.6 million for the same prior year period, representing an
increase of 11%.

Operating income totaled $38.6 million compared to $51.6 million
for the same prior year period, representing a decrease of $13.0
million or 25%.  This decrease in operating income was primarily
due to the prior year recognition of gain on sale of assets and the
current year increases in operating expenses, executive severance
expenses and recapitalization costs partially offset by an increase
in net revenue and not recognizing an impairment charge in the
current period.

                     Discussion and Results

"As our release demonstrates, we delivered outstanding Q4 results
which, in turn, contributed to our best annual financial showing in
over 15 years," commented Raul Alarcon, chairman and CEO.  "All
business units including radio, television, experiential and
interactive exhibited sustained increases with our core radio
operation ranked among the leaders in the industry in ratings,
revenue, SOI and margin growth."

"In addition, fiscal 2020 started off exceptionally well and, as a
result, we're confident of a strong rebound later in the year as
our industry, our nation and the world eventually recover from the
effects of the COVID-19 pandemic.  For now, we are adapting
operationally, financially and strategically at all levels and in
all markets during this interim period so as to protect our
personnel while continuing to inform, entertain and serve audiences
and advertisers in anticipation of a surging demand for ad
inventory and rescheduled live events as the year progresses."

"In the meantime, we're adopting an old motto that has served
American businesses extremely well since the beginning of the 19th
century: 'We're Open for Business.'"

                     Quarter Ended Results

For the quarter-ended Dec. 31, 2019, consolidated net revenue
totaled $46.1 million compared to $39.6 million for the same prior
year period, resulting in an increase of 16%.  The Company's radio
segment net revenue increased 15% due to increases in local,
special events, network, and digital which were partially offset by
a decrease in national sales.  The Company's television segment net
revenue increased 31%, due to the increase in local sales which
were partially offset by decreases in national sales.  Consolidated
net revenue excluding political, a non-GAAP measure, totaled $45.8
million compared to $36.9 million for the same prior year period,
resulting in an increase of 24%.

Consolidated Adjusted OIBDA, a non-GAAP measure, totaled $20.1
million compared to $17.4 million for the same prior year period,
representing an increase of $2.7 million or 16%.  The Company's
radio segment Adjusted OIBDA increased 17%, primarily due to the
increase in net revenue of approximately $5.2 million partially
offset by an increase in operating expenses of $2.2 million. Radio
station operating expenses increased mainly due to increases in
special events expenses, professional fees, compensation, and music
license fees expenses, which were partially offset by a decrease
advertising expenses.  The Company's television segment Adjusted
OIBDA increased approximately $0.6 million, due to increase in net
revenue of approximately $1.3 million partially offset an increase
in operating expenses of approximately $0.7 million.  Television
station operating expenses increased primarily due to increases in
production costs, barter expense and taxes and license fees. The
Company's corporate expenses, excluding non-cash stock-based
compensation, increased $0.9 million or 36%, mostly due to
increases in compensation, insurance and professional fees.

Consolidated Adjusted OIBDA excluding political, a non-GAAP
measure, totaled $19.8 million compared to $14.9 million for the
same prior year period, representing an increase of 33%.

Operating income totaled $17.3 million compared to $14.3 million
for the same prior year period, representing an increase of
approximately $3.0 million or 21%.  This increase in operating
income was primarily due to the increase in net revenue partially
offset by the increase in operating expenses.

     Continued Recapitalization and Restructuring Efforts

Spanish Broadcasting said, "We have not repaid our outstanding
Notes since they became due on April 17, 2017, and we continue to
evaluate all options available to refinance the Notes.  While we
assess how to best achieve a successful refinancing of the Notes,
we have continued to pay interest on the Notes, payments that a
group of investors purporting to own our Series B preferred stock
have challenged through the institution of litigation in the
Delaware Court of Chancery as described below.  The complaint filed
by these investors revealed a purported foreign ownership of our
Series B preferred stock, which we are actively addressing,
including before the Federal Communications Commission (the "FCC")
in order to protect our broadcast licenses.  Our refinancing
efforts have been made more difficult and complex by the Series B
preferred stock litigation and foreign ownership issue.  On
December 16, 2019, we announced in a press release that we had
received a letter from a bank stating that it was highly confident
of its ability to arrange secured debt financing for up to $300
million that, in combination with a possible additional first lien
asset-based financing, would be used to repay our outstanding Notes
and to make cash purchases of our Series B preferred stock.  We
cannot assure you that the bank will be successful in raising that
financing, that we will be able to raise the additional
contemplated first lien asset-based financing or that we will be
able to reach agreement that will be acceptable to us.  We provide
more information about each of these items in our Annual Report on
Form 10-K for the year ended December 31, 2019.

"We have worked and continue to work with our advisors regarding a
consensual recapitalization or restructuring of our balance sheet,
including through the issuance of new debt or equity to raise the
necessary funds to repay the Notes.  The Series B preferred stock
litigation and the foreign ownership issue have complicated our
efforts at a successful refinancing of the Notes. The resolution of
the recapitalization or restructuring of our balance sheet, the
litigation with the purported holders of our Series B preferred
stock and the foreign ownership issue are subject to several
factors currently beyond our control.  Our efforts to effect a
consensual refinancing of the Notes, the Series B preferred stock
litigation and the foreign ownership issue will likely continue to
have a material adverse effect on us if they are not successfully
resolved.  On December 16, 2019, we announced in a press release
that we had received a letter from a bank stating that it was
highly confident of its ability to arrange secured debt financing
for up to $300 million that, in combination with a possible
additional first lien asset-based financing, would be used to repay
our outstanding Notes and to make cash purchases of our Series B
preferred stock.  We cannot assure you that the bank will be
successful in raising that financing, that we will be able to raise
the additional contemplated first lien asset-based financing or
that we will be able to reach agreement that will be acceptable to
us.  We face various risks regarding these matters which are
summarized in our Annual Report on Form 10-K for the year ended
December 31, 2019."

A full-text copy of the Form 10-K is available for free at:

                     https://is.gd/VTicvK

                  About Spanish Broadcasting

Spanish Broadcasting System, Inc. (SBS) --
http://www.spanishbroadcasting.com/-- owns and operates radio
stations located in the top U.S. Hispanic markets of New York, Los
Angeles, Miami, Chicago, San Francisco and Puerto Rico, airing the
Tropical, Regional Mexican, Spanish Adult Contemporary, Top 40 and
Urbano format genres.  SBS also operates AIRE Radio Networks, a
national radio platform of over 275 affiliated stations reaching
95% of the U.S. Hispanic audience.  SBS also owns MegaTV, a network
television operation with over-the-air, cable and satellite
distribution and affiliates throughout the U.S. and Puerto Rico,
produces a nationwide roster of live concerts and events, and owns
a stable of digital properties, including La Musica, a mobile app
providing Latino-focused audio and video streaming content and
HitzMaker, a new-talent destination for aspiring artists.


                           *********


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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
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.
.


                  * * * End of Transmission * * *