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

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

          Tuesday, May 5, 2020, Vol. 21, No. 90

                           Headlines



A R G E N T I N A

ARGENTINA: At Loggerheads with Creditors Over Debt Revamp Offer
MENDOZA PROVINCE: S&P Cuts LT Credit Rating to CCC-, Outlook Neg.


B E R M U D A

TEEKAY TANKERS: Egan-Jones Lowers Senior Unsec. Debt Ratings to B


B R A Z I L

BISCOITO GLOBO: Rio's Iconic Snack Food Closes Manufacturing Plant
COMPANHIA DE SANEAMENTO: Fitch Affirms 'BB' LT IDR, Outlook Stable
CONCESSIONARIA DE RODOVIAS: Moody's Rates BRL430MM Debt Issue Ba2
EMBRAER SA: Fitch Cuts LT IDR to BB+, Outlook Now Negative
OMEGA ENERGIA: Moody's Withdraws Ba2 Rating due to Business Reason

PETROBRAS: ANP Says Refineries Recorded Sharp Drop in Production
USIMINAS INT'L: Moody's Affirms Ba3 $750M Notes Rating, Outlook Neg
USIMINAS SIDERURGICAS: Moody's Affirms Ba3 CFR, Outlook Now Neg.


C H I L E

CAP SA: S&P Affirms 'BB+' Issuer Credit Rating


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: 1st Stage of Economic Opening Set for May 11
DOMINICAN REPUBLIC: March Prices Fell -0.52%, Paced by Transport
DOMINICAN REPUBLIC: Poised to Open More Businesses, Gradually


M E X I C O

GRUPO POSADAS: Moody's Cuts CFR & Sr. Unsec. Notes Rating to Caa1


P A N A M A

PANAMA CANAL RAILWAY: S&P Alters Outlook to Neg. & Affirms BB- ICR


P A R A G U A Y

INDUSTRIA PARAGUAYA: Fitch Cuts LT IDR to 'B', On Watch Negative


P E R U

NG PACKAGING: Fitch Gives BB+ LT IDR, Outlook Negative
TERMINALES PORTUARIOS: Fitch Affirms 'BB' Notes Rating, Outlook Neg


P U E R T O   R I C O

INTERNATIONAL FOOD: Seeks Court Approval to Hire Consultants
INTERNATIONAL FOOD: Seeks Court Approval to Hire Skyway Consultant
INTERNATIONAL FOOD: Seeks to Hire Eleventh Hour as Consultant
INTERNATIONAL FOOD: Seeks to Hire Nan-Mar LLC as Consultant


U R U G U A Y

BANQUE HERITAGE: S&P Alters Outlook to Stable & Affirms 'B+' ICR

                           - - - - -


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A R G E N T I N A
=================

ARGENTINA: At Loggerheads with Creditors Over Debt Revamp Offer
---------------------------------------------------------------
Ben Bartenstein and Jorgelina Do Rosario at Bloomberg News report
that some of Argentina's key creditors are rejecting invitations to
speak with the nation's finance team this week as both sides jockey
for more favorable terms in a $65 billion debt restructuring.

Tensions are building as the clock counts down on two key
deadlines: May 8 for a debt-exchange offer and May 22, when a
30-day grace period for coupon payments on dollar bonds maturing in
2021, 2026 and 2046 expires, according to Bloomberg News.  To close
a deal, the South American nation needs support from creditors
owning at least two-thirds of the aggregate holdings. It seems to
be far from that threshold, Bloomberg News says.

Relations are so tense that most large bondholders have even
refused to attend video calls with Economy Minister Martin Guzman,
according to people familiar with the matter, who requested
anonymity because the talks are private, Bloomberg News relates.
They cite Guzman's comments that the debt offer is non-negotiable
and concerns that exposure to confidential information would
prohibit them from trading in the nation's debt until the details
were made public, Bloomberg News relays.

Other creditors plan to talk with Argentine officials, including
Guzman, Finance Secretary Diego Bastourre and debt unit head
Lisandro Cleri later, the people said, Bloomberg News notes.

"Guzman is betting many will cave in," Daniel Kerner and Ana Abad,
analysts at Eurasia Group, wrote in a note. says the report.  "If
some or most majorities are not met, the government will stop
paying," he added.

The Economy Ministry press office didn't respond to requests for
comment.

Bloomberg News notes bondholders in each of the three main creditor
groups are looking at their litigation options if Argentina
defaults for a ninth time next month, people familiar with the
matter said.  That could set the stage for an even messier legal
battle than the nation's last debt drama from 2001 to 2016,
Bloomberg News says.  That showdown dragged on after a 2005
restructuring when a minority of holdout creditors pushed for
better terms.  This time, a large subset may reject the country's
offer, Bloomberg News discloses.

Still, President Alberto Fernandez's administration is betting that
some investors will buckle and accept the deal to protect their
other investments in the nation's provinces, companies and
commodities, Bloomberg News notes.  Guzman told TV Publica that
Argentina will continue talks "in good faith, presenting the
proposal that was already presented but discussing some details,"
Bloomberg News relates.

In the end, Guzman probably won't overhaul the offer, meaning
bondholders will reject the deal, according to Siobhan Morden, the
New York-based head of Latin America fixed income strategy at
Amherst Pierpont Securities, Bloomberg News discloses.

"Hard default still seems like the base case," she added.


                    About Argentina

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

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

As reported by the Troubled Company Reporter - Latin America on
April 14, 2020, Fitch Ratings upgraded Argentina's Long-Term
Foreign Currency Issuer Default Rating to 'CC' from 'RD' and
Short-Term Foreign Currency IDR to 'C' from 'RD'.

The TCR-LA reported on April 13, 2020, that S&P Global Ratings
also lowered its long- and short-term foreign currency sovereign
credit ratings on Argentina to 'SD/SD' from 'CCC-/C'. S&P also
affirmed the local currency sovereign credit ratings at 'SD/SD'.
There is no outlook on 'SD' ratings.

On April 9, the TCR-LA reported that Moody's Investors Service
downgraded the Government of Argentina's foreign-currency and
local-currency long-term issuer and senior unsecured ratings to Ca
from Caa2.

MENDOZA PROVINCE: S&P Cuts LT Credit Rating to CCC-, Outlook Neg.
-----------------------------------------------------------------
S&P Global Ratings lowered its long-term credit ratings on the
province of Mendoza to 'CCC-' from 'B-'. The outlook remains
negative.

Outlook

S&P said, "The negative outlook on Mendoza reflects our view that a
default or distressed debt exchange is inevitable in the next six
months, given the province's severe liquidity crunch, absent
unanticipated and significantly favorable changes in its economic
and financial conditions. We expect the province's fiscal
performance and liquidity position to remain extremely fragile
given that the pandemic is aggravating Argentina's already complex
economic scenario."

Downside scenario

S&P said, "We could lower the ratings on Mendoza in the next six
months if it misses any debt service payments or there's more
evidence of such a scenario. We would also lower the ratings if the
administration formally presents an offer to private bondholders
because we would ordinarily consider this as a distressed debt
exchange, given the low rating on the entity and the clear signs of
cash constraints."

Upside scenario

S&P could raise the ratings in the next six months if the province
regains access to external sources of liquidity, and macroeconomic
and financial conditions in Argentina stabilize, with more clear
policy signals and execution from the national government.

Rationale

S&P said, "Our 'CCC-' ratings on Mendoza reflect our view that it's
facing a severe liquidity crunch, without access to funds to
service its debt while undergoing debt restructuring. The ratings
also incorporate the impact of COVID-19 on the provincial economy,
which has exacerbated the already considerable economic and social
strains in Argentina. In addition, the ratings signal to the
heightened uncertainty and liquidity pressures stemming from the
peso's depreciation. We also consider the sovereign could delay its
support to provinces, given its fiscal woes, and the underlying
volatile and unpredictable institutional framework under which
Argentine local and regional governments (LRGs) operate."

Mendoza is likely to undergo a distressed debt exchange, given its
tight liquidity crunch

The pandemic has ratcheted up pressure on the already weak
provincial finances, leading to a sharp decrease in tax collection
as the economy came to a halt and rising demands to raise spending
to contain the spread of the virus. As a result, Mendoza is facing
a severe liquidity crunch, lacking sufficient funding to service
its debt in time and in full, and even facing concerns over its
ability to fund the provincial payroll.

In response, the province announced it would seek to restructure
its debt with private bondholders, the government-owned bank, and
the federal government. Mendoza will undertake such negotiations in
parallel with the sovereign's debt restructuring, although S&P
foreseed them to occur separately. Given the clear signs of stress
and the potential loss in net present value for investors, it's
highly likely that it would consider any debt refinancing as a
distressed debt exchange, and tantamount to default.

S&P said, "We consider the administration's debt and liquidity
policy, together with its budgetary process, to have weakened over
the past few months. Lack of consensus in the local legislature has
led to delays in passing the 2020 budget, and inability to
implement borrowings approval, which has increased roll-over risk
in the short term.

"Our base-case scenario assumes that Mendoza will post an operating
deficit of 10% of operating revenue in 2020. We expect the deficit
only to gradually narrow in the next two years, as the economy will
slowly recover and financial uncertainty somewhat ease.
Nonetheless, we expect the province to post moderate deficits after
capex, of about 6% of total revenue, in the next two years. Given
lack of access to external financing, we expect accounts payables
to further increase in 2020.

"We also expect the province to continue to face substantial
budgetary constraints given its low revenue and expenditure
flexibility." Although Mendoza's tax rates slipped in recent years,
the current crisis leaves little space for tax hikes. Furthermore,
the provincial payroll and interest payments account for almost 60%
of annual operating expenditures. Mendoza has already slashes
capital expenditures, and we expect them to remain subdued in the
next two years.

Weaker fiscal results are substantially pressuring liquidity.
Mendoza's very low free cash reserves are not enough to cover its
debt service payments in the next two months. The province has to
make interest payments of about $25 million on a dollar-denominated
bond on May 19 and about ARP730 million on a peso-denominated bond
on June 9. Aside from these two payments, Mendoza's amortization
schedule is relatively smooth for the rest of the year and 2021,
although it becomes heftier starting in 2022, given that higher
dollar-denominated principal payments are due, such as the first
capital installment of $167 million on the 2024 external bond of
$500 million.

S&P said, "Public-sector debt refinancing in 2019 has helped
stabilize Mendoza's debt burden, which we expect to remain at about
58% of operating revenue in 2020, and only gradually decrease in
the next two years, assuming the lockout from capital markets.
Given the difficulties in accessing long-term borrowings, and
securing approval in the local legislature, we expect the
administration to cover its short-term financing gap through the
issuance of "Letras", for about ARP5.2 billion, and delay payments
to suppliers." The peso's steep depreciation has increased
Mendoza's debt exposure to foreign currency, with 60% of its debt
stock denominated in dollars. However, exchange rate risk is
mitigated by Mendoza's dollar-linked oil royalty income, which
should account for 6% of operating revenue in 2020.

