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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

          Wednesday, May 6, 2020, Vol. 21, No. 91

                           Headlines



A R G E N T I N A

AEROPUERTOS ARGENTINA: S&P Lowers ICR to 'CC'
ARCOR SAIC: Fitch Affirms LT FC IDR at CCC+
ARGENTINA: Debt Workout Won't Be Its Last, Economist Says
MASTELLONE HERMANOS: Fitch Cuts Sr. Unsec. Notes Rating to 'CCC'
PAMPA ENERGIA: S&P Affirms 'B-' Rating on Regulatory Changes

PROVINCE OF ENTRE RIOS: S&P Lowers LT ICR to 'CCC', Outlook Neg.


B R A Z I L

ANDRADE GUTIERREZ: Fitch Cuts LT IDR to CCC- on Refinancing Risk
BRAZIL: Diesel Price Freeze Sought for Freight Charge Calculation
BRAZIL: Diesel Price Freeze Sought for Freight Table Calculation
BRAZIL: Unemployment Jumps to 12%; Official Warns it Could Double
EMBRAER SA: Moody's Cuts CFR & Senior Unsec. Debt Rating to Ba2

PETROLEO BRASILEIRO: Egan-Jones Cuts Sr. Unsec. Debt Ratings to B


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Pandemic Unleashes Concern Over Jittery Dollar
DOMINICAN REPUBLIC: Pledges Aid to Growers as Hotels Leave Void


E C U A D O R

EMPRESA PUBLICA: Fitch Cuts Sr. Unsec. Notes Rating to 'C/RR4'


E L   S A L V A D O R

EL SALVADOR: Fitch Affirms 'B-' LT IDR, Alters Outlook to Negative


J A M A I C A

JAMAICA: Approves Tourism Workers' Pension Scheme Regulations


M E X I C O

BANCA MIFEL: Fitch Affirms LT IDR at 'BB', Outlook Neg.
BANCO VE POR MAS: Fitch Affirms LT IDR at BB-, Outlook Now Neg.
INTERJET AIRLINES: Suspended From IATA Body Over Payment Arrears


U R U G U A Y

COOPERATIVA DE AHORRA: S&P Assigns 'B' Issuer Credit Rating

                           - - - - -


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

AEROPUERTOS ARGENTINA: S&P Lowers ICR to 'CC'
---------------------------------------------
On April 29, 2020, S&P Global Ratings lowered its issuer credit and
issue-level ratings on Argentine airport operator Aeropuertos
Argentina 2000 (AA2000) to 'CC' from 'B-'.

S&P said, "In our opinion, there's a realistic possibility of a
conventional default of AA2000's 2027 notes before year-end absent
an exchange offer. We don't believe AA2000's liquidity is
sufficient to meet all its financial commitments in the coming 6-9
months without a refinancing amid the currently volatile
conditions. The company has subdued cash flows and a cash position
of ARP2.2 billion as of March 31, 2020, while debt maturities total
around ARP6 billion. These include payments on the notes in May,
August, and November of about $19 million each, and a $120 million
bank loan amortizations in August and November of about $15 million
each. We take into consideration that the company is in the process
of renegotiating its $120 million bank loan. Although the terms and
conditions have not been made public, an agreement with the banks
is a condition precedent for the exchange offer.

"We also believe that the exchange offer as a whole (including
bidders tendering before and after May 1) doesn't provide
sufficient compensation to bondholders because we view chances of
less value than that in the original promise. Our value
consideration is related to features like a higher duration earning
the same rate after the PIK period and the 10% discount made on
those tendering after May 1, which we view as an offer below par,
as opposed to others tendering before May 1 who receive an offer at
par."

The exchange proposal includes the same maturity date yet with
higher duration, issuance of new notes at par and below par
depending on the date bondholders enter the exchange, a higher rate
during PIK of one year and dropping to the original level for the
remaining term of the new notes, and a 1% fee for bondholders
tendering at an early stage.

AA2000 posted a weaker-than-expected air traffic in the first
quarter. The business conditions for AA2000 deteriorated further
mainly due the air travel shutdowns caused by COVID-19 and other
macroeconomic variables such as the recently revised GDP
expectations and the sovereign's default. Even if restrictions on
air travel start to ease in the second half of the year, it will be
in a fragile state due to macroeconomic strains. These factors will
add pressure on AA2000's liquidity and impair its cash flows.

S&P said, "Our base-case scenario now assumes a traffic drop of
about 50%, instead of 30%, in 2020. Therefore, we expect AA2000's
EBITDA to be around ARP7 billion, down from our previous forecast
of ARP10 billion, debt to EBITDA of 5x-6x (compared with 3x-4x
previously), funds from operations (FFO) to debt of 10%-15% (versus
20%-25%), and EBITDA to interest coverage of 3.0x-3.5x
(4.5x-5.0x)."


ARCOR SAIC: Fitch Affirms LT FC IDR at CCC+
-------------------------------------------
Fitch Ratings has affirmed Arcor S.A.I.C.'s Long-Term Foreign
Currency Issuer Default Rating at 'CCC+' and its unsecured notes at
'B-'/'RR3'. Fitch has also affirmed Arcor's Long-Term Local
Currency IDR at 'B+' with a Negative Rating Outlook.

Arcor's 'CCC+' FC IDR continues to reflect Fitch's expectations
that the company will be able to cover its hard currency interest
expense with a combination of cash held abroad, export earnings and
cash flow from subsidiaries outside of Argentina. Fitch's criteria
allow for Recovery Ratings to be notched above the Argentina soft
cap of 'RR4' for corporates that have a two-notch gap or more
between the LC IDR and the FC IDR. This has resulted in the
one-notch uplift to bond issuance to 'B-'/'RR3', as outlined in
Fitch's Country-Specific Treatment of Recovery Ratings Criteria.

Arcor's solid business position is a key credit consideration in
maintaining the LC IDR at 'B+', as well as its ability to adjust
prices slowly to offset elevated inflation. The Outlook for the LC
IDR Negative reflects the weak economic environment in Argentina.

KEY RATING DRIVERS

FC IDR Above Country Ceiling: Fitch's criteria for rating FC IDRs
higher than an issuer's applicable Country Ceiling takes into
consideration the relationship between 12 months of foreign
currency debt service and cash held abroad, cash generated by
exports, undrawn committed credit lines and cash flow from foreign
operations. If the ratio of these factors covers debt service by
more than 1.0x-1.5x for 12 months, the issuer's FC IDR may be
notched one level above the applicable 'CCC' Country Ceiling of
Argentina. For Arcor, Fitch projects the ratio to exceed this
threshold in the next 12 months.

Weak Operating Environment: As an essential business, Arcor is
allowed to operate despite Argentina restrictions in other sectors.
Arcor's leverage improved in 2019 because the company was able to
increase prices despite the weak consumer environment in Argentina.
Fitch expects Arcor's adjusted gross debt/EBITDA to deteriorate to
about 5x in 2020 (4.1x in USD) from 4.5x in 2019 due to sluggish
economic conditions. Fitch projects moderate capex of about USD35
million and dividends of about USD18 million in 2020.

Strong Business Position: Arcor's 'CCC+' LC IDR reflects the
company's strong business position as a leading Latin American
producer of confectionary and cookie products. The company's
vertical integration ensures the quality of supplies as well as the
availability of main inputs. Arcor's brand names and distribution
platform support its leading market shares in chocolates, candies,
cookies and packaging in its main market, Argentina. The company's
brands reach consumers in 120 countries. Argentina, including
exports to third parties, contributed 67% of revenue and 87% of
EBITDA in 2019. Most of the other revenue and EBITDA came from the
Andean region (12% and 5%, respectively) and Brazil (11% and 4%,
respectively).

Arcor and Bagley Call Option: Arcor S.A.I.C. and Bagley Argentina,
S.A. together own 48.79% of the shares of Mastellone Hermanos
Sociedad Anonima at the end of April 2020, a leading dairy producer
in Argentina, for a total investment of about USD140 million. Arcor
has a call option for Mastellone's outstanding corporate stock
starting in 2020 until 2025. Mastellone also has a put option from
2020 to 2025. Fitch doesn't factor in the acquisition of Mastellone
in 2020 due to difficult capital market in Argentina to raise USD
debt. Fitch sees Mastellone as strategic for Arcor in the long
term. A full acquisition of Mastellone is unlikely to change
Arcor's ratings, given Mastellone's projected low leverage. Fitch
projects Mastellone's debt/EBITDA to be around 3.5x (2.8x in USD)
by 2020, with debt of USD200 million.

DERIVATION SUMMARY

Arcor's 'CCC+' FC IDR continues to reflect Fitch's expectations
that the company will be able to cover its hard currency interest
expense with a combination of cash held abroad, export earnings and
cash flow from subsidiaries outside of Argentina.

Arcor's solid business position is a key credit consideration in
maintaining the LC IDR at 'B+', as well as its ability to adjust
prices slowly to offset elevated inflation. The Outlook for the LC
IDR Negative reflects the weak economic environment in Argentina.

KEY ASSUMPTIONS

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

  -- Revenue growth driven by inflation.

  -- Capex of about USD35 million.

  -- Dividends of about USD18 million.

KEY RECOVERY RATING ASSUMPTIONS

The recovery analysis assumes that Arcor would be reorganized as a
going-concern in bankruptcy rather than liquidated.

Arcor would have a going-concern EBITDA of ARS7billion. This
conservative figure is 40% below the company LTM EBITDA of ARS12
billion. It takes into consideration factors such as intense price
competition, depressed consumer environment, cost inflation and
currency risks. An EV multiple of 6.5x EBITDA is applied to the
going concern approach, which reflects the company's
well-established brands in the confectionary, cookies and packaging
segments.

A distressed EV of ARS42 billion (post 10% of administrative
claims). Total debt of ARS52.9 billion. The recovery performed
under this scenario resulted in a recovery level of 'RR2', which is
an anticipated range of 71%-90% indicating superior recovery
prospect given default. Because of the 'RR4' cap for Argentine
corporates, Fitch limits the recovery for the senior unsecured bond
at 'RR4' despite a higher projected recovery.