Support from the federal government could be delayed given its own
severe fiscal strains

S&P said, "We estimate Mendoza's economic performance to be poor
this year. Provincial economy is sensitive to commodity price
swings, and we expect the weaker domestic demand to eat into
economic activity. We expect Argentina's GDP to contract 7% this
year as a result of COVID-19, and we foresee only a moderate
recovery in the coming years.

"We believe that, amid eroding macroeconomic conditions, the
sovereign could delay support measures to subnational governments,
especially given Argentina's history of major changes in economic
policy following shifts in political leadership. We assess the
institutional framework for Argentina's LRGs as very volatile and
underfunded, reflecting our perception of the sovereign's very weak
institutional predictability and volatile intergovernmental system
that has been subject to various modifications to fiscal
regulations, and lack of consistency over the years, which
jeopardize the LRGs' financial planning, and consequently, their
credit quality."

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

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

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

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

  Ratings List

  Downgraded  
                                  To             From
  Mendoza (Province of)
   Issuer Credit Rating   CCC-/Negative/--   B-/Negative/--

  Mendoza (Province of)
   Senior Unsecured       CCC-          B-




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B E R M U D A
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TEEKAY TANKERS: Egan-Jones Lowers Senior Unsec. Debt Ratings to B
-----------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Teekay Tankers Ltd to B from B+. EJR also downgraded
the rating on commercial paper issued by the Company to B from A3.

Headquartered in Hamilton, Bermuda, Teekay Tankers Ltd. provides
oil transportation services through a fleet of mid-size tankers,
including Suezmax and Aframax crude oil tankers and Long Range 2
product tankers.




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

BISCOITO GLOBO: Rio's Iconic Snack Food Closes Manufacturing Plant
------------------------------------------------------------------
Xiu Ying at Rio Times Online reports that the line of street
vendors that traditionally forms from 5 a.m. onwards in front of a
small building on Senado Street downtown, is now a thing of the
past -- at least for the time being.

With the social isolation measures implemented because of the
coronavirus pandemic, the 'Biscoito Globo' (Globo Biscuit) factory
is experiencing the greatest crisis of its 67 years of existence
and has closed its doors indefinitely, according to Rio Times
Online.

The company's flagship snack is the sold in paper packages, resold
on the streets and beaches. As no one is leaving their homes and
the beach is banned, the company founded in 1953 loses its largest
source of income and stops operating indefinitely, notes the
report.


COMPANHIA DE SANEAMENTO: Fitch Affirms 'BB' LT IDR, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed Companhia de Saneamento Basico do Estado
de Sao Paulo's Long-Term Foreign and Local Currency Issuer Default
Ratings at 'BB' and its National Long-Term Rating at 'AA(bra)'. The
Rating Outlook is Stable.

The rating action reflects Fitch's view that SABESP will be able to
sustain its robust cash flow from operations and strong financial
flexibility to manage its relevant debt maturities during the
following quarters, even during the coronavirus pandemic. The
company should keep its EBITDA margin in the 40%-45% range, which
is above the average of its industry peers, and low to moderate
leverage. SABESP's IDRs also incorporate its low business risk with
near-monopolistic position as provider of an essential utility
within its concession area, as well as the economies of scale
obtained as the largest basic sanitation company in the Americas by
number of customers.

Fitch views SABESP's expected negative FCF, due to its significant
capex plans, and material FX debt exposure as limiting rating
factors. The assessment also reflects SABESP's still-developing
regulatory environment, the intrinsic hydrological risk of its
business and the political risk associated with its position as a
state-owned company subject to potential changes in management and
strategy after each state of Sao Paulo government election.

Per Fitch's Government-Related Entity Criteria, Fitch assesses
SABESP on a standalone basis. This approach is supported by the
agency's perception of reduced incentive of SABESP's major
shareholder to provide company support if needed, given minimum
financial implications for the state of Sao Paulo if SABESP
defaults, and limited evidence of a track record or expectations
for the state providing support. SABESP's activities are
independent from its major shareholder both financially and
operationally. Fitch also considers the sociopolitical implications
for the state in the case of the company's default as moderate,
despite the strong assessment of its status, ownership and control
by the state of Sao Paulo.

The Stable Outlook reflects Fitch's expectation that the
water/wastewater industry will preserve solid fundamentals. SABESP
should experience a limited change in volumes billed and a
manageable higher delinquency ratio due to the coronavirus,
sustaining its strong credit metrics.

KEY RATING DRIVERS

Reduced Business Risk: SABESP's credit profile benefits from
resilient demand, even during a distressed economic environment,
which should mitigate the negative impact of the coronavirus
pandemic on its operations. The estimated moderately lower volume
billed to commercial and industrial clients will be compensated by
marginal growth from residential consumers, resulting on stable
volume in 2020. Fitch assumed volume billed will grow 4.3% in 2021.
The expected decrease on the average tariff, given lower tariffs
for residential customers, should be partially balanced by annual
tariff increases in line with inflation. SABESP's activity in the
state of Sao Paulo, which has the country's largest GDP and
population, is viewed as positive.

Capex Pressures FCF: Fitch considers SABESP's forecast pressured
FCF for the coming years as negative to the rating. The base case
scenario estimates an annual average negative FCF of BRL566 million
for the next three years. The negative BRL700 million in 2020
incorporates BRL3.2 billion in capex and dividends distribution of
BRL800 million. Positively, SABESP counts on sound estimated annual
CFFO average of BRL3.9 billion during 2020-2022 to alleviate FCF
pressure. Fitch estimates CFFO in 2020 at BRL3.3 billion,
reflecting a lower average tariff and higher working capital given
estimates of increased delinquency during the year.

Strong EBITDA Margins: SABESP's large scale of operations is one of
the pillars for the company to achieve EBITDA margins above its
state-owned peers in Brazil. Fitch believes EBITDA margin will
remain strong despite expected moderate reduction to 41% in 2020
from 45% in 2019. Fitch estimates SABESP's 2020 EBITDA at BRL5.6
billion, with an increase to BRL6.5 billion in 2021 given expected
rapid recovery to regular patterns after the end of restrictions on
the population's mobility due the pandemic. Tariff increases of
2.5% in 2020 and 3.5% in 2021 should also moderate EBITDA effects.

Low Leverage: Fitch estimates SABESP's net leverage will remain
below 2.5x over the next three years -- 2.3x in 2020, which is low
for the industry and for its IDRs -- supported by strong EBITDA
through the cycle and despite higher capex during this period. The
net debt-to-EBITDA ratio was 1.8x at the end of 2019. Negatively,
the company carries risks associated with its high percentage of
foreign-currency debt, given its strategy of accessing
international funding. The company may face cash flow effects due
to strong FX depreciation during significant foreign currency debt
maturing periods, which is the case in 2020.

Potential Regulatory Changes: Fitch incorporates no major impact on
SABESP's operations and cash flow generation in the case of
regulatory environment changes. Discussions about regulatory
environment guidelines for national water/wastewater should
facilitate greater participation of private players and enhance the
investment capacity of the industry. Private players account for
around 6% of the industry's market share. Fitch believes private
growth should occur mainly at highly inefficient state-owned
companies or local municipality operators, which is not the case
for SABESP.

DERIVATION SUMMARY

SABESP's mature operations and its position as the largest
water/wastewater utility in Brazil benefit its business profile in
terms of economies of scale and capital structure when compared
with Aegea Saneamento e Participacoes S.A. (LC and Foreign Currency
[FC] IDRs BB/Stable), which has moderate leverage, reflecting its
growth strategy. Aegea's credit profile nevertheless benefits from
its diversified concessions within Brazil, while SABESP operates
exclusively in the state of Sao Paulo, which concentrates
operational and regulatory risks. SABESP also carries relevant FX
debt exposure and political risk, given it is state owned. Both
SABESP and Aegea have similar and strong EBITDA margins.

Compared with power-transmission companies Transmissora Alianca de
Energia Eletrica S.A. (LC IDR BBB-/Stable and FC IDR BB/Stable) and
Alupar Investimento S.A. (LC IDR BBB-/Stable and FC IDR BB/Stable),
SABESP presents less predictable CFFO, higher regulatory risk and
higher FX exposure. Those factors explain the difference on the LC
IDRs, despite SABESP's expected lower leverage metrics.

KEY ASSUMPTIONS

  -- Stable volume billed in 2020 and total annual average growth
of 3.2% in the next three years, supported by expected population
and connection growth, and stable consumption per connection;

  -- Annual tariff increases of 2.5% in July 2020, as approved by
the regulator, and 3.5% in the following years, in accordance with
Fitch's expected inflation rate and adjusted by a efficiency factor
(called X factor) of 0.69%;

  -- Average annual capex of BRL3.8 billion in 2020-2022;

  -- Dividend of BRL800 million in 2020 and payout ratio of 27.9%
of net profits thereafter.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

  -- Sustainable positive FCF generation;

  -- Lower FX debt exposure.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

  -- EBITDA margins below 33%;

  -- Net leverage above 3.5x on a sustainable basis;

  -- Fitch's perception of higher political risk;

  -- Lower financial flexibility.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Strong Financial Flexibility: SABESP's robust cash position and
proven financial flexibility will be crucial for the company to
manage its expected negative FCF and high level of debt maturity in
2020. The company's available free receivables (estimated at around
BRL600 million monthly, or approximately 65% of total receivables)
add to its capacity to raise funding.

SABESP's cash and equivalents of BRL2.3 billion at the end of 2019
covered only 0.8x its short-term debt of BRL2.9 billion, with this
debt increasing to around BRL3.5 billion due to recent sharp FX
devaluation. Its relevant short-term debt includes the USD350
million bonds that mature in December 2020. The company issued
BRL1.5 billion in local on debenture in April 2020 and expects to
disburse around BRL1.0 billion of funding during 2020, which was
already approved to partially support its capex in the same
period.

SABESP's total debt of BRL13.2 billion by the end of 2019 consisted
mainly of multilateral agency loans (BRL5.8 billion), debenture
issuances (BRL3.6 billion) and bonds (BRL1.4 billion). BRL6.4
billion, or 48% of its total debt, was linked with FX variation
without any hedge protection. Only BRL2.6 billion of the company's
total debt at the end of 2019 was secured by future flow of
receivables linked with Banco Nacional de Desenvolvimento Economico
e Social (BNDES) and Caixa Economica Federal loans, which do not
pressure unsecured rated issuances.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.

ESG CONSIDERATIONS

The highest level of ESG credit relevance, if present, is a score
of 3. This means ESG issues are credit-neutral or have only a
minimal credit impact on the entity(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).

CONCESSIONARIA DE RODOVIAS: Moody's Rates BRL430MM Debt Issue Ba2
-----------------------------------------------------------------
Moody's America Latina Ltda. assigned Ba2/Aa2.br to Concessionaria
de Rodovias Integradas do Oeste S.A.'s new debenture issuance of
BRL430 million (8th issuance) due in 2023. The outlook is stable.

SPVias issued its 8th debentures, backed (conditionally by CCR S.A.
- Ba2, stable) senior unsecured non-convertible in one series
totaling BRL430 million. The proceeds will be used to pay the
maturing portion of the 4th debenture issuance (April 15th) and
strengthen cash liquidity. The 8th debentures will have a 3-year
tenor from the issuance date, with customized principal payment
starting October 2021 and interest paid semi-annually from October
2020 onward.

The debentures are backed by a conditional corporate guarantee from
CCR automatically implemented in the scenario of an unfavorable
decision in the current lawsuit filed by the regulator ARTESP
regarding the concession life extension granted in 2006, in case it
ends before the debentures are fully paid. The debentures have
cross default provisions with other outstanding debt from the
company as well with CCR in case the guarantee is in place.

RATINGS RATIONALE

The ratings reflect SPVias' strong asset located in an important
region in Brazil with a very high concentration in agribusiness
(mainly livestock, sugar cane and ethanol production), spread
across 26 municipalities in the State of Sao Paulo (Ba2 stable).
The ratings are supported by adequate credit metrics for its rating
category, driven by a relatively stable and predictable cash flow
with lower future capital spending needs.

Moody's views the ratings of SPVias linked to those of CCR, its
ultimate parent, due to the existence of automatic early
amortization clauses embedded in SPVia's 6th and 7th debenture
issuances in case of bankruptcy of the guarantor, connecting the
credit profile of CCR, as the guarantor of the debentures. An
increased level of investment activity of its controlling
shareholder, CCR, could further strain re-leveraging at SPVias to
sustain a high level of dividend payout. Nevertheless, Moody's
expects SPVias to prudently manage its dividend distribution to
maintain adequate credit metrics.

SPVias' ratings are constrained by Brazil's (Government of Brazil,
Ba2 stable) rating, given the company's local operational profile
and regulated nature. The uncertainty about the 2006 contract
amendment and the potential outcome of the judicial dispute weigh
on the company's ratings. Also, Moody's sees negative pressure in
traffic volumes for the next 12-18 months due to the COVID 19
outbreak and its effects in activity as the Brazilian economy goes
into recession. There is significant downside risk to its revised
forecast if lockdowns are prolonged, which would further limit
traffic volumes. Other factors related to the economic downturn
that could also pressure traffic performance include rising
unemployment and the failure of government measures to boost
consumer confidence. Nonetheless, Moody's considers SPVias' cash
generation and liquidity cushion are so far adequate under this
downturn scenario, and that management could retain dividends as an
additional source of liquidity if needed as also maintain sound and
timely access to the debt markets in order to meet its refinancing
needs specially in the second half of 2021.

The stable outlook takes into consideration the company will
prudently manage its leverage in line with the current credit
quality and maintain discipline in its financial policy. Also, the
outlook reflects its expectation that DSCR will return to a level
of at least 1.4x in the medium-term, after a decline due to the
COVID 19 impact.

The stable outlook on SPVias' ratings reflects the existence of
automatic early amortization clauses embedded in its 6th and 7th
debenture issuances, which are associated with the credit profile
of CCR as the guarantor of the debentures. As such, it views the
ratings of SPVias as directly linked with those of CCR. The stable
outlook reflects its expectation that credit metrics will remain
strong, with adequate liquidity to support investment requirements
and debt service. The leniency agreements performed with the State
of Parana and Sao Paulo reduce, but do not eliminate, the chances
of potential future investigations, which, while unexpected, could
have material adverse consequences for CCR's credit profile.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

The ratings could be upgraded if SPVias demonstrates sustained
better-than-expected operational performance. Nonetheless, the
company's ratings are constrained by Brazil's sovereign rating.
Also, SPVias' credit quality is linked to that of CCR due to cross
default provisions.

On the other hand, a deterioration in the sovereign's credit
quality, as well as well as a downgrade of CCR's rating could exert
downward pressure on SPVias' ratings. In addition, the ratings
could be downgraded if traffic performance remains below its
expectations and if it perceives higher liquidity risk combined
with more restrictive access to the debt markets. Also, downward
pressure could arise from a significant and sustained downturn in
the company's credit metrics, such that:

  - Funds from operations/debt falls below 10.0% (18.7% as of
December 2019)

  - DSCR ratio stays below 1.2x (1.2x as of December 2019) for an
extended period.

A deterioration in the concession and regulatory framework of the
State of Sao Paulo or political interference in the normal course
of business could also exert downward pressure on SPVias' ratings.
A negative outcome of the ongoing judicial dispute with ARTESP
could also weigh on the company's ratings.

Concessionaria de Rodovias Integradas do Oeste S.A. holds a 28-year
concession granted in 2000 to operate and maintain the
516-kilometer Castello Branco-Raposo Tavares road system, as well
as the Joao Mellao, Antonio Romano Schincariol and Francisco Alves
Negrao roads, connecting the city of Sao Paulo to the southwestern
region of the state, and to the states of Mato Grosso do Sul and
Parana. SPVias' concession was acquired by CCR in 2010 and accounts
for about 7% of the company's consolidated toll revenue and 8% of
the EBITDA.

EMBRAER SA: Fitch Cuts LT IDR to BB+, Outlook Now Negative
----------------------------------------------------------
Fitch Ratings has downgraded Embraer S.A.'s Long-Term Foreign- and
Local-Currency Issuer Default Rating to 'BB+' from 'BBB-', and has
affirmed Embraer's National Scale Rating at 'AAA(bra)'. The Rating
Watch Negative has been removed. The Rating Outlook for the IDRs is
Negative. Embraer's unsecured bonds have been removed from Rating
Watch Positive and downgraded to 'BB+' from 'BBB-'. The bonds had
been on Positive Watch pending the establishment of a commercial
joint venture with The Boeing Company (BBB/Negative).

The rating actions reflect the strong headwinds for the commercial
aviation industry due to the coronavirus pandemic, which has
resulted in a high level of aircraft deferrals, lower maintenance
expenditures, and strong competition in commercial and business jet
market. Fitch believes this environment will lead to deterioration
in Embraer's FCF generation and credit metrics during 2020-2022.
The cancelation of a deal with Boeing poses additional challenges
to Embraer's medium to long-term competitive position, although it
does open the possibility of arrangements with other aviation
companies. Embraer reported USD121 million of separation costs
related to the proposed JV during 2019. Fitch's base case scenario
does not include any reimbursement, given the ongoing discussion
between the parties and uncertainty regarding the timing of this
potential cash inflow.

The Negative Rating Outlook is driven by the high uncertainties
surrounding the aviation industry and the risk of a continuation of
distancing measures into the latter half of 2020 and early 2021.
Embraer's ability to quickly adjust its operations and cost
structure will be key to minimizing the high cash burn, which Fitch
projects to be around USD1 billion. Embraer's lack of major debt
amortization during 2020 and 2021 and strong liquidity position and
access to credit markets in Brazil and abroad, are key credit
strengths. Fitch's base case scenario foresees Embraer's net
leverage moving to around 11.0x and 4.0x, during 2020 and 2021,
respectively.

Embraer's ratings reflect its competitive positions in the
commercial and business jet markets, robust backlog (USD16.8
billion) covering several years of sales, and Brazilian defense
programs. Embraer's solid liquidity profile (mostly held outside
Brazil) and its large export revenues combined with some offshore
operating cash flow further support its 'BB+' ratings, which is
above Brazil's 'BB' country ceiling. Rating concerns include
ongoing new aircraft development programs, including the transition
to the E2 aircraft, and the impact on orders and backlogs in the
long term, significant competition in both the commercial and
business jet markets, new entrants into the commercial jet market,
and low operating margins in several business segments.

KEY RATING DRIVERS

Elevated Pressure: Amid the current scenario, with increasing level
of aircraft deferrals, Fitch expects a 50% decline in commercial
aircraft deliveries for 2020 and some recovery during 2021. For
business jet deliveries, the decline should be lower, around
15%-20%, given different business dynamics. Fitch expects that
Embraer will face additional challenges to boost the orders of its
new E2 aircraft. The firm order backlog stood at 338 aircraft at
the end of 4Q19, down from 435 planes two years ago. In Fitch's
view, the backlog supports production for the next several years,
but suffers from concentration and quality. Fitch notes that the
E175-E2 is currently too heavy to meet existing scope clauses in
the U.S. market; the scope clauses must be renegotiated for this
aircraft to be viable or orders will need to be converted to the
E1.

Modest Brazilian Risk: Approximately 90% of Embraer's revenue is
generated from exports or from business operations based abroad.
Nonetheless, Brazil's economic and political environment is a
concern as the majority of Embraer's operating asset base is
locally domiciled. Brazil is listed as a related party in Embraer's
SEC filings as a result of the Brazilian government's "golden
share" and a direct shareholder stake (approximately 5% of Embraer)
via a company controlled by the government.

Fitch does not consider Brazil's country ceiling a rating
constraint for Embraer currently, given the company's large cash
holding outside of Brazil, as well as its heavy focus on exports
and growing business outside of Brazil. Based on these factors,
under Fitch's criteria, Embraer could be rated up to three notches
higher than the Brazilian country ceiling.

EBIT Margin Pressured: Embraer's operating performance has been
weaker than expected during the past year and should trend slightly
negative during 2020. Embraer was facing pressures on its operating
margins as it navigates several new development programs. The lower
deliveries in commercial aviation and less favorable mix have
affected the company's fixed cost dilution during 2019. In a
scenario of meaningful aircraft deferrals, operating margins will
be further pressured. During 2020, Fitch estimates Embraer's EBIT
margin to be negative, around 1%, and will show recovery during
2021 and 2022, increasing to 4.6% and 5.8%, respectively.

Negative FCF: The poor operating cash flow generation and the
ongoing capex should lead Embraer to burn around USD1 billion in
cash during 2020, per Fitch's estimates. Under Fitch's base case
scenario, Embraer's cash flow from operations for 2020 is expected
to be negative by more than USD500 million, pressured by a decline
in deliveries and working capital needs. Capex is estimated around
USD400 million. For 2021, FCF is expected to be breakeven level,
around USD71 million, after capex of USD450 million.

High Leverage: Fitch forecasts Embraer's net leverage (net
Debt/EBITDA) to increase to 11.0x in 2020, to decline to 4.2x in
2021 and to 3.8x during 2022. This compares to 2.0x in 2018 and an
average of 1.0x during the 2015-2017 period.

DERIVATION SUMMARY

Embraer is one the market leaders for commercial jets with fewer
than 150 seats. Its aircraft are known for their engineering,
commonality across models and interior design. The company had 338
firm jet orders in backlog at the end of Dec. 31, 2019, including
jets in the new E2 family. Embraer's total backlog, including
contracts from all segments, was USD16.8 billion at Dec. 31, 2019.
Embraer's weaker competitive position compared with major global
peers, notably Boeing and Airbus, based on scale and financial
strength, is partially offset by its good business position in the
niche of commercial jets with fewer than 150 seats, and its
manageable financial profile.