In cases where there is a two-notch or more gap between the FC and
LC IDRs, Fitch's Country-Specific Treatment of Recovery Ratings
criteria allows for Recovery Ratings to be notched above the
Argentina soft cap of 'RR4'; therefore, Fitch has assigned a
Recovery Rating of 'RR3' to Arcor's senior unsecured bonds.

RATING SENSITIVITIES

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

  -- An upgrade of Argentina's sovereign rating would lead to an
upgrade of Arcor's FC IDR, given the high level of cash generated
from Argentine operations.

  -- An upgrade of the LC IDR is unlikely as the company intends to
acquire Mastellone in the future.

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

  -- Debt/EBITDA above 5x on a sustained basis could lead to a
downgrade of Arcor's LC IDR.

  -- Exports, cash abroad and committed bank lines not covering
hard currency interest expense by 1.5x and debt amortization by
1.0x-1.5x over 12 months could lead to a downgrade of the FC IDR.

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: At YE 2019, Arcor had ARS9.9 billion of cash and
cash equivalents and short-term debt of ARS15.8 billion, which is
about 43% of total debt; 68% of debt was in USD. Most of the
short-term debt is bank debt. The company has good access to local
bank lines and capital markets. The USD500 million senior unsecured
note is due in 2023.

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).

ARGENTINA: Debt Workout Won't Be Its Last, Economist Says
---------------------------------------------------------
Scott Squires at Bloomberg News reports that Argentina's latest
effort to restructure its overseas debt probably won't be its last,
according to Harvard University economist Carmen Reinhart, who has
sounded alarms over coming emerging markets crises in Venezuela and
Turkey.

If anything, she said in an interview, Argentina's initial offer
merely kicks the can down the road, according to Bloomberg News.
It will need to be revisited in a few years given the impact of the
pandemic on the global economy, she said, Bloomberg News notes.

"Unless Argentina manages to grow spectacularly, which would border
on the miraculous given the current global situation, the debt
package that they put together is not going to be big enough in
terms of haircuts," Reinhart said, Bloomberg News says.  "In all
probability, it will have to be revisited, and there will be one
more round of efforts to restructure," she added.

Argentina is starting a virtual roadshow to present its offer,
which aims to renegotiate $72 billion of sovereign and provincial
debt, Bloomberg News notes.  The national government will call on
about 20 institutions and funds -- including BlackRock Inc.,
Ashmore Group Plc and Fintech Advisory Inc. The proposal was
immediately panned by creditors when it was unveiled on April 17,
Bloomberg News discloses.

The nation is seeking a three-year moratorium on debt payments, a
62% reduction in interest payments and a 5% cut in principal,
Bloomberg News discloses. Holders of the country's overseas debt
are being offered a series of new securities of various maturities,
none of which will accrue interest before 2022, Bloomberg News
says.  No principal will be returned before 2026.

Argentina's efforts come as calls grow among indebted countries for
debt standstills, Bloomberg News notes.  Yet the nation isn't
representative of the broader pool of nations seeking debt relief
since its woes predate the pandemic, Reinhart said, Bloomberg News
relays.

"I find it difficult to make the case convincingly that a
standstill, even extended to a year, would cover the kind of debt
relief that Argentina is looking for," Reinhart said, Bloomberg
News notes.  "If anything, the dire situation among emerging
markets with Covid means the depth of Argentina's haircut has to be
bigger.  This has really wiped out the prospect of recovery, at
least over the nearer term horizon," he 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.


MASTELLONE HERMANOS: Fitch Cuts Sr. Unsec. Notes Rating to 'CCC'
----------------------------------------------------------------
Fitch Ratings has affirmed Mastellone Hermanos Sociedad Anonima's
Long-Term Foreign Currency Issuer Default Rating at 'CCC' and
downgraded its Long-Term Local Currency IDR to 'CCC+' from
'B'/Outlook Negative. In conjunction with this rating action, Fitch
has downgraded the senior unsecured notes to 'CCC'/'RR4' from
'CCC+'/'RR3'.

Mastellone's 'CCC+' ratings reflect the weak Argentine operating
environment, as well as the company's exposure to raw milk
production, and the currency mismatch of its U.S.
dollar-denominated debt versus its Argentine peso-based operating
cash flow. The downgrade of the Local Currency IDR reflects
increased refinancing risk of its senior unsecured notes due in
2021 as a result of the coronavirus pandemic and the deterioration
of capital market access for Argentine corporates.

KEY RATING DRIVERS

Refinancing Risk: Mastellone ratings reflect high refinancing risk
of its senior unsecured USD200 million note due in July 2021 as a
result of limited access to the U.S. bond market for Argentine
companies due to the inability of the Argentine government to meet
its debt obligations Fitch understands that the company has enough
funds to service its foreign currency interest expense (USD12.6
million due in June 2020). The company is contemplating various
options to refinance its bond, including refinancing with local or
international debt capital markets or banks.

Weak Operating Environment: As an essential business, Mastellone is
allowed to operate despite Argentina restrictions in other sectors
that have been in place since March 20,2020 The company ended 2019
with low leverage at about 2.5x due to increased EBITDA as a result
of price increases in the domestic market and operating
improvements. Fitch forecasts 2020 EBITDA to drop to about USD70
million in 2020 from USD104 million in 2019 due to cost inflation
and a weak consumer environment. Fitch expects Mastellone's
debt/EBITDA to reach about 3.5x (2.8x in USD) in 2020 from 2.5x in
2019.

Geographic Concentration: Mastellone generates almost all of its
sales in Argentina (Long-Term Issuer IDR at C) with only 10% of
sales coming from Brazil and Paraguay and another 8% being
generated by exports. Mastellone is exposed to hyperinflation in
Argentina and other direct and indirect sovereign-related risks,
including currency depreciation. Fitch downgraded Argentina's
Long-Term Foreign Currency IDR to 'C' on April 17, 2020. The
downgrade indicates that a distressed debt exchange process has
begun following the authorities' announcement of a restructuring
proposal for external bond.

Exposure to Currency Risk: Mastellone's debt is U.S.
dollar-denominated, which creates currency risk, as its sales are
mainly in Argentine pesos. The company has not entered into any
agreements to hedge exposure to depreciation risk. Mastellone has
historically been able to increase prices to offset high inflation
in Argentina.

Strong Business Position: Mastellone is the largest dairy company
and the leading processor of dairy products in Argentina.
Mastellone is leader in the fluid milk market, based on physical
volume, with a market share of approximately 63%. The company
maintains the No. 1 or No. 2 market position in most of its product
lines. These strong market positions allow Mastellone to benefit
from economies of scale in production, marketing and distribution.
The company purchases about 13% of all raw milk in Argentina, which
provides it with a degree of negotiating power.

Arcor and Bagley Call Option: Arcor S.A.I.C. and Bagley Argentina,
S.A. together owned 48.79% of Mastellone's shares at the end of
April 2020. Arcor has a call option for outstanding corporate stock
of Mastellone starting in 2020 and is expected to continue to
increase its stake. Fitch sees Mastellone as strategic for Arcor in
the long term.

DERIVATION SUMMARY

Mastellone is Argentina's largest dairy company and leading
processor of dairy products. The 'CCC' rating reflects
concentration of the company's operations in Argentina. Argentina's
'C' rating reflects the ongoing debt restructuring program.

Mastellone has a weaker position in scale, product diversification,
profitability and geographic diversification compared with
international peers such as Fonterra Co-operative Group Limited
(A/Negative), Nestle SA (A+/Stable) and Arcor (CCC+) in Argentina.

KEY ASSUMPTIONS

Revenues grow, driven by domestic price increases;

  -- EBITDA of about USD71 million in 2020;

  -- Capex of around USD8 million in 2020;

  -- Debt/EBITDA toward 3.5x in 2020.

KEY RECOVERY RATING ASSUMPTIONS

The recovery analysis assumes that Mastellone would be reorganized
as a going concern in bankruptcy rather than liquidated. Fitch has
assumed a 10% administrative claim. Mastellone's GC EBITDA would
reach ARS2.9 billion. This figure is conservative at 40% below the
company's LTM EBITDA of ARS4.9billion and takes into consideration
factors such as climatic events, changes in raw material costs,
sourcing and logistic issues, potential strikes or a shutdown of
exports markets. Fitch used a multiple of 6x to estimate a value
for Mastellone because of its strong brands and dominant position
in the Argentina dairy business. The recovery performed under this
scenario resulted in a Recovery Rating of 'RR1', consistent with
securities historically recovering 91%-100% of current principal
and related interest. Because of Fitch's 'RR4' soft cap for
Argentina, which is outlined in Fitch's criteria, Mastellone's
Recovery Rating has been capped at 'RR4', reflecting average
recovery prospects.

RATING SENSITIVITIES

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

  -- An upgrade of the Foreign Currency IDR and senior unsecured
notes is not expected in the immediate future.

  -- Refinancing of the international bond could lead to an upgrade
to the Local Currency IDR.

  -- Increased ownership above 50% by Arcor and Bagley could result
in positive actions on the LC and FC IDRs.

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

  -- No refinancing plan for the bond by early 2021.

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

Adequate Liquidity: Mastellone's liquidity is sufficient. The
company reported cash and equivalents of approximately ARS676
million and short-term debt of ARS484 million as of YE 2019. Debt
is mainly composed of 12.625% senior unsecured notes (USD200
million) due July 3, 2021.

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).

PAMPA ENERGIA: S&P Affirms 'B-' Rating on Regulatory Changes
------------------------------------------------------------
On April 29, 2020, S&P Global Ratings affirmed its 'B-' ratings on
Pampa Energia S.A. (Pampa), CAPEX S.A., YPF Energia Electrica S.A.
(YPF Luz), and AES Argentina Generacion S.A (AAG). S&P also revised
downward the stand-alone credit profiles (SACP) on Pampa and CAPEX
to 'b' from 'b+' and on YPF Luz and AAG to 'b-' from 'b'.