Embraer compares favorably versus its competitor Bombardier Inc. in
leverage, margins and liquidity; however, Bombardier has more
business diversification. The company also operates in the
executive jet and defense segments. Embraer's bulk of operations
are in Brazil, but the company is shifting much of its executive
jet assembly to the U.S. Fitch's rating above country-ceiling
methodology is being applied.

KEY ASSUMPTIONS

  -- Embraer's key development programs, the E190-E2 and KC-390,
remain on time and budget;

  -- Embraer's commercial deliveries decline to approximately 50%
in 2020 and 20% (versus 2019) in 2021 but stabilize or begin to
rise in 2022;

  -- The business jet market deliveries decline 20% in 2020 and 15%
(versus 2019) in 2021, following a more resilient trend for this
segment;

  -- EBIT margin to be in the negative territory during 2020
(around 1.3%) and then slightly recover during 2021 and 2022;

  -- Embraer to generate negative USD1 billion in FCF in 2020;

  -- Investment expenditures are around USD400 million in 2020 and
2021;

  -- The company is able to raise around USD1 billion in new
long-term debt to fund negative free cash flow generation during
2020 at attractive financial costs;

  -- Embraer maintains strong liquidity throughout the forecast
period.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

  -- A revision of the Outlook to Stable could occur if Embraer's
performance during 2020 and mid-2021 leads to net leverage of
around 3.5x during 2021;

  -- An upgrade to investment grade level would is dependent on a
return to net leverage below 2.5x on sustainable basis, in addition
to maintenance of a strong liquidity position with no major
refinancing risks in the medium term;

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

  -- Substantial order cancellations in the E1 and E2 programs and
business jet segment;

  -- Significant delays and cost increases on the E2, KC-390 or
other programs;

  -- Failure to sufficiently reduce costs and post larger than
expected FCF generation;

  -- Net leverage remaining consistently above 3.5x by end of
2021;

  -- Substantial declines in liquidity without commensurate debt
reductions;

  -- Multiple notch downgrade of Brazil's sovereign rating, along
with a similar reduction in the country ceiling.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Strong Liquidity: Fitch views Embraer's financial flexibility as
relatively conservative given its liquidity position, which is a
key factor supporting the ratings. Embraer has a policy of
maintaining healthy liquidity, which Fitch considers appropriate
given the cost of periodic development programs and the nature of
the commercial aerospace industry. Fitch expects that the company
will remain disciplined with its liquidity position and will
maintain its proactive approach in liability management to avoid
exposure to refinancing risks. Embraer does not have a revolving
credit facility, which is not uncommon for Latin American corporate
issuers.

Embraer had USD3.4 billion of debt as of Dec 31, 2019, which
includes net position of USD271 million of debt at the SPE's level
and USD282 million of sales financing guarantees (guarantee
deposits). Total cash and investments at the end of the period were
USD2.7 billion, which is sufficient to support debt amortization up
to at least 2023. The bulk of Embraer's debt matures beyond 2023.
At Dec. 31, 2019, approximately 86% of the company's cash,
equivalents and financial investments were in U.S. dollars.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.

ESG CONSIDERATIONS

The highest level of ESG credit relevance, if present, is a score
of 3. This means ESG issues are credit-neutral or have only a
minimal credit impact on the entity(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).

OMEGA ENERGIA: Moody's Withdraws Ba2 Rating due to Business Reason
------------------------------------------------------------------
Moody's America Latina has withdrawn the Ba2/Aa1.br senior secured
ratings of Omega Energia e Implantacao 2 S.A. Prior to the
withdrawal, the outlook was stable.

The following ratings were withdrawn:

Issuer: Omega Energia e Implantacao 2 S.A.

Senior Secured Ratings: Ba2 (Global Scale Rating), Aa1.br (National
Scale Rating)

RATINGS RATIONALE

Moody's has decided to withdraw the ratings for its own business
reasons.

The last rating action on Delta 3 was taken on April 2018, when
Moody's affirmed the Ba2 global scale rating and Aa1.br national
scale rating. The outlook was revised to stable from negative.

The issuer is a non-operational subholding company owner of 8 SPVs
authorized by Aneel/Ministry of Energy and Mining to operate as
wind farm energy producers, forming the Delta 3 wind complex. The
project is located in the cities of Barreirinhas and Paulino Neves,
in the State of Maranhao and has total installed capacity of 221
MW, composed of 96 wind turbine generators (WTGs) supplied by GE
Water and Process Technologies do Brasil Ltda. (GE Brazil) of 2.3
MW (Model 2.3-116) each. The project is sponsored by Omega Geracao
S.A, with operations in the hydro, wind and solar sectors in
Brazil.

PETROBRAS: ANP Says Refineries Recorded Sharp Drop in Production
----------------------------------------------------------------
Richard Mann at Rio Times Online reports that the sudden drop in
demand for fuels prompted a sharp reduction in the utilization
factor of Petroleo Brasileiro S.A. or Petrobras' refineries, which
are now prioritizing the production of Liquefied Petroleum Gas
(LPG) to supply the domestic market, in addition to importing the
raw material, said the director of the National Petroleum, Natural
Gas and Biofuels Agency (ANP), Felipe Kury.

Failing to mention the extent of the drop in refineries, Kury
repeated data earlier confirmed by the president of the state-owned
company, Roberto Castello Branco, of sharp slumps in consumption of
aviation kerosene (84 percent) and gasoline (35 percent), according
to Rio Times Online.


                      About Petrobras

Petroleo Brasileiro S.A. or Petrobras (in English, Brazilian
Petroleum Corporation - Petrobras) is a semi-public Brazilian
multinational corporation in the petroleum industry headquartered
in Rio de Janeiro, Brazil.  Petrobras control significant oil and
energy assets in 16 countries in Africa, the Americas, Europe and
Asia.  But, Brazil represents majority of its production.

The Brazilian government directly owns 54% of Petrobras' common
shares with voting rights, while the Brazilian Development Bank
and
Brazil's Sovereign Wealth Fund (Fundo Soberano) each control 5%,
bringing the State's direct and indirect ownership to 64%.

A corruption scandal was uncovered in 2014 that involved
Petrobras.
The scandal related to money laundering that involved Petrobras
executives.  The executives were alleged to get received kickbacks
from overpriced contracts, to the tune of about $3 billion in
total.

As reported in the Troubled Company Reporter-Latin America on April
24, 2020, S&P Global Ratings on April 17, 2020, affirmed its 'BB-'
global scale and 'brAAA' national scale ratings on Brazil-based
integrated
oil and gas company Petroleo Brasileiro S.A. - Petrobras. The
stable outlook incorporates S&P's view that the company's leverage
will peak this year, but cash flows and credit metrics would
rebound considerably in 2021.

USIMINAS INT'L: Moody's Affirms Ba3 $750M Notes Rating, Outlook Neg
-------------------------------------------------------------------
Moody's Investors Service affirmed the Ba3 rating of the $750
million senior unsecured notes due 2026 issued by Usiminas
International S.a r.l. and unconditionally guaranteed by Usinas
Siderurgicas de Minas Gerais S.A. ("Usiminas", Ba3 negative). The
outlook for the rating was changed to negative from stable.

At the same time, Moody's America Latina Ltda. affirmed Usiminas'
corporate family ratings at Ba3 (global scale) and A2.br (national
scale) and changed the outlook for the ratings to negative from
stable.

Ratings affirmed:

Issuer: Usiminas International S.a r.l.

- $750 million gtd senior unsecured notes due 2026: Ba3 (global
scale)

Outlook changed to negative from stable.

RATINGS RATIONALE

The change in outlook to negative reflects its expectation that
Usiminas' credit metrics will deteriorate materially throughout
2020 as a consequence of the steep decline in steel demand in
Brazil, particularly in Usiminas' key automotive and capital goods
end-markets following the coronavirus outbreak.

The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented. The steel sector
has been affected by the shock given its sensitivity to demand and
sentiment. Moody's regards the coronavirus outbreak as a social
risk under its ESG framework, given the substantial implications
for public health and safety.

The affirmation of Usiminas' Ba3/A2.br ratings reflects the
company's solid position in the Brazilian flat-steel market and the
measures taken to adjust operations to the feeble demand in the
domestic market. The shutdown of the Cubatão steel mill and of two
blast furnaces at the Ipatinga mills will significantly reduce
Usiminas' cost structure and production capacity, providing
flexibility to the company amid the deterioration of the steel
market in Brazil. The ratings are also supported by Usiminas'
adequate credit metrics and liquidity and enhanced financial
flexibility to withstand the volatility in its main end-markets.
Even though credit metrics will be strained in 2020, Moody's
believes Usiminas will be able to pull levers to prevent cash burn
and maintain covenant compliance, thus reducing potential liquidity
risks coming from a tougher operating environment.

The ratings are mainly constrained by Usiminas' exposure to the
volatility of the automotive industry in Brazil, given its
concentration in flat steel production in the country. Usiminas'
current concentration of operations in a single mill introduces
event risks and is an additional negative credit consideration,
although Moody's recognizes that the downsizing provides Usiminas
with flexibility.

To respond to the steep decline in demand for flat steel in Brazil,
Usiminas has suspended its operations at the Cubatão mill and
halted two blast furnaces and a steelworks area at the Ipatinga
mill. These assets collectively account for 30% of Usiminas'
nominal crude steel production capacity (or 3 million tons of
annual production capacity) and will significantly reduce the
company's fixed cost base amid the lower demand environment in
Brazil. Moody's expects Brazil's steel demand to decline by more
than 20% in 2020 with further risk to the downside, and Usiminas'
main markets such as automotive, capital and durable goods will be
the most affected considering the current lockdown and consumption
patterns. Considering a 20% decline in steel sales volumes in 2020
and a similar decline in Usiminas' EBITDA, the company's adjusted
gross leverage would already rise to 4x at the end of 2020 from
3.1x a year earlier. Adding the depreciation of the Brazilian real
and its impact in the company's dollar-denominated debt (about 60%
of total), the deterioration in metrics could be even more severe,
even as the company's iron ore operations remain strong.

Still, despite the risks associated with the coronavirus outbreak
and the strain in credit metrics, Usiminas has an adequate
liquidity position and significant cushion under financial
covenants, which provides it with flexibility to withstand short
term shocks. Usiminas had a BRL1.9 billion cash position at the end
of 2019 (of which BRL902 million is available at the parent level),
and virtually no maturities until the end of 2022. The company also
has flexibility to reduce capex and dividends payments to the
minimum required by law to adjust its cash outflows to the lower
demand environment. In addition to the adjustments in its cost
base, the company already cut investments for the year to BRL600
million from previously announced BRL 1 billion and is currently
benefiting from high iron ore prices and the depreciation of the
local currency to generate cash from its mining operations. In its
view, Usiminas' quick response to the current crisis shows its
commitment to a certain degree of financial discipline, and provide
us comfort that the company will continue to pull levers to prevent
cash burn, thus reducing liquidity and covenant breach risks.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING

The ratings could be downgraded if performance over the near term
materially deteriorates, with leverage increasing to 4.0x and
EBIT/interest declining to levels below 2.0x without prospects for
improvement. The ratings could also be downgraded if liquidity
contract meaningfully or if market conditions deteriorate.

The ratings could be upgraded if Usiminas is able to improve its
operating performance sustainably along with market fundamentals,
with stronger EBIT margin, adjusted leverage trending below 2.5x
and interest coverage of at least 3.0x (EBIT/Interest Expense) all
on a sustained basis. Further improvement in liquidity and cash
flow generation that provides Usiminas more cushion to withstand
the volatility of its end-markets would also be required for an
upgrade.

Headquartered in Belo Horizonte, Minas Gerais, Usiminas is the
largest integrated flat-steel manufacturer in Latin America, with
production of 3.3 million tons of crude steel and 4.1 million tons
of rolling steel, and consolidated net revenue of BRL14.9 billion
(around $3.8 billion converted using the average exchange rate) in
2019. Usiminas also owns iron ore mining properties, steel
distribution and capital goods subsidiaries in Brazil.

USIMINAS SIDERURGICAS: Moody's Affirms Ba3 CFR, Outlook Now Neg.
----------------------------------------------------------------
Moody's America Latina Ltda. affirmed Usiminas Siderurgicas de
Minas Gerais S.A.'s Ba3 (global scale) and A2.br (national scale)
corporate family ratings. The outlook for the ratings was changed
to negative from stable.

Ratings affirmed:

Issuer: Usiminas Siderurgicas de Minas Gerais S.A.

- Corporate Family Rating: Ba3 (global scale) / A2.br (national
scale).

Outlook changed to negative from stable

RATINGS RATIONALE

The change in outlook to negative reflects its expectation that
Usiminas' credit metrics will deteriorate materially throughout
2020 as a consequence of the steep decline in steel demand in
Brazil, particularly in Usiminas' key automotive and capital goods
end-markets following the coronavirus outbreak.

The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented. The steel sector
has been affected by the shock given its sensitivity to demand and
sentiment. Moody's regards the coronavirus outbreak as a social
risk under its ESG framework, given the substantial implications
for public health and safety.

The affirmation of Usiminas' Ba3/A2.br ratings reflects the
company's solid position in the Brazilian flat-steel market and the
measures taken to adjust operations to the feeble demand in the
domestic market. The shutdown of the Cubatão steel mill and of two
blast furnaces at the Ipatinga mills significantly reduce Usiminas'
cost structure and production capacity, providing flexibility to
the company amid the deterioration of the steel market in Brazil.
The ratings are also supported by Usiminas' adequate credit metrics
and liquidity and enhanced financial flexibility to withstand the
volatility in its main end-markets. Even though credit metrics will
be strained in 2020, Moody's believes Usiminas will be able to pull
levers to prevent cash burn and maintain covenant compliance, thus
reducing potential liquidity risks coming from a tougher operating
environment.

The ratings are mainly constrained by Usiminas' exposure to the
volatility of the automotive industry in Brazil, given its
concentration in flat steel production in the country. Usiminas'
current concentration of operations in a single mill introduces
event risks and is an additional negative credit consideration,
although Moody's recognizes that the downsizing provides Usiminas
with flexibility.

To respond to the steep decline in demand for flat steel in Brazil,
Usiminas has suspended its operations at the Cubatão mill and
halted two blast furnaces and a steelworks area at the Ipatinga
mill. These assets collectively account for 30% of Usiminas'
nominal crude steel production capacity (or 3 million tons of
annual production capacity) and will significantly reduce the
company's fixed cost base amid the lower demand environment in
Brazil. Moody's expects Brazil's steel demand to decline by more
than 20% in 2020 with further risk to downside, and Usiminas' main
markets such as automotive, capital and durable goods will be the
most affected considering the current lockdown and consumption
patterns. Considering a 20% decline in steel sales volumes in 2020
and a similar decline in Usiminas' EBITDA, the company's adjusted
gross leverage would already rise to 4.0x at the end of 2020 from
3.1x a year earlier. Adding the depreciation of the Brazilian real
and its impact in the company's dollar-denominated debt (about 60%
of total), the deterioration in metrics could be even more severe,
even as the company's iron ore operations remain strong.

Still, despite the risks associated with the coronavirus outbreak
and the strain in credit metrics, Usiminas has an adequate
liquidity position and significant cushion under financial
covenants, which provides it with flexibility to withstand short
term shocks. Usiminas had a BRL1.9 billion cash position at the end
of 2019 (of which BRL902 million is available at the parent level),
and virtually no maturities until the end of 2022. The company also
has flexibility to reduce capex and dividends payments to the
minimum required by law to adjust its cash outflows to the lower
demand environment. In addition to the adjustments in its cost
base, the company already cut investments for the year to BRL600
million from previously announced BRL 1 billion and is currently
benefiting from high iron ore prices and the depreciation of the
local currency to generate cash from its mining operations. In its
view, Usiminas' quick response to the current crisis shows its
commitment to a certain degree of financial discipline, and provide
us comfort that the company will continue to pull levers to prevent
cash burn, thus reducing liquidity and covenant breach risks.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

The ratings could be downgraded if performance over the near term
materially deteriorates, with leverage increasing to 4.0x and
EBIT/interest declining to levels below 2.0x without prospects for
improvement. The ratings could also be downgraded if liquidity
contract meaningfully or if market conditions deteriorate.

The ratings could be upgraded if Usiminas is able to improve its
operating performance sustainably along with market fundamentals,
with stronger EBIT margin, adjusted leverage trending below 2.5x
and interest coverage of at least 3.0x (EBIT/Interest Expense) all
on a sustained basis. Further improvement in liquidity and cash
flow generation that provides Usiminas more cushion to withstand
the volatility of its end-markets would also be required for an
upgrade.

Headquartered in Belo Horizonte, Minas Gerais, Usiminas is the
largest integrated flat-steel manufacturer in Latin America, with
production of 3.3 million tons of crude steel and 4.1 million tons
of rolling steel, and consolidated net revenue of BRL14.9 billion
(around $3.8 billion converted using the average exchange rate) in
2019. Usiminas also owns iron ore mining properties, steel
distribution and capital goods subsidiaries in Brazil.



=========
C H I L E
=========

CAP SA: S&P Affirms 'BB+' Issuer Credit Rating
----------------------------------------------
On April 28, 2020, S&P Global Ratings affirmed the global scale
'BB+' issuer credit and issue-level ratings on Chilean mining
company CAP S.A.

S&P said, "Our updated financial model incorporates the price deck,
which we published on March 16, 2020, and current steel prices. We
now expect CAP's net debt to EBITDA around 1.7x and free operating
cash flow to debt around 10% for 2020 and 2021, compared with our
previous forecast of around 1.3x and 25%, respectively. This is
mostly a result of the iron ore at $75 per ton in 2020, compared
with our previous assumption of $80 per ton and $70 per ton in
2021. At the same time, we have revised downward our assumptions
for capital expenditures to $180 million from $240 million, given
that some projects will be delayed amid lower volumes stemming from
a plunging demand caused by coronavirus."

As a result of the Nov. 22, 2018, fatal accident at the Guacolda 2
port, CAP's pellets output plummeted last year. The company's
logistics costs increased, volumes dropped 37% compared with 2018
to only 9.2 million tons, and leverage metric skyrocketed towards
4.2x in 2019. Moreover, the 40 cubic meter spillage of hydrocarbons
at the Guarello Island on July 27, 2019, increased concerns over
management's capabilities to map and control risk exposures in
place to ensure appropriate safety measures and avoid future
incidents.




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

DOMINICAN REPUBLIC: 1st Stage of Economic Opening Set for May 11
----------------------------------------------------------------
Dominican Today reports that Economy Ministry officials have been
meeting with various productive sectors to socialize their plans
for the gradual opening of economic activities disrupted by
COVID-19.

Diario Libre reported the details of the opening plan of five
phases, according to Dominican Today.

According to sources, the plan would be officially announced soon,
the report relays.

The first stage would begin on May 11 with the opening of vehicle
dealers, auto repair shops and small businesses, the report notes.

                    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.

On April 16, 2020, S&P Global Ratings revised its outlook on the
long-term ratings on the Dominican Republic to negative from
stable. At the same time, S&P affirmed its 'BB-/B' long- and
short-term foreign and local currency sovereign credit ratings.
The transfer and convertibility (T&C) assessment is unchanged at
'BB+'.

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: March Prices Fell -0.52%, Paced by Transport
----------------------------------------------------------------
Dominican Today reports that the Dominican Republic Central Bank
said prices fell -0.52% in March compared to the previous month,
with accumulated inflation in the first quarter at -0.32%.

"With this result, year-on-year inflation measured from March 2019
to March 2020 reached 2.45%, reaching below the lower limit of the
target range of 4.0% ± 1.0%," the Central Bank said on its
website, according to Dominican Today.

It adds that the groups Transport (-2.44 %) and housing (-0.12 %)
exerted the most influenced March prices, Dominican Today notes.

                    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: Poised to Open More Businesses, Gradually
-------------------------------------------------------------
Dominican Today reports Economy Minister Juan Ariel Jimenez, said
the Government is preparing to authorize the opening of other
businesses gradually to stimulate the economy, given the measures
to halt the pandemic.

In a press release, the official said that that's what the Ministry
of Health is working on, since this will depend on the number of
cases of COVID-19 infection, according to Dominican Today.

Jimenez said that although this is being worked on, even the
government doesn't have a date to order the opening of those
businesses such as hardware stores, auto parts, and others that
remain closed due to the national emergency, the report relays.

                    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.

On April 16, 2020, S&P Global Ratings revised its outlook on the
long-term ratings on the Dominican Republic to negative from
stable. At the same time, S&P affirmed its 'BB-/B' long- and
short-term foreign and local currency sovereign credit ratings.
The transfer and convertibility (T&C) assessment is unchanged at
'BB+'.

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).



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

GRUPO POSADAS: Moody's Cuts CFR & Sr. Unsec. Notes Rating to Caa1
-----------------------------------------------------------------
Moody's Investors Service has downgraded Grupo Posadas, S.A.B. de
C.V.'s corporate family rating and the senior unsecured rating on
its 2022 notes to Caa1 from B2. The outlook was changed to
negative. The action follows the rapid deterioration of its
operating performance during the sanitary emergency in Mexico as a
consequence of the coronavirus outbreak and considers the
refinancing risk related to Posadas' 2022 notes, with tightening
capital markets conditions and the high likelihood of a distressed
exchange. This action concludes the review for downgrade that was
initiated on March 6, 2020.

RATINGS RATIONALE

The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented. The lodging sector
has been one of the sectors most significantly affected by the
shock given its exposure to travel restrictions and sensitivity to
consumer demand and sentiment. Its action reflects the impact on
Posadas of the breadth and severity of the shock, and the broad
deterioration in credit quality it has triggered. Moody's regards
the coronavirus outbreak as a social risk under its ESG framework,
given the substantial implications for public health and safety.