The regulatory change postponed the inflation adjustment, which
consisted of a formula that incorporated Argentina's Consumer Price
Index (PCI) and Internal Wholesale Price Index (IPIM). The
adjustment was announced less than 45 days after base-energy rates
(for power generators that don't have contracts in any modalities)
were converted into pesos from dollars. S&P said, "Moreover, the
postponement is occurring amid the average inflation of 47% in 2020
and likely 33% in 2021, estimates for which we extracted from our
last published article "Economic Recovery From The COVID-19
Pandemic Will Be Uneven Across Latin America" as of April 17,
2020."

S&P said, "In our view, the regulatory change points to the rise in
the government's discretionary moves in the power industry and
diminishes transparency and predictability of the regulatory
framework. In addition, it will dent the rated companies' cash
flows and increase currency mismatch, given that their base energy
revenue are in pesos while debt and investments are in dollars.

"Our new base-case scenario incorporates peso-denominated rates for
base-energy revenue with no inflation adjustment for 2020 and
afterwards. We would revise our assumptions if the regulator
restores inflation adjustments into rates."


PROVINCE OF ENTRE RIOS: S&P Lowers LT ICR to 'CCC', Outlook Neg.
----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
the province of Entre Rios to 'CCC' from 'B-'. The outlook is
negative.

Outlook

The negative outlook reflects S&P's view that the province of Entre
Rios is currently vulnerable and depends upon favorable financial
and economic conditions to meet its financial commitments.
Argentina's recession has worsened because of the measures to
contain the COVID-19 pandemic, which could result in
higher-than-expected deterioration in the province's fiscal
performance. This, coupled with a weakening liquidity position,
could increase the risks of default or distressed exchange.

Downside scenario

S&P said, "We could lower the long-term ratings on the province in
the next twelve months if we perceive an increasing likelihood of
delays in debt servicing or debt exchange amid limited financing
options. Given the stressed economic and financial conditions in
Argentina and the province, we would likely classify a debt
exchange as a tantamount to default, because in a distressed
exchange, holders accept less than the original promise because of
the risk that the issuer won't fulfill its original obligations."

Upside scenario

S&P could revise the outlook to stable in the next 12 months if the
administration undertakes corrective fiscal measures that
strengthen Entre Rios' fiscal profile and liquidity position and
sets a clear strategy for timely payment of its financial
obligations. Given the various and strong links between Argentina
and the province of Entre Rios, the stabilization of the
macroeconomic and financial conditions in Argentina and clear
policy signals and execution of policies from the national
government would be relevant for an upgrade.

Rationale

S&P said, "The downgrade reflects our view that Entre Rios' fiscal
dynamics could hamper its ability to service its debt in a timely
manner in the next 12 months, without unforeseen positive
developments. The COVID-19 outbreak has exacerbated the province's
already stressed fiscal needs and resources and will push the
operating deficit over 8% of operating revenues from 2% in 2019.
These poor fiscal conditions, along with the limited access to
sources of liquidity (including the national government), will
erode the province's cash position. That said, we highlight that
debt service in the next 12 months is limited when compared to the
provincial budget. We estimate the province's debt service for the
remainder of the year to be ARS5 billion (3% of annual operating
revenues)."

At the same time, the ratings reflect a weak and deteriorating
economic profile, with GDP per capita expected to fall to $5,600
from $6,500 in 2019 given the severe economic contraction this
year. These challenging conditions, along with limited liquidity
planning, raise questions about the province's capacity and
willingness to make full and timely payments on its financial
obligations due in the next 12 months.

Fiscal deterioration further pressures Entre Rios' already fragile
liquidity position

S&P said, "Our base-case scenario assumes that Entre Rios will post
an operating deficit of 8% of operating revenue in 2020, and a
deficit after capital expenditures (capex) of 10% of total
revenues. We expect the deficit to only gradually narrow in the
next two years, since the economy will recover modestly. The
widening fiscal deficit reflects both revenue shortfalls and rising
spending pressures. Preliminary data already indicated a sharp
deterioration in provincial finances before the lockdown measures,
because rising spending due to the very high inflation hasn't been
accompanied by similar growth in revenue collection. The mismatch
between revenues and expenditures reflects the province's
inflexible budget structure: payroll and pensions make up 70% of
Entre Rios' operating spending. Entre Rios' annual pension deficit
has been rising over the last several years and reached almost 9%
of operating revenues in 2019, from 7% in 2017. Although the
province covers part of this deficit with national government
transfers, in our view the rapidly rising deficit signals
significant pressure in the provincial budget.

"Capital spending will continue to be the main source of adjustment
in the budget, and we expect it to reach a record low of only 1% of
operating expenditures this year, from 5% in 2017-2019. As room to
continue putting off public works becomes more limited, the prudent
management of salary policies will mainly determine the province's
level of fiscal consolidation.

"We expect the province to mainly to use its previously accumulated
cash and short-term debt to finance its deficit, given that market
access will remain limited amid the renegotiation of the sovereign
debt. Although the province's liquidity position is very weak, next
month's debt service is low. We estimate the province's debt
service for the rest of the year to be ARS5 billion (3% of annual
operating revenues). ARS3 billion is due in August, when the
province faces a ARS1.6 billion amortization with ANSES and a $21
million coupon payment of its 2025 bond. The province expects to
receive funding from the national government for about ARS3 billion
to cope with impact from the COVID-19 pandemic. Considering the
estimated amount of debt service in 2020, we believe the province
could resort to short-term instruments to cover this maturing
payment (as it did until December 2017), or further delay capex or
payment to suppliers to cover the maturing payment. Debt service
payment becomes heftier in 2023 when the international bond starts
to amortize.

"In our view, debt stock is not a key rating constraint for Entre
Rios, although it could rise rapidly if the administration delays
the fiscal consolidation. We expect debt stock to reach 40% of
operating revenues in 2020, from 38% in 2019, below that of peers
like the provinces of Buenos Aires and Mendoza. Afterwards, we
expect direct debt and interest payments to gradually decrease in
line with the Argentine peso's expected appreciation. Amid limited
access to market funding, we consider that the national government
could become a more important source of funding for the province."

Rapid deterioration of economic conditions raises management
challenges

The hit from COVID-19 and the associated lockdown measures should
result in a deep economic contraction this year. S&P said, "We
expect the provincial economy to shrink 7% in 2020, in line with
our expectation for Argentina. Entre Rios' GDP per capita will be
about $5,600 in 2020, down from nearly $7,900 in 2017-2019,
reflecting not only the recession but also the peso's depreciation
in the last few years. At the same time, we think that the
structural weakness of the Argentine economy, present before the
pandemic, indicates that the recovery will be only moderate. We
expect inflation to remain very high, as it has been in recent
years."

The deterioration of the province's socioeconomic profile raises
fiscal requirements, while revenues are rapidly eroding. Even
though Bordet's administration showed disciplined fiscal policies
in the province in 2016-2018, S&P believes the commitment to fiscal
consolidation has diminished as the recession has become more
severe. Financial planning has historically been a weakness of the
province, partly because of Argentine's volatile economy. However,
S&P notes that the fiscal planning horizon has shortened as
economic conditions have rapidly worsened. Timely budgetary
adjustments in low-priority areas would be key to balance the
financial needs of the province while access to external sources of
funding, including support from the national government, will
remain limited.

S&P said, "Argentina is in a fragile fiscal position and we
consider that its ongoing debt restructuring process could result
in delays in support to subnational governments. We assess the
institutional framework for Argentina's local and regional
governments (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 by fiscal regulations and lack of
consistency over the years, which jeopardizes 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
  Entre Rios (Province of)
   Issuer Credit Rating  CCC/Negative/--  B-/Negative/--

  Entre Rios (Province of)
   Senior Unsecured             CCC            B-




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

ANDRADE GUTIERREZ: Fitch Cuts LT IDR to CCC- on Refinancing Risk
----------------------------------------------------------------
Fitch Ratings has downgraded Andrade Gutierrez Engenharia S.A.'s
Long-Term Foreign and Local Currency Issuer Default Ratings to
'CCC-' from 'CCC+'. At the same time, Fitch has affirmed the
company's Long-Term National Scale Rating at 'CCC(bra)'. Fitch has
also downgraded Andrade Gutierrez International S.A.'s senior
secured notes due 2021 and 2024, fully and irrevocably guaranteed
by AGE, to 'CCC-'/'RR4' from 'CCC+'/'RR4'.

The downgrade reflects AGE's heightened refinancing risk and strong
liquidity pressure amid a scenario of severe economic downturn and
restricted access to credit lines. The company's cash position of
about BRL400 million is weak to support debt amortizations, coupon
payments and fines from the lenience agreement of about BRL500
million during 2020. The depreciation of the Brazilian real also
adds pressure to the company's annual coupon payments of USD43
million. In Fitch's opinion, AGE is highly exposed to the decision
between the amortization of debt and coupon payments of about
BRL400 million during 2020, or to strategically preserve cash to
support operations.

The rating downgrade also incorporates weaker than previously
anticipated cash flow generation and the increased uncertainties
about AGE's EBITDA generation capacity due to impacts caused by the
coronavirus on the company's operations. The potential cash burn
will depend on the duration of the outbreak, and the recovery of
cash flow will likely be pressured by the projected global
recession. Fitch expects world GDP to contract by 3.9% in 2020, a
recession of unprecedented depth in the post-war period, and
Brazilian GDP to decline 4.0%. In Fitch's opinion, this scenario
increases AGE's challenges to continue the turnaround of its
operations and recover the backlog on a sustainable basis.

Fitch understands the company's financial flexibility should be
affected by payment pressures at Andrade Gutierrez Participacoes
S.A.'s level, due to the very volatile market conditions. The
group's debt maturity is concentrated and includes AGPar's annual
coupon payments of about BRL124 million and BRL400 million
debentures maturing in 2021, being BRL164 million as of May. AGPar
strongly depends on dividends from CCR S.A.'s (AA+[bra]/Stable) to
meet its obligations. CCR shares guarantee on first lien AGPar
debenture and part of AGI's notes. The sharp drop in the value of
CCR's shares in the last couple of months reduced the guarantee of
AGPar BRL1.5 billion debentures to levels below the threshold of
150% and a waiver has been granted. The guarantee for its BRL370
million debentures remains slightly above the minimum of 100%.

KEY RATING DRIVERS

Strong Short-Term Liquidity Pressure: AGE's refinancing risk
increased due to impacts caused by the coronavirus on company's
cash flow generation capacity and more restricted access to credit
lines. The company has a cash position of about BRL400 million and
debt amortizations around BRL146 million, coupon payments of BRL250
million and fines from the lenience agreement of BRL110 million up
to the end of 2020. In Fitch's opinion, even if AGE succeeds
refinancing debt maturities, liquidity is weak to face coupon
payments, fines from the lenience agreement and to support
operations.

Deterioration of the Operating Environment: The operating
environment for the Engineering and Construction companies in
Brazil has substantially deteriorated and increased uncertainties
about AGE's capacity to continue the turnaround of its operations
and recover the backlog on a sustainable basis. AGE's backlog was
BRL8 billion in December 2019, and the company gained BRL1.3
billion in new projects on the first quarter of 2020. Fitch
estimates the company is operating at 50% of its overall pace due
to restrictions imposed by the coronavirus outbreak, as some
projects have been partially or entirely suspended. The severe
downturn of the Brazilian economy will add pressure on the sector's
as infrastructure projects could be postponed.

Cash Flow Generation to Reduce: AGE's cash flow generation capacity
will reduce affected by the coronavirus restrictions, and Fitch
believes uncertainties are high for the company's EBITDA generation
in 2020. The potential cash burn from the suspension of works
depends on the duration of the outbreak and Fitch does not expect a
quick return of normalized operations. Fitch projects AGE to
generate EBITDA of BRL240 million and cash flow from operations of
BRL39 million in 2020, and considers a sharp reduction in cash flow
generation during the second quarter of 2020, with a slow recovery
during the second half of the year. FCF should be negative BRL106
million in 2020, pressured by BRL110 million of dividends to
service the fines from the plea bargain agreements. The group
signed about BRL1.6 billion of legal liabilities following the
agreements with MPF, antitrust CADE, Brazilian General Counsel's
Office and Controllers' General Office. In 2019, the company
generated BRL221 million of EBITDA, as per Fitch's calculation, and
FCF was negative BRL341 million.

Leverage Will Remain High: Fitch forecasts AGE's net adjusted
leverage, measured as net adjusted debt/EBITDA, peaking at 8.5x in
2020 from 8.1x in 2019. Net adjusted debt is expected to increase
to BRL2.2 billion in 2020 and 2021, as per Fitch's criteria, from
BRL1.9 billion in 2019, pressured by the negative FCF and real
depreciation. AGE is highly exposed to foreign exchange risk, as
about 93% of the company's total adjusted debt, including AGI's
bonds, is denominated in foreign currency and is not hedged, and
only 29% of the company's revenues are generated abroad. As of Dec.
31, 2019, 85% of AGE's total adjusted debt of BRL2.3 billion was
composed of AGI's bonds (BRL1.9 billion), while 11% (or BRL256
million) consisted of working capital lines. AGI's bonds due 2024
are guaranteed by 109.6 million shares of CCR as first lien,
equivalent to about 54% of the outstanding value, assuming current
share price.

DERIVATION SUMMARY

AGE's ratings reflect the company's heightened refinancing risk and
strong liquidity pressure amid a scenario of severe economic
downturn and restricted access to credit lines. Odebrecht
Engenharia e Construcao S.A. (OEC; RD) continues in the
restructuring process of Odebrecht Finance Limited bonds and has
obtained no relevant contracts.

KEY ASSUMPTIONS

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

  -- Backlogs of BRL7.5 billion in 2020 and BRL8.5 billion in
2021;

  -- Bidding and cost control discipline, reflecting in EBITDA
margins of 6.8% in 2020 and 8.3% in 2021;

  -- Sale of Hospital Metropolitano for BRL34 million in February
2020;

  -- Release of BRL50 million in restricted cash in 2020;

  -- Capex of BRL35 million in 2020 and BRL92 million in 2021;

  -- Dividends of BRL110 million in 2020 and BRL114 million in
2021.

KEY RECOVERY RATING ASSUMPTIONS

The recovery analysis assumes that Andrade Gutierrez Engenharia
S.A. would be reorganized as a going concern in bankruptcy rather
than liquidated. Fitch have assumed a 10% administrative claim.

Going-Concern Approach

  -- AGE's going concern EBITDA of BRL256 million that considers
Fitch's forecasts for 2020 (BRL240 million), plus dividends
received from unconsolidated investments (BRL16 million);

  -- The EBITDA forecast reflects the deceleration caused by the
coronavirus-related restrictions;

  -- The agency considered no gains from the potential collection
of past due receivables and legal claims, they would distort the
recurring EBITDA;

  -- Fitch's GC EBITDA considers the execution of firmed contracts
scheduled for 2020 at pressured margins of 6%;

  -- An EV multiple of 5x is used to calculate a
post-reorganization valuation and it is in line with historical
multiples of the industry;

  -- Considers AGI's bonds 1st lien guarantee of 109.6 million CCR
S.A. (CCR; AA+[bra]/Stable) shares at an average price of BRL13,
leading to a guarantee of BRL1.4 billion;

  -- The Recovery Rating is capped at 'RR4' as Brazil is classified
as a Group D country by Fitch and represents a recovery prospect
between 31% and 50%.

Liquidation Value Approach

Fitch excluded the liquidation value approach because Brazilian
bankruptcy legislation tends to favor the maintenance of the
business in order to preserve direct and indirect jobs. Moreover,
in extreme cases where LV was necessary, the recovery of the assets
has proved very difficult for creditors.

RATING SENSITIVITIES

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

  -- A positive rating action is unlikely in the short-term. In the
medium-term, however, if the company manages to refinance its
short-term debt and improve cash flow generation to more compatible
levels compared to its obligations, ratings could be revised
upwards.

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

  -- Deterioration in AGE's liquidity profile or difficulties to
progress on its refinancing strategy.

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

Short-Term Liquidity Pressures: AGE's refinancing risk increased
due to impacts caused by the coronavirus on the company's cash flow
generation capacity and more restricted access to credit lines. As
of Dec. 31, 2019, AGE's readily available cash, as per Fitch's
criteria, reached BRL402 million and short-term debt was BRL266
million. On a pro-forma basis, considering debt amortization and
refinanced during the first quarter 2020, AGE has debt
amortizations around BRL146 million, coupon payments of USD43
million and fines from the lenience agreement of BRL110 million up
to the end of 2020. Fitch understands AGE is in the process of
rolling over most of its short-term debt.

As of Dec. 31, 2019, AGE's total adjusted debt of BRL2.3 billion
was mainly composed by BRL1.7 billion (76%) senior secured bonds
due 2024 and BRL181 million (8%) of holdouts of the 2021 senior
secured bonds. Working capital lines represented 11% of total
adjusted debt, while permanent asset loans 2%. Approximately 93% of
AGE's total debt is in hard currency and unhedged. At the current
FX level, total adjusted debt increases to BRL2.9 billion.

The group's debt maturity is concentrated and includes AGPar's
annual coupon payments of about BRL124 million and BRL400 million
debentures maturing in 2021, being BRL164 million as of May. AGPar
strongly depends on dividends from CCR and COPER S.A. to meet its
obligations. The company has BRL1.5 billion in debentures
guaranteed by CCR shares that require a minimum 150% coverage rate.
The coverage is currently below this threshold and a waiver has
been granted.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch considers the coupon payments of the off-balance sheet debt
as operational cash flow. At the same time, the fines of the
leniency agreement are considered dividends.

ESG Considerations

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

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.

BRAZIL: Diesel Price Freeze Sought for Freight Charge Calculation
-----------------------------------------------------------------
Lachlan Williams at Rio Times Online reports that the Brazilian
Association of Motor Vehicle Drivers (ABRAVA) is calling on the
federal government to freeze the price of diesel in order to
calculate the minimum floor payment for highway transportation.

In practical terms, ABRAVA's petition refers to the temporary
suspension of the diesel trigger -- an instrument ruled by the
chart that provides for a review when the fluctuation in the price
of biofuel is more than ten percent, according to Rio Times
Online.

The ABRAVA request refers to the suspension of the so-called diesel
trigger, which would lower truckers' remuneration, it adds.

As reported in the Troubled Company Reporter-Latin America on April
10, 2020, S&P Global Ratings revised on April 6, 2020, its outlook
on its long-term ratings on Brazil to stable from positive.  At the
same time, S&P affirmed its 'BB-/B' long- and short-term foreign
and local currency sovereign credit ratings. S&P also affirmed its
'brAAA' national scale rating and its transfer and convertibility
assessment of 'BB+'. The outlook on the national scale rating
remains stable.

BRAZIL: Diesel Price Freeze Sought for Freight Table Calculation
----------------------------------------------------------------
Lachlan Williams at Rio Times Online reports that the Brazilian
Association of Motor Vehicle Drivers (ABRAVA) is calling on the
federal government to freeze the price of diesel in order to
calculate the minimum floor payment for highway transportation.

In practical terms, ABRAVA's petition refers to the temporary
suspension of the diesel trigger,  which would lower truckers'
remuneration, according to Rio Times Online.

As reported in the Troubled Company Reporter-Latin America on April
10, 2020, S&P Global Ratings revised on April 6, 2020, its outlook
on its long-term ratings on Brazil to stable from positive.  At the
same time, S&P affirmed its 'BB-/B' long- and short-term foreign
and local currency sovereign credit ratings. S&P also affirmed its
'brAAA' national scale rating and its transfer and convertibility
assessment of 'BB+'. The outlook on the national scale rating
remains stable.