The downgrade also reflects its view that there is a high
likelihood of a distressed exchange in light of the sharp
deterioration in Posadas' operating performance, coupled with its
need to refinance its 2022 notes amid tightening capital markets
conditions.

On April 10, 2020 Posadas announced that in line with the measures
taken by the Mexican authorities to face the coronavirus outbreak
amid the declaration of sanitary emergency state, it has suspended
activities in virtually all the properties under its management.
Also since then, bookings for stays during the lockdown have been
suspended. Originally, the period was expected to conclude on 30
April but has recently been extended through the end of May.
Posadas could resume its operations in the second half of 2020. The
company has reported that, while cancellations for stays through
the second quarter of 2020 have been historically high, there have
not yet been meaningful group cancellations related to the
coronavirus outbreak for 2021, and many group customers are at
least rebooking for 2021. However, there are high risks of more
challenging downside scenarios as the situation is fluid and the
severity and duration of the pandemic and travel restrictions are
still uncertain.

Posadas' liquidity is tempered by the need to refinance its 2022
notes amid a challenging environment. The bulk of Posadas' debt is
$393 million outstanding under senior notes maturing in June 2022.
As of March 23, 2020, Posadas had MXN1.6 billion of cash on hand,
out of which some MXN1.2 billion or $51 million is denominated in
US dollar, representing 75% of total cash. Moody's expects that
current cash will be enough to cover short term needs including
lease commitments of MXN750 million, interest expense amounting $30
million (MXN615 million) and maintenance capex. However, the MXN1.5
billion cash burn reported in 2019 highlights the risk of a rapid
deterioration.

Under the current environment, the company has made clear its
priority of preserving liquidity. Therefore, the company has not
repurchased shares and is working with vendors and other partners
in order to preserve working capital or, if needed, raise
additional liquidity resources in compliance with its financial
covenants.

The negative outlook reflects the risk of a weaker scenario from
coronavirus given the fluid situation and the tightening
liquidity.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

Ratings could be downgraded if Posadas is not able to fully resume
its operations this year and if the cash burn continues,
threatening Posadas' ability to cover corporate expenses such as
interests, salaries, taxes and working capital with internal
sources or if committed investments are at risk.

Ratings could be upgraded once the pandemic is over and there are
clear signs of recovery in Posadas operations. Moreover, Posadas
liquidity should be enough to cover short term needs with internal
sources, cash generation or committed funding sources.

Posadas is the leading hotel operator in Mexico that owns, leases,
franchises and manages 184 hotels and 29,851 rooms in the most
important and visited urban and coastal destinations in Mexico.
Urban hotels represent 81% of total rooms and coastal hotels
represent 19%. Posadas trades in the Mexican Stock Exchange since
1992.



===========
P A N A M A
===========

PANAMA CANAL RAILWAY: S&P Alters Outlook to Neg. & Affirms BB- ICR
------------------------------------------------------------------
On April 28, 2020, S&P Global Ratings revised its outlook on Panama
Canal Railway Co. (PCRC) to negative from stable. At the same time,
S&P affirmed its 'BB-' issuer credit and issue-level ratings on
PCRC.

Substantial declines in freight volume could pressure PCRC's credit
metrics in 2020. S&P said, "In our view, disruption to supply
chains amid the COVID-19 outbreak could plunge global
transportation demand. Moreover, we now forecast Latin America's
GDP to contract by a little more than 5% for 2020, depressing
regional demand. We believe this recessionary environment and the
significant industry headwinds will weigh on PCRC's performance,
despite its strategic geographic location. Moreover, in our view,
its increased customer concentration in a single client, A.P.
Moller - Maersk A/S (Maersk; BBB/Negative/--) and its subsidiary,
Hamburg Süd, lower PCRC's flexibility to navigate during a period
of economic headwinds. Our revised scenario assumes a double-digit
decline in PCRC's total freight volume by about 15%-20% in 2020,
with particular shrinkage in the second part of the year. In our
view, this would weaken PCRC's capacity to generate revenue and
EBITDA and will pressure the company's key credit metrics, raising
its debt to EBITDA towards 3.0x and lowering its FFO to debt below
30% in 2020."

S&P said, "In line with our expectations, PCRC's earnings results
in the last year benefited from an increase in volumes from its
main customer, Maersk. The good momentum in the company's earnings
extended through the first quarter of 2020, with a volume increase
of 4%. We believe this is partly because a significant part of the
volume that comes from Asia was in route before the pandemic hit
western demand. Because of this solid momentum, the company was
able to generate cash and closed March 2020 with cash in hand of
about $11.3 million. This, together with our expectation of FFO
generation in the next 12 months, provides cushion to cover
short-term debt maturities, along with PCRC's low working capital
and capital expenditure (capex) requirements, aided by its flexible
dividend distribution. However, given the uncertainty about the
depth and duration of the pandemic, we will continue monitoring
PCRC's operating and financial performance over the next few months
to quantify any potential deviation from our base-case scenario.

"We expect the company's freight volume to rebound in 2021, when we
believe the turbulence caused by the outbreak will fade and major
economies resume robust growth. This should help improve revenue
and EBITDA generation and therefore PCRC's credit metrics. We
expect EBITDA generation to trend towards $20 million at the end of
2021. However, there are material downside risks, given the
uncertainty over how soon governments will contain the spread of
COVID-19 and will allow economic activities to return to
pre-pandemic levels."




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

INDUSTRIA PARAGUAYA: Fitch Cuts LT IDR to 'B', On Watch Negative
----------------------------------------------------------------
Fitch Ratings has downgraded Industria Paraguaya de Alcoholes
S.A.'s Long-Term Issuer Default Rating to 'B' from 'B+'. The rating
has been placed on Rating Watch Negative.

The downgrade reflects the coronavirus' impact on the local and
international demand for ethanol. This downturn coincides with a
large investment project being made in Brazil by one of INPASA's
related companies, Ethanol Industria de Combustiveis S.A., which is
currently being partially financed through intercompany loans from
INPASA. Fitch expects escalating short-term refinancing needs for
the Group in Brazil amid a scenario where FCF generation is
expected to be in negative territory due to the impact of the
coronavirus pandemic on the local sugar and ethanol industry.

The rating takes into consideration INPASA's operating scale in
Paraguay compared to its peers in that market, as well as its
leadership position in the ethanol market in that country. INPASA's
business model also benefits from the sale of corn by-products that
contribute to its profitability historically. The rating also
incorporates the company's exposure to the high volatility of corn
and ethanol prices and the low correlation among them in Paraguay.

While Fitch does not expect an immediate impact on Paraguayan
ethanol prices, Fitch believes the current oil crisis will pressure
exports and local prices in the medium term. The lower prices also
directly affect INPASA's related companies in Brazil, which may
result in the need to increase intercompany loans to it, or the
default by that subsidiary on its debt.

KEY RATING DRIVERS

Demand Affected by Coronavirus: The coronavirus has reduced the
internal and external demand for INPASA's products and the company
is currently reducing its production. INPASA has also put their
main investment project, which was the doubling of the capacity of
its Sinop plant in Brazil, on hold. This project is not
consolidated in INPASA's finances.

Fitch assumes that investments in this new plant with capacity to
produce 1 million liters of ethanol per day in Nova Mutum/MT will
be finished by June 2020. The company has invested USD78 million in
this project and plans to invest an additional USD22 million to
complete construction. Fitch believes that INPASA's capacity to
deleverage once demand recovers could be limited given the
possibility of cash outflows needed to help the Brazilian company
manage through a severe downturn in ethanol prices.

Positive FCF Used to Finance Side Projects: Fitch projects INPASA
will generate EBITDA of about USD60 million in 2020 and USD70
million in 2021. INPASA's EBITDA margins are expected to be reduced
to 25% due to the sanitary crisis, before recovering in 2021. The
company generate about 30% of its EBITDA through corn by-products,
which reduces the negative impact from corn price volatility on
cash flow generation. Fitch projects that most of the cash flow
generated by the company will be used to finance the Brazilian
project.

Satisfactory Business Model: INPASA's business model benefits from
its large scale of production, equivalent to 1.1 million liters of
corn ethanol per day. The company operates two ethanol distilleries
located near Ciudad del Este and Asuncion, the largest cities in
the country, regions characterized by high concentration of corn
producers with high agricultural yield and proximity to the
consumer market, reducing logistics costs. INPASA is less
capital-intensive in comparison with its Brazilian counterparts, as
the company uses corn as the main raw material, while the
Brazilians use sugarcane. The company has a production capacity of
260 tons of sugar per day, and 700 tons per day of Dried Distillers
Grains with Solubles, a high protein and fibrous compound used as
animal feed.

Leadership Position in Paraguay: INPASA is the market leader in
ethanol sales in Paraguay, with a 70% market share. The ethanol
market in Paraguay is relatively small, estimated at 350 million
liters. The relatively small size of the country's vehicle fleet
limits the industry's growth potential. INPASA is able to supply
about 90% of the Paraguayan ethanol market, which is basically
composed by anhydrous ethanol, blended in a proportion of 25% to
the gasoline sold in the country. Although INPASA benefits from
legislation that requires all ethanol produced within the country
to be made from local raw materials, which limits competition with
imported ethanol, the flexibility of this rule by the local
government could occur as a way to guarantee fuel supply in the
country, pressuring the company's market position. INPASA has the
challenge to direct its sales to the export market, maximizing the
use of its two industrial plants, especially after completion of
investments in the new San Pedro plant.

DERIVATION SUMMARY

INPASA is the leader in the Paraguayan ethanol market. In revenue
terms, the company's scale of operations is much smaller than
Biosev (IDR B/Negative) and the participation of sugar over
INPASA's total revenues is equivalent to only 5%, while its
Brazilian peers present a much more balanced portfolio of products.
INPASA's high exposure to corn and ethanol price volatilities and
the low correlation between commodity prices increases the
volatility of its margins compared to Brazilian sugar and ethanol
producers. The Paraguayan ethanol market is concentrated in the
anhydrous type of the biofuel and is less regulated and more
informal than the Brazilian market, which increases the exposure of
INPASA's cash flows to unfavorable changes in operating environment
and regulation.

Fitch projects INPASA's net leverage to reach around 3.5x in 2020,
in line the 3.4x expected for Biosev in fiscal 2021. Such
comparison is distorted by the debt taken by INPASA to finance the
investments in the plant of Sinop in Brazil, and also by the fact
that all corn processed by the company is accounted for as COGS and
expensed at the company's Profit & Loss account, while the EBITDA
of Brazilian produces include only sugar cane purchased from third
parties. INPASA's liquidity is weaker than Brazilian peers, as the
availability of funding in Paraguay is concentrated in short-term
borrowing banking lines used to purchase corn, its main raw
material. INPASA typically includes corn inventories as part of its
liquidity management initiatives, while Brazilian producers adopt a
more conservative liquidity approach.