BRAZIL: Unemployment Jumps to 12%; Official Warns it Could Double
-----------------------------------------------------------------
Rio Times Online reports that Brazil's unemployment rate rose to
12.2 percent in the three months through March, statistics agency
IBGE said, marking the biggest rise in three years even though
coronavirus was not the major factor and has yet to be fully
reflected in the data.

Shortly after the figures were released, privatization secretary
Salim Mattar said the unemployment rate could double due to the
coronavirus crisis, adding that the picture will only become
clearer around July and August, according to Rio Times Online.

"We already had a high unemployment rate in Brazil. It may increase
between 50  to 100 percent of what it was before," privatization
secretary Salim Mattar said in a live online event hosted by Credit
Suisse, the report notes.

As reported in the Troubled Company Reporter-Latin America on April
10, 2020, S&P Global Ratings revised on April 6, 2020, its outlook
on its long-term ratings on Brazil to stable from positive.  At the
same time, S&P affirmed its 'BB-/B' long- and short-term foreign
and local currency sovereign credit ratings. S&P also affirmed its
'brAAA' national scale rating and its transfer and convertibility
assessment of 'BB+'. The outlook on the national scale rating
remains stable.

EMBRAER SA: Moody's Cuts CFR & Senior Unsec. Debt Rating to Ba2
---------------------------------------------------------------
Moody's Investors Service downgraded its ratings for Embraer S.A.
and its subsidiaries (Embraer Overseas Limited and Embraer
Netherlands Finance BV; collectively "Embraer"), including the
company's corporate family rating and senior unsecured debt ratings
(each to Ba2 from Ba1). The ratings outlook is negative. This
concludes the review for upgrade initiated on February 1, 2019 for
all ratings other than the CFR, which was not placed on review at
that time.

Ratings downgraded:

Issuer: Embraer S.A.

Corporate Family Rating: Downgraded to Ba2 from Ba1

$500 million global senior notes due 2022: Downgraded to Ba2 from
Ba1

Issuer: Embraer Netherlands Finance BV

$1,000 million global senior notes due 2025 guaranteed by Embraer
S.A.: Downgraded to Ba2 from Ba1

Issuer: Embraer Overseas Limited

$540.52 million global senior notes due 2023 guaranteed by Embraer
S.A.: Downgraded to Ba2 from Ba1

Outlook actions:

Issuer: Embraer S.A.

Outlook changed to Negative from Rating Under Review

Issuer: Embraer Netherlands Finance BV

Outlook changed to Negative from Rating Under Review

Issuer: Embraer Overseas Limited

Outlook changed to Negative from Rating Under Review

RATINGS RATIONALE

The downgrades to Ba2 follow the termination of the Master
Transaction Agreement with The Boeing Company ("Boeing," Baa2
negative) that would have created a joint-venture focused on
commercial aviation containing Embraer's commercial aviation and
services segments. It was expected that, if successfully concluded,
the transaction would have significantly improved the credit
quality of the unsecured notes that would have been transferred to
the JV, and consequently would have left Embraer with virtually no
indebtedness and a still strong liquidity position. But the
downgrades also notably reflect the anticipated additional strain
on Embraer's financial performance and balance sheet in upcoming
years because of the harsh impact the coronavirus outbreak will
have on demand for new commercial and business aircraft, with a
multi-year period of recovery anticipated.

The negative outlook captures the high-level uncertainty around the
ultimate duration and severity of impact of the COVID-19 pandemic
on global economic activity and aircraft demand, and the likelihood
of material cash burn over the ensuing period. This is
notwithstanding the company's very good cash liquidity position,
which should more than sufficient to satisfy the company's
relatively modest debt maturities over the coming challenging
period.

The rapid and wide spread of the coronavirus outbreak, the strain
on the global economy, relatively low oil prices and asset price
declines have created a severe credit shock across many sectors,
regions and markets. The combined credit effects of these
developments are unprecedented. Airline and aircraft leasing
customers of Embraer's largest segment, Commercial Airplanes, are
most significantly affected by the shock given their exposure to
travel restrictions and sensitivity to consumer demand and market
sentiment. More specifically, Embraer is vulnerable to the impact
of the outbreak on demand for its commercial aircraft and related
services, as well as it executive jets, and now interruptions of
its manufacturing operations. Moody's regards the coronavirus
outbreak as a social risk under its ESG framework, given the
substantial implications for public health and safety. The
near-term impact of the coronavirus crisis is acute. The potential
for order deferrals and cancellations is a material risk factor,
fueled by expected significant reductions in airlines and aircraft
lessor fleet sizes and/or order books for indeterminate time
periods.

Embraer's Ba2 rating broadly reflects its solid position as the
leading regional jet maker and its reputation as a reliable
airplane producer, as bolstered by a very good liquidity position
derived from large cash balances and a manageable debt maturity
profile. The Ba2 rating also considers that funding from Brazilian
public banks would be available if needed. In Moody's view, Embraer
is still a strategic asset to the Brazilian government that still
owns a golden share in Embraer with veto rights. At the same time,
the cyclical nature of the aviation business and its increasing
competitive pressure constrain the rating, particularly given the
significant investments required on an ongoing basis to keep up
with evolving customer needs. Working capital pressures and high
levels of investment have led to higher financial leverage, which
will be exacerbated further by meaningful earnings and cash flow
erosion over the next 12-24 months, and serve as a significant
rating constraint.

LIQUIDITY

Embraer's strong liquidity is an important factor underpinning its
ratings. The company has consistently maintained a high level of
cash balances, like the level of its outstanding debt. As of 2019,
the company's pro-forma cash on hand and short-term investments of
$3.2 billion were enough to cover all its debt maturities through
2023. Its cash availability has been fluctuating during the year
because of seasonal working capital requirements, with the overall
cash flow strongest during the latter part of the year when most
aircraft tend to be delivered.

The profile and financial metrics of Embraer in a post-crisis
environment are subject to high uncertainty, but Moody's expects
that the company would ultimately be able to gain share and recover
its financial metrics over time, depending on the severity of the
current crisis.

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

The ratings are unlikely to be upgraded in the short term. Positive
rating pressure would not arise until the coronavirus outbreak is
brought under control, travel restrictions are lifted, and demand
for commercial airplanes returns to more normal levels. At that
point, Moody's would evaluate the balance sheet and liquidity
strength of the company, and any positive ratings pressure would
require evidence that the company is capable of substantially
recovering its key credit metrics.

Moody's could further downgrade Embraer's ratings if:

- There are expectations of deeper and longer declines in demand
for new aircraft, including a material extension into 2021 as a
result of the coronavirus outbreak, and particularly if not matched
by additional sources of liquidity

- Wider liquidity concerns come about, for instance due to cost
inflexibility

- There are clear expectations that the company will not be able to
maintain financial metrics compatible with a Ba2 rating following
the coronavirus outbreak, as potentially indicated by the
following:

- Gross adjusted leverage is expected to be sustainably above 5x

- Retained cash flow / net debt is expected to be sustainably below
15%

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Aerospace and
Defense Industry published in March 2018.

COMPANY PROFILE

Embraer is the leading manufacturer of commercial jets with up to
150 seats, with a growing defense and security segment and a line
of business jets, including new types for the medium-light and
medium-sized segments. Founded in 1969 by the Brazilian federal
government and privatized in 1994, Embraer is headquartered in Sao
Jose dos Campos, Brazil.

PETROLEO BRASILEIRO: Egan-Jones Cuts Sr. 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 Petroleo Brasileiro S.A. to B from B+. EJR also
downgraded the rating on commercial paper issued by the Company to
B from A3.

Petroleo Brasileiro S.A. - Petrobras, more commonly known as simply
Petrobras, is a semi-public Brazilian multinational corporation in
the petroleum industry headquartered in Rio de Janeiro, Brazil.




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

DOMINICAN REPUBLIC: Pandemic Unleashes Concern Over Jittery Dollar
------------------------------------------------------------------
Dominican Today reports that the exchange market continues under
the effects of the uncertainty unleashed by the pandemic.  On April
28, the benchmark US dollar rate closed at 54.51 pesos, though few
banks sell at that price.

At the close April 28, the US currency was sold through a bank
window at 55.33 pesos on average, although in some financial
institutions the dollar sold at 56.30 pesos, almost two pesos above
the reference rate published by Dominican Republic's Central Bank,
according to Dominican Today.

And despite the Central Bank's measures that involve increasing
liquidity not only in pesos but also in dollars, they have failed
to calm fears from economic factors about the future of the local
economy amid the pandemic, 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: Pledges Aid to Growers as Hotels Leave Void
---------------------------------------------------------------
Dominican Today reports that Presidency Minister Gustavo Montalvo
said the Ministry of Agriculture has taken a series of measures to
support vegetable growers who sell their harvests to hotels and
restaurants and have suffered due to the crisis.

The President of the High-Level Commission for the Prevention and
Control of Coronavirus, said that starting this week, Merca Santo
Domingo will receive 25 tons a day of greenhouse vegetables and
open field tomatoes, packed in 5-pound bags, according to Dominican
Today.

"The Ministry of Agriculture has coordinated with Organizations of
Producers of Constanza and Jarabacoa, in La Vega, and of Rancho
Arriba, El Pinal and Sabana Larga, in San Jose de Ocoa, the
reception of 10 trucks of cabbage daily, lettuce and beets, also in
the Santo Domingo," Montalvo said in the National Palace, 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).



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

EMPRESA PUBLICA: Fitch Cuts Sr. Unsec. Notes Rating to 'C/RR4'
--------------------------------------------------------------
Fitch Ratings has downgraded the senior unsecured notes issued by
Empresa Publica de Exploracion y Explotacion de Hidrocarburos
Petroamazonas EP due in November 2020 to 'C/RR4' from 'CC/RR4'. The
notes have a total amount of approximately USD175 million
outstanding.

The rating action follows the announcement that the company has
commenced a solicitation of consents to amend the unsecured notes,
which Fitch considers a distressed debt exchange as per its DDE
criteria. In Fitch's opinion, the offering imposes to bondholders
of the notes a material reduction in the notes' terms as (i) it
seeks to extend the maturity date to December 6, 2021 from November
6, 2020, (ii) establish a new amortization schedule, (iii) reduce
the interest amount now scheduled to September 6, 2020 by USD0.5
for each USD1,000 notes and (iv) eliminate cross defaults events
arising from certain sovereign notes. The proposed amendments
require the affirmative vote of holders of more than 75% of the
outstanding aggregate principal amount of the existing notes, in
accordance with the existing notes indenture.

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

KEY RATING DRIVERS

PetroAmazonas' senior unsecured notes rating reflect those of
Republic of Ecuador as a guarantor. The downgrade of Ecuador's
rating to 'RD' on April 20th follows the agreement by commercial
bondholders to the government's "consent solicitation" to defer
upcoming bond repayments by four months, which Fitch deems to be
the first step in a DDE that will have concluded when an intended
comprehensive restructuring of these securities is carried out that
normalizes the relationship with the international financial
community.

On April 18, the government of Ecuador announced that holders of
ten external bonds totaling USD19.2 billion agreed to the "consent
solicitation" initiated on April 8 that will defer approximately
USD800 million in upcoming interest payments until August. The
authorities have made this request to achieve cash flow relief that
could better enable them to attend to the health and economic
crisis stemming from the coronavirus pandemic. They plan to use
this four-month standstill period to pursue a comprehensive
restructuring of those bonds to ensure debt sustainability, as well
as a new "successor program" to the existing Extended Fund Facility
with the IMF.

Fitch deems this change in the terms of existing external bonds to
be a DDE, given that it entails a material reduction in terms for
bondholders and was agreed upon to avoid an outright payment
default on these securities.

The sovereign's liquidity position is exceptionally tight, and
social and political pressure for relief from external debt service
to attend to the domestic crisis has grown considerably. Incentives
to seek relief on external debt repayment may also build to
mitigate risks to the dollarization regime. Central bank
international reserves fell below USD2 billion at end-March and
covered 43% of the reserve requirements of financial institutions,
the lowest levels in the past two decades of dollarization. Fitch
downgraded Ecuador's rating to 'CC' on March 24 to indicate
probable default of some kind as a result of these pressures and to
'C' on April 9 when the government initiated the consent
solicitation process.

DERIVATION SUMMARY

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

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

KEY ASSUMPTIONS

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

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

KEY RECOVERY RATING ASSUMPTIONS

  -- The recovery analysis assumes that the value of PetroAmazonas
would be assessed under a going concern approach;

  -- Fitch has assumed a 10% administrative claim.

PetroAmazonas' notes recovery ratings are capped at an average
Recovery Rating of 'RR4' since Ecuador is categorized within Group
D with a soft cap of 'RR4'. This assumes a recovery in the range of
31% to 50% for creditors.

RATING SENSITIVITIES

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

  - An upgrade of the sovereign combined with the completion of the
consent solicitation process.

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

  - Completion of a commercial debt restructuring that Fitch judges
to have normalized the relationship with the international
financial community.

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

Not Applicable as the 'C' rating is the lowest a debt can be
rated.

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.

SUMMARY OF FINANCIAL ADJUSTMENTS

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

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.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Petroamazonas is a government-related entity of Ecuador. Ecuador
was downgraded to 'RD' on April 20, 2020.



=====================
E L   S A L V A D O R
=====================

EL SALVADOR: Fitch Affirms 'B-' LT IDR, Alters Outlook to Negative
------------------------------------------------------------------
Fitch Ratings has affirmed El Salvador's Long-Term Foreign-
Currency Issuer Default Rating at 'B-' and revises the Outlook to
Negative from Stable.

Fitch affirmed El Salvador's Long-Term Local Currency rating at
'B-', revised the Outlook to Negative from Stable and withdrew the
rating. The Short-Term Local Currency 'B' rating was affirmed and
subsequently withdrew the rating.

The ratings were withdrawn due to a criteria change. The new
criteria states that for fully dollarized economies like El
Salvador, Fitch would treat default on their dollarized debt as a
default on the sovereign's FC IDR.

KEY RATING DRIVERS

The Negative Rating Outlook reflects deterioration in debt
sustainability metrics as a result of the widening of the fiscal
deficit and economic contraction as well as financing constraints
stemming from increased reliance on short-term debt, limited scope
for additional local market financing and uncertain access to
external market financing given high borrowing costs. However,
multilateral funding can help ease borrowing constraints this
year.

Fitch projects a deep economic contraction of 4.8% in 2020 due to
the extended national quarantine to combat the coronavirus pandemic
as well as 20% fall expected in remittances, representing nearly
20% of GDP, that will hit domestic demand sharply. However, Fitch
expects a strong rebound of 5% in 2021 but risks are to the
downside in both 2020-2021.

The expected 15% fall in tax revenues due to the economic downturn
and spending efforts totaling USD1 billion (around 3.5% of GDP) to
combat the pandemic will lead to sharp deterioration in the fiscal
position in 2020, which Fitch projects at 10.5% of GDP, up from
3.1% of GDP in 2019.

As a result, debt sustainability metrics are expected to
deteriorate with government debt to GDP projected at 85% of GDP in
2020, which is significantly higher than the current 'B' median.
Interest to revenues is high as well, approaching 20%. Both metrics
are rising rapidly with debt to GDP expected to reach 90% by 2022.
However, almost 25% of the total public debt is related to pensions
with low fixed rates.

Fitch estimates total financing needs of USD3.1 billion (12% of
GDP) in 2020, including the central government deficit and USD383
million in debt amortizations, excluding nearly USD2 billion in
short-term 'Letes' and 'Cetes' T-bills as well as arrears. El
Salvador faces a financing gap of USD1.4 billion in 2020 given
USD389 million received from the IMF and an additional nearly
USD1.3 billion obtained in the local market, mostly in short-term
debt and local pension-related debt CIPs. Much of the gap will
likely be filled through multilateral disbursements.

Financing options in the local market are limited given that the
government has nearly approached the legal upper limit of USD1.5
billion in short-term Letes debt with nearly USD500 million added
year to date. The government has also issued almost USD500 million
in one-year Cetes in the local market. Rates on Letes and Cetes
issuance in April 2020 were 9.5%, over 250 basis points higher than
March issuances. The local private pension funds and banks have
limited appetite for buying further issuances given the fall in
domestic liquidity and expected credit deterioration. The large
stock of short-term debt will also complicate the government's debt
service capacity as well, increasing roll-over risks.

Despite the challenges, Fitch expects the sovereign will be able to
meet near-term debt service payments. The government faces only
USD383 million in debt amortizations in 2020. However, interest
payments are more onerous with total USD1.0 billion due in 2020
(over 20% of government revenues). If financing is not secured, the
government could face difficult budget cuts and build-up of
arrears.

Furthermore, Fitch estimates El Salvador's 2021 fiscal deficit at
7.2% of GDP given the expected increase in the interest burden,
fall in income taxes and difficulty of obtaining a faster
consolidation ahead of the 2021 legislative elections. Financing
needs will remain high at around USD2.5billion in 2021, not
including short-term debts. The 2021 elections could also
complicate authorization to secure financing (a two-thirds majority
in the Legislative Assembly is needed to authorize new debt
issuance).

External pressures mainly stem from the capital account as Fitch
estimates that the current account deficit will fall to 1.9% of GDP
in 2020 from 2.3% in 2019 given an expected sharp fall in imports
due to the economic contraction and fall in oil prices despite an
anticipated in remittances. Net external debt is expected to rise
to nearly 80% of current account payments in 2020 from 52% in
2019.

El Salvador's ratings are supported by higher human development and
governance indicators compared to peers and history of relative
macroeconomic and financial stability anchored by official
dollarization while high government debt, recent history of default
on local pension related debt and low growth potential constrain
its ratings.

ESG - Governance: El Salvador has an ESG Relevance Score (RS) of 5
for both Political Stability and Rights and for the Rule of Law,
Institutional and Regulatory Quality and Control of Corruption, as
is the case for all sovereigns. Theses scores reflect the high
weight that the World Bank Governance Indicators (WBGI) has in its
proprietary Sovereign Rating Model. El Salvador has a medium WBGI
percentile ranking of 36.9%, reflecting a recent track record of
peaceful political transitions, a moderate level of rights for
participation in the political process, moderate institutional
capacity, established rule of law and a moderate level of
corruption.

SOVEREIGN RATING MODEL (SRM) AND QUALITATIVE OVERLAY (QO)

Fitch's proprietary SRM assigns El Salvador a score equivalent to a
rating of 'B-' on the Long-Term Foreign-Currency IDR scale.

Fitch's sovereign rating committee did not adjust the output from
the SRM to arrive at the final LT FC IDR.

Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three-year centered
averages, including one year of forecasts, to produce a score
equivalent to a LT FC IDR. Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within its
criteria that are not fully quantifiable and/or not fully reflected
in the SRM.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative
rating action/downgrade: --A sharp increase in financing
constraints, such as the inability to acquire adequate financing
from multilaterals or other sources of funding. Political gridlock
that affects future access to financing would also be a negative
factor. --Deterioration in the outlook for fiscal consolidation or
growth prospects that negatively affect debt sustainability.
Factors that could, individually or collectively, lead to positive
rating action/upgrade: --An easing of financing constraints. --A
post-coronavirus fiscal adjustment consistent with improvement in
public debt sustainability.

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.

KEY ASSUMPTIONS

Fitch expects U.S. growth and employment to track its April 2020
Global Economic Outlook.

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

El Salvador has an ESG Relevance Score of 5 for Political Stability
and Rights as World Bank Governance Indicators have the highest
weight in Fitch's SRM and are highly relevant to the rating and a
key rating driver with a high weight.