KEY ASSUMPTIONS

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

  - Production falls to 50% for two months, remains at 70% for four
months, and recovers to only 90% for the rest of the year 2020.

  - Average ethanol prices in 2020 and 2021 lower than 2019 due to
lower international oil prices.

  - Dividends of 50% of previous year's net income in 2020.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

  -- The Rating Watch could be removed if the company is able to
satisfactory maneuver its liquidity during this crisis, without
increasing its intercompany loans beyond original projections or
affecting INPASA's own capital structure.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

  -- A negative rating action could be taken place if INPASA
receives additional dividend pressure to finance related companies
in Brazil, resulting in leverage above 3.5x for a sustained period
of time;

  -- Any indication that the company will not be able to respond to
its short-term obligations;

  -- Change in regulation that negatively affects the company's
position in the Paraguayan market.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Weak Liquidity: Fitch projects INPASA's liquidity to remain weak,
with small cash position compared to short-term debt. In 2019, the
company had cash and marketable securities of USD4 million compared
and short-term debt of USD121 million. Total debt amounted USD242
million in 2019. At book value, INPASA's inventories amounted to
USD77 million.

INPASA's access to credit lines is limited to 180-day revolver
credits, and working capital credits backed with corn warrants. The
high concentration in short-term borrowings is partly explained by
the relatively small size of the Paraguayan banking market. Total
debt included USD75 million (30% of total debt) due in 2024, used
to finance the construction of the plant in Sinop by its related
company INPASA Agroindustrial S.A. and also investments in the new
plant set up in Nov Mutum, both in the State of Mato Grosso, which
Fitch assumes will be completed by June 2020. Around 80% of
INPASA's debt is in USD or EUR, and the remainder in PYG. Long-term
debt is backed with land owned by INPASA's shareholder and by
fiduciary lien of the plant in San Pedro.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.

ESG CONSIDERATIONS

The ESG score of 4 for Governance structure responds to the low
independence of the board of directors the power of the sole owner,
Jose Odvar Lopez.

The ESG score of 4 for Group structure reflects the related party
transactions with other companies of the group and its owner, which
do not consolidate with INPASA.



=======
P E R U
=======

NG PACKAGING: Fitch Gives BB+ LT IDR, Outlook Negative
------------------------------------------------------
Fitch Ratings has assigned a first-time Long-Term Issuer Default
Rating of 'BB+' to NG Packaging & Recycling Holdings S.A. The
Outlook is Negative. Fitch has also affirmed the 'BB+' Long-Term
IDR of San Miguel Industrias PET S.A. and revised its Outlook to
Negative from Stable. Simultaneously, Fitch has withdrawn the
Long-Term IDR of SMI due to a corporate reorganization; NG
Packaging is the new parent holding company for the group. In
addition to taking these rating actions, Fitch has affirmed the
senior unsecured notes of SMI at 'BB+'. The notes are guaranteed by
NG Packaging.

The Negative Outlook reflects a lower volume performance due to the
weaker consumer environment caused by the coronavirus pandemic and
a slower pace of deleveraging than initially expected for 2019 and
2020 due to higher other investments (the company consolidated its
99.9% ownership of SMI's shares).

SMI's Long-Term IDR was withdrawn with the following reason:
reorganization of rated entity.

KEY RATING DRIVERS

Slow Deleveraging: As an essential business, NG Packaging is
allowed to operate despite Peruvian restrictions in other sectors
that have been in place since March 16. The company ended 2019 with
a net leverage ratio of 4.4x (including factoring), which is above
the negative rating sensitivity. Fitch forecasts 2020 volumes to be
stable and EBITDA to improve only slightly, which could result in
EBITDA continuing to exceed rating thresholds. There remains
downside risk to these projections if the pandemic crisis persists.
Carbonated soft drink consumption is affected by
government-implemented quarantine measures. The company is
implementing cost-saving measures to limit the financial impact
caused by the coronavirus pandemic.

Positive FCF: Fitch projects FCF (after interest payments) to reach
about USD24 million due to moderate capex and working capital
initiatives undertaken to extend payable days with suppliers. Fitch
expects the company's expansionary capex to moderate after peaking
in 2017 at approximately USD93 million. Capex decreased to USD35
million in 2019 from USD54million in 2018, and Fitch projects capex
to remain at about USD30 million in 2020.

Contracted Sales: Fitch estimates NG Packaging's weighted average
life of contracts is over seven years with no large contracts due
before 2022, which is a positive rating consideration. These
long-term contracts provide a strong degree of predictability in
cash flow generation, reduce business risk and are positive for the
rating. About 87% of SMI's sales are based on long-term contract
agreements. The company has a pass-through model that provides
margin protection against price volatility in resin and natural
hedges against currency fluctuation, as equipment and client
contracts are in U.S. dollars.

Geographic and Product Diversification: NG Packaging diversified by
expanding operations in Colombia, Ecuador and Central America in
recent years. Fitch estimates 57% of the group's EBITDA was
generated outside Peru as of YE 2019 in Central America, Colombia,
Ecuador, Mexico and Argentina. This expansion is positive from a
business risk perspective, as it enables the company to dilute
costs by gaining economies of scale. The geographic and product
diversification also allows the company to bid for international
contracts and gives it more flexibility in negotiations with
international suppliers.

Leading Position in the Region: NG Packaging is the leading rigid
plastic company in the Andean, Central American and Caribbean
regions, with injection, blowing, cap molding and thermoforming
operations in Peru, Colombia, Ecuador, El Salvador, Panama,
Guatemala, Mexico and Argentina. This geographic diversification is
positive for the rating, as it enables the company to become the
one-stop shop for regional suppliers with a comprehensive packaging
solution that creates barriers of entry for competitors. The
company has recycling operations in Peru and Colombia, in line with
the company's aims to develop value-added and sustainable products.
The company significantly increased its scale and product
diversification over the past three years.

DERIVATION SUMMARY

The 'BB+' rating reflects NG Packaging's solid business profile as
the leading rigid plastic company in its regions, with injection,
blowing, cap molding and thermoforming operations in Peru,
Colombia, Ecuador, El Salvador, Panama, Guatemala, Mexico and
Argentina, and recycling operations in Peru and Colombia. The
company has strong market shares in its regions, notably in Peru
and Ecuador.

The rating reflects the company's geographic and product
diversification, its highly contracted revenues and its
pass-through model that gives margin protection against price
volatility. However, the company is smaller than international
peers such as Amcor plc (BBB/Stable). Larger size enables companies
to dilute fixed costs and reduce client and country concentration
risk. NG Packaging's client concentration remains high, with the
top seven clients representing a large portion of total revenues.
The company more than doubled its size over the last six years.
Fitch expects NG Packaging's net debt/EBITDA to trend toward 4.0x
by 2020 due to positive FCF and moderate capex.

KEY ASSUMPTIONS

  -- EBITDA of about USD100 million in 2020;

  -- Capex of about USD30 million;

  -- No dividend payments in 2020;

  -- Net debt/EBITDA to reach 4.0x by 2020.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

  -- Net leverage below 3.0x on a sustained basis;

  -- Strong FCF;

  -- Improved client diversification.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

  -- Net debt leverage above 4.0x on a sustained basis;

  -- Nonrenewal of a large supply contract or sharp contraction of
EBITDA.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Manageable Liquidity: The company had cash and cash equivalents of
about USD17 million and short-term debt of USD106 million as of
Dec. 31, 2019. Short-term debt is mainly related to working
capital. The USD300 million senior unsecured notes mature in 2022.
NG Packaging is a private company majority owned by Nexus Group,
the leading private equity fund in Peru, and is associated with
Intercorp Peru Ltd., one of Peru's largest conglomerates. Fitch
believes the Nexus Group could provide additional support if
needed.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.

ESG CONSIDERATIONS

The company has an ESG Relevance Score of '4' on Governance for
ownership concentration due to Nexus Group's control of the
company. Nexus Group is a leading private equity fund in Peru.

TERMINALES PORTUARIOS: Fitch Affirms 'BB' Notes Rating, Outlook Neg
-------------------------------------------------------------------
Fitch Ratings has affirmed Terminales Portuarios Euroandinos
Paita's USD110 million secured notes at 'BB'. The rating has been
removed from Rating Watch Negative and assigned a Negative Rating
Outlook.

RATING RATIONALE

The Negative Outlook reflects tighter projected metrics and a
longer recovery to 2019 levels, which is now estimated for 2022
caused by the reduction in volume that Fitch anticipates as a
result of the coronavirus pandemic and its effects on the economic
environment, including the potential impact on the demand and
supply dynamics for goods, and thus need for shipment. It also
reflects the increased concerns with regards to Paita's financial
position by the time the Phase III mandatory investments to expand
the port are triggered, as well as its capacity to cope with them.
According to Fitch's revised rating case, this will take place in
2022.

Under its revised rating case, Fitch expects a volume decline of
15% in 2020 with recovery to 95% of the 2019 levels in 2021. Under
this scenario, average debt service coverage ratio of 2.3x could
indicate a higher rating, according to applicable criteria.
However, the low DSCRs at 0.7x in 2022 and 0.5x in 2023 when the
mandatory investments are expected, effectively limit the rating.

As indicated, the recent outbreak of coronavirus and related
government containment measures worldwide create an uncertain
global environment for cargo operations in the near term. While
Paita's performance data through most recently available issuer
data may not have indicated a substantial impairment, material
changes in revenue and cost profile are occurring across the sector
and are likely to worsen in the near future as economic activity
suffers and government restrictions are maintained or expanded.

Fitch's ratings are forward-looking in nature, and Fitch will
monitor developments in the sector as a result of the virus
outbreak as it relates to severity and duration, and incorporate
revised rating case qualitative and quantitative inputs based on
expectations for future performance and assessment of key risks.

KEY RATING DRIVERS

Exposure to Cargo Volume - Revenue Risk (Volume): Weaker

The Port of Paita is a secondary port of call with some
concentration in cargo types, business lines and customers.
Profitability has been improving given the operator's strategic
emphasis on special services and the region's increasing
productivity. The port is exposed to cargo volatility as
contractual agreements with shipping lines are limited, and weak
overland transportation infrastructure limits the service area
mostly to commodity exports. Additionally, the region is exposed to
material volatility of fishing-related exports due to the area's
exposure to climatic effects related to El Nino.

Moderate Pricing Flexibility - Revenue Risk (Price): Midrange

Port tariffs and fees were initially established in the concession
agreement and are subject to an annual adjustment to reflect last
year's inflation, and a five-year adjustment to begin in 2019,
which will reflect the port's productivity level. Tariffs for the
provision of special services are not regulated and can be adjusted
to follow market prices. A Minimum Revenue Guarantee (MRG) was
granted by the Government of Peru, but Fitch considers it of
limited value due to its amount and the complex and extensive
process required for execution.