El Salvador has an ESG Relevance Score of '5' for Rule of Law,
Institutional & Regulatory Quality and Control of Corruption as
World Bank Governance Indicators have the highest weight in Fitch's
SRM and are therefore highly relevant to the rating and are a key
rating driver with a high weight.

El Salvador has an ESG Relevance Score of '4' for Human Rights and
Political Freedoms as strong social stability and voice and
accountability are reflected in the World Bank Governance
Indicators that have the highest weight in the SRM. They are
relevant to the rating and a rating driver.

El Salvador has an ESG Relevance Score of '4' for Creditor Rights
as willingness to service and repay debt is relevant to the rating
and is a rating driver for El Salvador, as for all sovereigns.

Except for the matters discussed, 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,
either due to their nature or to the way in which they are being
managed by the entity.



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

JAMAICA: Approves Tourism Workers' Pension Scheme Regulations
-------------------------------------------------------------
RJR News reports that the House of Representatives has approved the
Tourism Workers' Pension Scheme Regulations.

The regulations outline the registration process for employed and
self-employed persons under the pension scheme, according to RJR
News.

Tourism Minister Edmund Bartlett noted that the approval of the
regulations will pave the way for implementation of the scheme, RJR
News notes.

He pointed out that prior to the impact of the coronavirus
pandemic, 160,000 people were employed in the local tourism
industry, the report notes.  To date, 120,000 have been laid off,
the report relates.

It's reported that those who are still employed work three days a
week and are paid a stipend, the report relays.  As a result, the
Tourism Minister argued that there is a basis for registration to
the pension scheme to begin, the report adds.

As reported in the Troubled Company Reporter-Latin America on April
23, 2020, S&P Global Ratings on April 16, 2020, revised its outlook
on Jamaica to negative from stable. At the same time, S&P Global
Ratings affirmed its 'B+' long-term foreign and local currency
sovereign credit ratings, its 'B' short-term foreign and local
currency sovereign credit ratings on the country, and its 'BB-'
transfer and convertibility assessment.



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

BANCA MIFEL: Fitch Affirms LT IDR at 'BB', Outlook Neg.
-------------------------------------------------------
Fitch Ratings affirmed Banca Mifel's Long Term Foreign and Local
Currency Issuer Default Ratings at 'BB' and Short-Term Foreign and
Local Currency IDRs at 'B'. Additionally, the bank's National Long
Term and Short-Term scale ratings at 'A+(mex)'/'F1(mex)',
respectively. The Rating Outlooks on the long-term IDRs is Negative
and the Rating Outlook on the National Scale rating was revised to
Negative from Stable.

The Negative Outlook on Mifel's long-term IDRs reflects Fitch's
expectations that the bank's credit profile will deteriorate over
the medium term as a result of the weaker operating environment due
to the disruption of economic activity and financial markets from
the coronavirus pandemic. Fitch believes that Mifel's business
model, with higher exposures to more vulnerable segments of the
economy, will result in a deterioration of both asset quality and
profitability metrics. While the bank enters this economic downturn
with financial metrics commensurate to its current rating category,
there is limited headroom for deterioration. The Outlook on the
bank's long-term National Scale Rating was revised to Negative as
Fitch expects a greater deterioration in Mifel's credit profile
relative to its domestic peers.

KEY RATING DRIVERS

Mifel's IDRs and National Ratings are driven by its intrinsic
creditworthiness, as reflected in its 'bb' VR. The bank's operating
environment, company profile and profitability highly influence its
VR. Mifel's VR also considers its asset quality, capitalization and
liquidity metrics, which are in line with its current rating
category.

Mifel is a midsized bank focused on medium enterprises. Its
competitive position relies on the offering of tailored finance
products and its strong customer relationships. The bank's more
concentrated business model, with relevant exposures to vulnerable
segments of the economy such as infrastructure and investment
projects, and commercial mortgages, is also incorporated in the
bank's company profile assessment.

The bank's financial profile remains consistent with its rating.
Profitability has been at the low end of the range for similarly
rated banks. Mifel's operating profit to RWAs ratio declined to
1.7% at YE19 from 2.5% at YE18 due to higher interest expenses on
customer deposits as well increased credit costs. With the current
economic downturn, Fitch expects this deteriorating trend to
continue.

Mifel's asset quality deteriorated slightly last year but remained
consistent with its ratings. As of YE19 the adjusted impairment
ratio (NPL ratio plus charge-offs) increased to 3.5%, higher than
the four-year average of 2.0% but still below the banking system
(4.6%). The economic slowdown has negatively affected the bank's
borrowers, particularly in the mortgage, agribusiness and
infrastructure sectors. Fitch's assessment of Mifel's asset quality
also factors in the bank's highly concentrated loan book, where the
20 largest borrowers accounted for 28% of the gross loans and 1.9 x
CET1. While the special accounting criteria announced by the local
regulator could mitigate a rise in impairments and, provisioning
expenses in the short-term, a slower than anticipated recovery will
pressure asset quality.

Mifel's funding profile benefits from a growing deposit base (69%
of total funding). As of YE19, the bank's loans to customer
deposits ratio declined to 127.8% (2015-2018: 147%). The bank also
finances its operations with wholesale funding from development
banks to better match its balance sheet and the structure of its
credit products. Mifel's liquidity position is adequate as
reflected in its LCR, which has been steadily above 100% over the
past four years. However, in Fitch's view, the bank's higher
deposit concentration relative to peers could challenge funding and
liquidity in the current operating environment. Mifel's 20 largest
clients represented 34.4% of total deposits.

Mifel's VR also factors in its adequate capitalization metrics. As
of YE19, the bank's common equity Tier 1 (CET1) capital ratio
reached 13.2%, slightly above its average of 12.8% from 2015 to
2018. However, the bank has a limited cushion to withstand a
deterioration in asset quality and profitability relative to its
current rating level.

SUPPORT RATINGS

Mifel's Support Rating and Support Rating Floor were affirmed at
'5' and 'NF', respectively, in view of the bank's low systemic
importance, which indicates that although possible, external
support cannot be relied upon.

HYBRID SUBORDINATED NOTES

The bank's global hybrid subordinated securities are rated 'B+',
two notches below the applicable anchor rating, Mifel's VR of 'bb'.
The securities are notched down once for non-performance risk as
coupon deferral or cancellations will likely be triggered at
relatively high levels of capitalization. Per Fitch's criteria, the
base case notching for loss severity is two notches from the VR.
However, in Mifel's case, only one notch is applied due to ratings
compression.

RATING SENSITIVITIES

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

IDRs, VR AND NATIONAL RATINGS

A downgrade of the Mifel's VR and IDR could be triggered by a
material deterioration in the bank's asset quality and
profitability that weaken its capital position. Specifically, a
CET1 ratio consistently below 12% and operating profit to RWAs
metric below 2% would be negative for the bank's ratings.

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

IDRs, VR AND NATIONAL RATINGS

Negative Rating Outlooks could be revised back to Stable if the
impact of the coronavirus shock on the bank's credit profile is
less than expected, with a relatively quick recovery, which will
also depend on the ability of Mifel to confront current challenges
and to contain asset quality and profitability negative effects.

The ratings currently have a Negative Outlook, which makes an
upgrade highly unlikely over the near term.

Over the medium term, these ratings could be upgraded by the
confluence of an improvement in the operating environment and the
bank's financial profile. In particular, a material strengthening
of Mifel's franchise combined with the maintenance of CET1 ratio
consistently above 14%, and a reduction in the bank's risk and
business concentrations on both sides of the balance sheet could
lead to an upgrade.

SUPPORT RATINGS

A potential upgrade of Mifel's Support Rating and Support Rating
Floor is limited at present, since external support cannot be
relied upon due to its modest systemic importance.

HYBRID SUBORDINATED NOTES

The bank's subordinated debt rating will likely mirror any
downgrade in the bank's VR, as these are expected to maintain the
same relation to Mifel's intrinsic profile.

However, if the bank's rating is upgraded further, the notching of
the notes' rating relative to the bank's VR will probably widen as
rating compression will no longer apply per Fitch's current
criteria.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions
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.

SUMMARY OF FINANCIAL ADJUSTMENTS

Prepaid expenses and other deferred assets were classified as
intangibles and deducted from Fitch Core Capital to reflect its low
absorption capacity.

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

Banca Mifel, S.A., Institucion de Banca Multiple, Grupo Financiero
Mifel: '4'; Governance Structure: '4'.

Mifel has an ESG Relevance Score of '4' for Exposure to Group
Structure due to its exposure to an ownership concentration in a
single family; this has a negative impact on each entity credit
profile, and is relevant to the ratings in conjunction with other
factors.

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

BANCO VE POR MAS: Fitch Affirms LT IDR at BB-, Outlook Now Neg.
---------------------------------------------------------------
Fitch Ratings has affirmed Banco Ve por Mas, S.A. Institucion de
Banca Multiple's (BBX+) Long-Term Issuer Default Ratings at 'BB-'.
Fitch also affirmed BBX+'s National Scale ratings at
'A(mex)'/'F1(mex)'. The Rating Outlook on the Long-Term IDRs is
Negative. The Rating Outlook on the Long-Term National Scale rating
has been revised to Negative from Stable.

In addition, Fitch has affirmed the National Scale ratings of Casa
de Bolsa Ve por Mas, S.A. de C.V. (CBBX+) and Arrendadora Ve por
Mas, S.A. de C.V. Sofom E.R. (AXB+) at 'A(mex)'/'F1(mex)'. The
Rating Outlook on the long-term ratings has been revised to
Negative from Stable.

The Negative Outlook on the ratings reflect the agency's
expectations that deteriorating operating conditions due to the
coronavirus pandemic will likely pressure BBX+'s asset quality and
weigh on its already modest profitability due to lower loan growth,
decreasing interest rates and higher credit costs over the
medium-term.

KEY RATING DRIVERS

BBX+ - IDRs, Viability Rating (VR) and National Ratings

BBX+'s IDRs and national ratings are driven by its intrinsic
creditworthiness that is reflected by its VR of 'bb-'. The bank's
operating environment, modest franchise and less diversified
business model, and limited profitability highly influence its VR.
The ratings also factor in the bank's asset quality,
capitalization, funding and liquidity metrics, which are
commensurate to BBX+'s current rating category.

Although BBX+ is a universal bank, its business model is
concentrated on providing financing products to big companies, GRE
(government-related entities), financial institutions and SMEs
across various industries. To a lesser extent, the bank also grants
mortgage loans to individuals, which have accounted for an
increasingly higher proportion of the bank's loan portfolio in
recent years. BBX+ also complements it business model with saving
products and trading activities. In Fitch's opinion, BBX+'s
business model is relatively more sensitive to deteriorating
operating conditions due to the coronavirus pandemic compared with
larger, more diversified commercial banks in Mexico. This is due to
the bank's higher exposure to the agribusiness sector, SMEs and
GREs linked to production of highly volatile commodity prices.

Profitability remains BBX+'s weakest link in its financial profile.
As of YE19, the operating profit to risk-weighted assets (RWAs)
ratio was 1.2%, higher than the average of 1% over the last four
years, but remains low relative to similarly rated banks. In
Fitch's view, BBX+ enters this crisis in a disadvantaged position
due to its weaker earning generation and higher exposure to riskier
sectors. Although the ultimate consequences of the coronavirus
pandemic are still uncertain at this stage, Fitch expects credit
costs to increase given the bank's exposure to SMEs and other
vulnerable sectors, such as non-bank financial institutions and
companies exposed to commodities production with volatile prices.
Additionally, lower growth and interest rates will also weigh on
profitability.

BBX+'s asset quality metrics are in line with the bank's current
rating; however, these have deteriorated since 2015. The
deterioration is due to the effect of the economic slowdown on its
borrowers, as well as the reduction of government support programs
that did not materialize in the livestock and agricultural sector.
Fitch believes that given the more challenging operating
environment, asset quality will continue to deteriorate.

Funding and liquidity remain the bank's strongest factor in its
financial profile. BBX+'s funding profile has improved in recent
years. As of YE19, the loans to customer deposits ratio improved to
111.2% due in part to lower loan growth, and compared favorably to
other midsized Mexican banks. Refinancing risk is not material in
the short and medium term as BBX+ has ample access to funding lines
from banks or state FIs as well as a deposit base structure more
oriented to core retail deposits with depositor concentrations that
compare favorably to its peers.

The bank's capitalization is adequate. As of YE19, the common
equity Tier 1 ratio stood at 12.8%, similar to the 13% average of
the past four years and in line with other midsized Mexican banks.
Historically, this ratio has been stable through business cycles,
mainly due to recurring capital injections from its shareholders
and modest internal earnings generation. However, in the current
operating environment, the bank has a limited cushion to withstand
a deterioration in asset quality and profitability relative to its
current rating level.

Support Rating and Support Rating Floor

BBX+'s Support Rating and Support Rating Floor of '5' and 'NF',
respectively, reflect the bank's low systemic importance. Although
possible, external support cannot be relied upon.

ABX+ and CBBX+ − National Ratings

The ratings of ABX+ and CCBX+ are aligned with BBX+'s national
scale ratings, and consider the Grupo Financiero Ve por Mas, S.A.
de C.V.'s (GFBX+) legal obligation to support its subsidiaries, as
well as Fitch's perception that these remain core to the group's
overall strategy and business profile. GFBX+'s creditworthiness, in
Fitch's view, is totally aligned to that of its main subsidiary
BBX+.

RATING SENSITIVITIES

BBX+ - IDRs, VR and National Ratings

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

  -- BBX+ ratings could be downgraded specifically if there is a
sustained increase in the bank's NPL ratio above 5%, or a
deterioration in the bank's operating profit to RWAs consistently
below 1% or CET1 ratio consistently below 12%.

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

  -- The Negative Rating Outlook could be revised back to Stable if
the impact of the coronavirus shock on the bank's credit profile is
less than expected with a relatively quick recovery, which will
also depend on the ability of BBX+ to confront current challenges
and minimize the impact on asset quality and profitability;

  -- It is highly unlikely that the ratings could be upgraded over
the near term since the Rating Outlook is currently Negative;

  -- Over the medium term, the ratings could be upgraded by the
confluence of an improvement of the operating environment and the
financial profile of the bank, specifically, if the operating
profit-to-RWAs ratio is consistently above 1.25% while maintaining
reasonable and stable metrics of other financial factors.

Support Rating and Support Rating Floor

Upside potential for the SR and SRF is limited and can only occur
over time with a material growth of the bank's systemic
importance.

ABX+ and CCBX+ - National Ratings

Any movement in ABX+ and CBBX+ national ratings would be driven by
a movement of BBX+'s ratings.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions
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.

SUMMARY OF FINANCIAL ADJUSTMENTS

Pre-paid expenses and other deferred assets were classified as
intangibles and deducted from Fitch Core Capital or tangible equity
to reflect its low absorption capacity.

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.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

The ratings of ABX+ and CBBX+ are driven by the institutional
support from Bank ve por Mas rated at 'BB-', Rating Outlook
Negative

ESG CONSIDERATIONS

Banco Ve por Mas, S.A., Institucion de Banca Multiple, Grupo
Financiero Ve por Mas: 4; Governance Structure: 4

BBX+ has an ESG Relevance Score of 4 for Exposure to Group
Structure due to its exposure to an Ownership concentration in a
single family; this has a negative impact on its credit profile,
and is relevant to the ratings in conjunction with other factors.

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

INTERJET AIRLINES: Suspended From IATA Body Over Payment Arrears
----------------------------------------------------------------
Noe Torres and Anthony Esposito at Reuters report that struggling
Mexican airline Interjet was suspended from the clearing house
membership of the International Air Transport Association (IATA)
for failing to keep up with payments.

The news stirred renewed concern about the future of the
privately-owned carrier, which has rejected over the past few
months a string of media reports suggesting that it has been
laboring to meet financial obligations, according to Reuters.

In a letter, the Airlines Clearing House (ACH) said the membership
of ABC Aerolineas S.A. de C.V., which operates under the name
Interjet, was suspended with "immediate effect" due to the
"non-payment of a clearance balance," the report notes.

In a statement, Interjet said it had taken the decision to opt out
of the IATA clearing house temporarily but aimed to rejoin the body
once it had resolved an outstanding payment issue with a service
provider, the report relays.

It would not be correct to suggest that Interjet did not have the
means to continue operating, added the company, which is one of
Mexico's three principal airlines, the report notes.

Interjet and its domestic rivals have been hit by a slump in demand
during the coronavirus outbreak, and had one of its premises sealed
off by tax authorities in Mexico, the report adds.

A few hours after the IATA announcement, Mexico's federal consumer
protection agency Profeco questioned whether Interjet had the means
to continue meeting various obligations, the report discloses.

In a statement, Profeco said it had asked Interjet to show how the
airline was protecting the rights of consumers following changes it
made to flight schedules for April and May, the report relays.

In response, Interjet said it had made 186,577 refunds to
passengers by March 31 in the form of vouchers of equivalent value
for new flights and valid for a year, Profeco said, the report
notes.

But given the lack of backup evidence, Interjet's assertion could
"constitute an act of simulation", the agency added, saying the
company was failing to provide "certainty, fairness or legal
certainty to consumers," the report discloses.

Mexico's government in November offered to mediate in a simmering
financial dispute between Interjet and broadcaster Televisa, the
report says.

Interjet has a portfolio of more than 50 routes in Mexico and
abroad, the report adds.

                         About Interjet

Interjet is an international airline based in Mexico City carrying
almost 14 million passengers annually within Mexico and between
Mexico, the United States, Canada, Central, and South America. In
all, it provides air service to 54 destinations in 10 countries
offering its passengers greater connections and travel options
through agreements with major airlines such as Alitalia, All Nippon
Airways (ANA), American Airlines, British Airways, Emirates, Air
Canada, LATAM Group, EVA Air, Iberia, Lufthansa, Hainan Airlines,
Hahn Air, Qatar Airlines and Japan Airlines.

As reported in the Troubled Company Reporter-Latin America on
Sep. 3, 2019, Interjet Airlines re-iterated the airline is not in
"technical bankruptcy" as erroneously reported by a financial news
agency.

Interjet Airlines is in a dispute with Mexico's Tax Administration
Service (SAT), related to alleged taxes owed by the airline. An
attempt by SAT to seize control of the airline's bank accounts in
an effort to collect the alleged taxes was denied by the courts and
the airline is in negotiation with the tax authorities to determine
what back taxes are actually due.



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

COOPERATIVA DE AHORRA: S&P Assigns 'B' Issuer Credit Rating
-----------------------------------------------------------
S&P Global Ratings assigned its 'B' global scale and 'uyBB+'
national scale issuer credit ratings (ICRs) to Uruguay-based
Cooperativa de Ahorra y Credito FUCEREP (Fucerep). The outlook on
both global and national scale ratings is negative.

S&P said, "Additionally, we assigned a 'uyB+' issue-level rating to
Fucerep's hybrid notes, three notches below the national scale ICR,
which reflects subordination risk and coupon deferment in the event
that the cooperative is at bankruptcy, stops payments, or the local
regulator intervenes and it suspends payments.

"Our ratings on Fucerep reflects the entity's small size within the
Uruguayan financial system as well as weak profitability amid poor
efficiency and high cost of risk. The ratings also reflect its
comfortable capitalization metrics and its payroll collection
mechanisms in its retail portfolio that help reduce credit losses,
moderated by the expected impact from COVID-19. Additionally, the
ratings on Fucerep incorporate a funding profile that has a higher
concentration by clients compared to peers, despite its cooperative
nature. This concentration is only partly mitigated by the high
proportion of term deposits and systematic saving accounts ("ahorro
programado") that confer some funding stability. We also account
for its adequate liquidity profile, with good liquidity levels and
the liquidity contingency lines available.



                           *********


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

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

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

This material is copyrighted and any commercial use, resale or
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