Defined Capital Program - Infrastructure Development and Renewal:
Midrange

The concession agreement established a well-defined capital
improvement, planning and funding process composed of four phases,
and includes mandatory and optional investments. Phase I included
the majority of investments and was finalized in 2014, and Phase II
was completed in 2016. Subsequent phases are triggered by defined
volume levels, and are funded by special, separate reserves.

Adequate Structural Protections - Debt Structure: Midrange

Fixed-rate senior debt with a structure that incorporates a strong
distribution test in order to trap cash to prefund future
investment costs and the project's financial flexibility is
sustained by adequate liquidity reserves. The amortization schedule
results in significant back-loading, since half of the debt is
expected to be repaid in the last six years of the debt's 25-year
term.

Financial Profile

Fitch's Revised Rating Case results in a robust average DSCR of
2.3x. However, required investments for Phases III and IV reduce
the project's financial flexibility and heighten its dependence on
cash reserves, which is reflected in below 1.0x coverages in 2022
and 2023.

PEER GROUP

Paita compares with Commonwealth Ports Authority (CPA; BB/Stable).
Both are small ports with weaker volume risk attributes with CPA
having nearly a 100% import-based cargo operation. Paita is
considered an Operator Port, while CPA operates under a 'landlord'
scheme, although Fitch's criteria does not directly favor one type
over the other. Under Fitch's rating cases, CPA has average DSCR of
1.6x, and Paita has 2.3x. Alabama State Port Authority (ASPA;
BBB+/Stable) is a port with similar attribute assessments of weaker
volume risk, reflecting its exposure to commodities, coupled with a
midrange price assessment reflecting its established history with
its users and the availability of state tax revenues in times of
volatility. ASPA's average DSCR 1.6x in rating case forecast, with
no need to draw on reserves under any case, result in a higher
rating for ASPA relative to Paita.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

  -- Volume reduction in 2020 greater than 15% along with the
expectation of a slow and extended recovery;

  -- An observed and continual deterioration on available liquidity
levels to face operating and financial obligations.

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

  -- The Negative Outlook may be revised to Stable upon the
identification of clear signals of sustained volume recovery along
with the expectation that the issuer will be able to adequately and
timely comply with the mandatory expansions of Phase III.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Public Finance issuers have a
best-case rating upgrade scenario (defined as the 99th percentile
of rating transitions, measured in a positive direction) of three
notches over a three-year rating horizon; and a worst-case rating
downgrade scenario (defined as the 99th percentile of rating
transitions, measured in a negative direction) of three notches
over three years. The complete span of best- and worst-case
scenario credit ratings for all rating categories ranges from 'AAA'
to 'D'. Best- and worst-case scenario credit ratings are based on
historical performance.

CREDIT UPDATE

In 2019, 20-foot Equivalent Unit containers' volume grew 9.7% to
297,236 units, above prior Fitch's Base Case expectation of 5.1%,
mainly driven by double-digit increases on exports. As of last
year, the port terminal has continued to benefit from the
development of local production areas, which have sustained the
trade dynamics of the region.

Even though the first two months of 2020 continued to present a
solid performance on volume, March's figures started to present the
effects of the trade slowdown due to the global sanitary efforts to
contain the coronavirus pandemic, with a 27% decrease in container
volume with respect to March 2019.

Last October, tariffs were updated to reflect inflation while
year-end revenues were almost USD51 million, 9% more than FBC,
mainly driven by higher-than-expected special services operations.
Revenues continue to show a positive trend since 2015, except for
the 2017 outlier period due to the El Nino phenomenon.

As for the Operational Expenses, Paita incurred on expenses of
USD17 million in 2019; against USD16.9 million assumed in Fitch's
base case. So far, funding of the Additional Investments Accounts
for Phase III and Phase IV of the port has been done according to
the funding schedule and balance as of April 2020 is USD9.8
million.

The DSCR for 2019 was 2.2x which outperformed FBC's expectation of
1.6x, given the aforementioned higher-than-expected revenues paired
with a high efficiency controlling the operational expenses.

FINANCIAL ANALYSIS

Fitch Cases

Fitch's revised rating case considers a 15% volume decrease in 2020
with a recovery to 95% of 2019 levels in 2021. For 2022 onwards, a
CAGR of 2.3% is being assumed, which includes the adverse effect of
one El Nino event in 2030, and a reduction in tariffs due to the
regulatory effect of improved productivity. The revised rating case
presents a minimum DSCR of 0.5x and average DSCR of 2.3x. No
external funding has been assumed for the financing of the coming
port expansions.

Fitch ran an additional sensitivity scenario, considering a steeper
volume decline in 2021 (25%), with a delayed recovery returning to
2019 levels by 2025. This scenario yields a minimum and average
DSCR of 0.1x and 1.9x.

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 minimal credit impact on the entity, either due to
their nature or to the way in which they are being managed by the
entity.



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

INTERNATIONAL FOOD: Seeks Court Approval to Hire Consultants
------------------------------------------------------------
International Food Service Purchasing Group, Inc. seeks authority
from the U.S. Bankruptcy Court for the District of Puerto Rico to
tap the services of consultants to assist in the operation of its
business.

The Debtor proposes to employ Gladys Canani, Evelyn Defendini and
Nick Hoist and pay the consultants for their services as follows:
  
     Gladys Canani        $52.28 per hour
     Evelyn Defendini     $24.04 per hour
     Nick Hoist           $1,346.15 per week

All three consultants are disinterested within the meaning of
Section 101(14) of the Bankruptcy Code, according to court
filings.

Ms. Canani holds office at:

     Gladys J. Canani
     7431 E Diamond St.
     Scottsdale, AZ 85257
     Tel: 480-284-1021
     Email: gcanani@ifscg.us

Ms. Defendini holds office at:

     Evelyn Defendini
     158 Bo. Playa Hucares
     Naguabo, PR 00718
     Tel: 787-599-3112
     Email: edefendini@ifscg.us

Mr. Hoist holds office at:

     Nick Hoist
     2820 Laramie Rd.
     Riverside, CA 92506
     Phone: 562-900-6966
     Email: nholst@ifscg.us

                 About International Food Service
                      Purchasing Group, Inc.

International Food Service Purchasing Group Inc. is a non-profit
organization in San Juan, P.R., that provides supply chain analysis
and management services for the restaurant industry.

International Food Service filed a Chapter 11 petition (Bankr.
D.P.R. Case No. 20-01458) on March 20, 2020.  In the petition
signed by Charles A. Maxwell, president, Debtor was estimated to
have $1 million to $10 million in both assets and liabilities.
Alexandra Bigas Valedon, Esq., at Modesto Bigas Law Office, is
Debtor's bankruptcy counsel.

INTERNATIONAL FOOD: Seeks Court Approval to Hire Skyway Consultant
------------------------------------------------------------------
International Food Service Purchasing Group, Inc. seeks authority
from the U.S. Bankruptcy Court for the District of Puerto Rico to
employ Skyway Consultants, LLC to provide consulting services.

Skyway charges $26.42 per hour for its consulting services.

The firm is a disinterested person within the meaning of Section
101(14) of the Bankruptcy Code, according to court filings.

The firm can be reached through:

     Glenda Camacho
     Skyway Consultants, LLC
     3216 Zander Drive Apt. 204
     Kissimmee, FL 34747
     Tel: 787-231-9425
     Email: gcamacho@ifscg.us

                 About International Food Service
                      Purchasing Group, Inc.

International Food Service Purchasing Group Inc. is a non-profit
organization in San Juan, P.R., that provides supply chain analysis
and management services for the restaurant industry.

International Food Service filed a Chapter 11 petition (Bankr.
D.P.R. Case No. 20-01458) on March 20, 2020.  In the petition
signed by Charles A. Maxwell, president, Debtor was estimated to
have $1 million to $10 million in both assets and liabilities.
Alexandra Bigas Valedon, Esq., at Modesto Bigas Law Office, is
Debtor's bankruptcy counsel.

INTERNATIONAL FOOD: Seeks to Hire Eleventh Hour as Consultant
-------------------------------------------------------------
International Food Service Purchasing Group, Inc. seeks authority
from the U.S. Bankruptcy Court for the District of Puerto Rico to
employ Eleventh Hour Consulting to provide consulting services.

The firm will be paid $43 per hour for its services.

Eleventh Hour is "disinterested" within the meaning of Section
101(14) of the Bankruptcy Code, according to court filings.

The firm can be reached through:

     Timothy Biddlecome
     Eleventh Hour Consulting
     4117 W Whispering Wind Dr.
     Glenddale, AZ 85310
     Tel: 951-833-7535
     Email: tbiddlecome@ifscg.us

                 About International Food Service
                      Purchasing Group, Inc.

International Food Service Purchasing Group Inc. is a non-profit
organization in San Juan, P.R., that provides supply chain
analysisand management services for the restaurant industry.

International Food Service filed a Chapter 11 petition (Bankr.
D.P.R. Case No. 20-01458) on March 20, 2020.  In the petition
signed by Charles A. Maxwell, president, Debtor was estimated to
have $1 million to $10 million in both assets and liabilities.
Alexandra Bigas Valedon, Esq., at Modesto Bigas Law Office, is
Debtor's bankruptcy counsel.

INTERNATIONAL FOOD: Seeks to Hire Nan-Mar LLC as Consultant
-----------------------------------------------------------
International Food Service Purchasing Group, Inc. seeks authority
from the U.S. Bankruptcy Court for the District of Puerto Rico to
employ Nan-Mar LLC to provide consulting services.

Nan-Mar charges $39.88 per hour for its consulting services.

The firm is a disinterested person within the meaning of Section
101(14) of the Bankruptcy Code, according to court filings.

Nan-Mar can be reached through:

     Nancy Beatty
     Nan-Mar LLC
     1047 Blankets Creek Dr.
     Canton, GA 30114
     Tel: 770-213-4107
     Email: nbeatty@ifscg.us

                 About International Food Service
                      Purchasing Group, Inc.

International Food Service Purchasing Group Inc. is a non-profit
organization in San Juan, P.R., that provides supply chain analysis
and management services for the restaurant industry.

International Food Service filed a Chapter 11 petition (Bankr.
D.P.R. Case No. 20-01458) on March 20, 2020.  In the petition
signed by Charles A. Maxwell, president, Debtor was estimated to
have $1 million to $10 million in both assets and liabilities.
Alexandra Bigas Valedon, Esq., at Modesto Bigas Law Office, is
Debtor's bankruptcy counsel.



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

BANQUE HERITAGE: S&P Alters Outlook to Stable & Affirms 'B+' ICR
----------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' long-term global scale issuer
credit rating on Banque Heritage (Uruguay) and its national scale
rating at 'uyBBB+'. S&P also revised the outlook to stable from
positive on both ratings.

The rating action follows S&P's expectation that the much more
difficult economic conditions due to the COVID-19 pandemic could
result in worsening asset quality metrics, higher credit losses,
and pressure on the bank's profitability and capitalization metrics
such that they could be at a level we no longer consider strong.



                           *********


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

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Chapman, Editors.

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

This material is copyrighted and any commercial use, resale or
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